CHARLOTTE, N.C. — How often do you inspect your receipt at a restaurant before you pay? One person emailed our Verify team saying a local restaurant charged them a service fee that didn't include a tip. They want to know if restaurants can mandate service fees.
Viewer Cyrstal S sent us this email saying:
My friend and I made a reservation at Leah and Louise. Upon being informed of the menu, we were told there was an automatic 40-dollar fee added to our bill to offset the cost of workers' health care and investment options. They went on to say this fee was not inclusive of a tip but added regardless.
For the latest Verify stories, download the WCNC Charlotte mobile app and enable push notifications.
THE QUESTION:
Can a restaurant mandate such a fee and charge it regardless of your preference?
OUR SOURCES:
THE ANSWER:
Yes, a restaurant can mandate a fee as long as they are upfront about the service charge.
WHAT WE FOUND:
We reached out to Leah and Louise's restaurant they told us the customers are referring to the Bayhaven Pledge, which is a 23 percent service fee on all orders that help support staff to have livable wages. Tipping is not required but appreciated.
They went on to tell us servers are supposed to tell customers about the fee before they order. However, within the past two weeks, the restaurant has stopped that service fee because they say diners were more accepting of it during the pandemic but are now less receptive.
Attorney Gary Mauney tells our Verify team restaurants can certainly charge a service fee, but they should be upfront about it.
And in fact, the North Carolina Administrative Code requires a sign, making customers aware of the service charge. They also mandate that this separate fee must be broken out as a discrete item on the bill it can't be folded into the price of the food and drinks. They said any such charge would not count as a ti to the server or staff.
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, Twitter and Instagram.
VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit VERIFY.