Service fee to offset the high cost of operating in CA (San Francisco: buy, gated)

[davidt1]

I don't know if this is old news. Just ordered a pizza online and saw a 3% fee added to offset the high cost of operating in CA. I guess except for government employees, everyone else is squeezed in the "world's fifth largest economy."

[Parnassia]

A lot of businesses probably just roll these "higher operating costs" into their pricing...this one chose to make a statement.

[CaliRestoration]

Originally Posted by davidt1

I don't know if this is old news. Just ordered a pizza online and saw a 3% fee added to offset the high cost of operating in CA. I guess except for government employees, everyone else is squeezed in the "world's fifth largest economy."

San Francisco restaurants have been doing this for years with their "health mandate" fee (supposedly to go towards uninsured workers).

Seriously, order a meal at a decent restaurant and check your bill afterwards.

[marcopolo666]

Originally Posted by CaliRestoration

San Francisco restaurants have been doing this for years with their "health mandate" fee (supposedly to go towards uninsured workers).

Seriously, order a meal at a decent restaurant and check your bill afterwards.

Well, since the city *mandated* health care over a decade ago ...

However, I seem to recall that the city investigated restaurants that were using the term "employee healthcare" or "healthy SF" on their checks, and requiring them to *prove* that all of the money collected actually went to the employee's health care. A handful got heavy fines, which is why it was changed to something like “S.F. mandates,” which *isn't* the name of an actual plan and is generic enough so that they could pocket part of it (not give it to employees).


Edit: a quick search found this article. Over $2M in fines.

https://www.sfchronicle.com/restaura...e-13254864.php

[davidt1]

I am in Sacramento and the restaurant is Pizza Hut. I hear restaurants in LA have a surcharge too. Apparently it's a statewide thing.

[2sleepy]

Originally Posted by davidt1

I am in Sacramento and the restaurant is Pizza Hut. I hear restaurants in LA have a surcharge too. Apparently it's a statewide thing.

I hadn't heard of this so I did a little research., apparently the franchises add this fee and they can set it at whatever they want. I don't buy from Pizza Hut anymore, I stopped after they added a $4.96 delivery fee. Their pizza is just not that great, I don't see how adding service charges and delivery fees are going to help them, especially when half the time the crust is so greasy it slides out of your hands

[expatCA]

Originally Posted by davidt1

I don't know if this is old news. Just ordered a pizza online and saw a 3% fee added to offset the high cost of operating in CA. I guess except for government employees, everyone else is squeezed in the "world's fifth largest economy."

In other words anytime the cost goes up in CA a business will pass it on to their customers, who end up paying it. Hits the poor the hardest and then the middle class and no real impact on the rich.

[2sleepy]

Originally Posted by expatCA

In other words anytime the cost goes up in CA a business will pass it on to their customers, who end up paying it. Hits the poor the hardest and then the middle class and no real impact on the rich.

Or Pizza Hut's business will suffer as a result of them trying to make some kind of 'political statement' and another Pizza store will pick up the customers they lose.

[V8 Vega]

That started with the $15 minimum wage.

[Tulemutt]

Originally Posted by expatCA

In other words anytime the cost goes up in CA a business will pass it on to their customers, who end up paying it. Hits the poor the hardest and then the middle class and no real impact on the rich.

Anytime costs go up for business anywhere the costs get past on to the customer. That is the very definition of business.