‘Insanity': Wild restaurant fee shocks the internet

News.com.au

19-06-2025

A disgruntled patron posted a receipt from a recent trip to a restaurant that charged its guests a mandatory 'living wage fee' on Instagram threads — and the internet was incensed.
Tipping culture has long been a point of contention for Americans, and as prices continue to rise, the practice has become an even more controversial topic.
But now it seems that businesses are taking things too far by tacking on extra fees such as this one — and people aren't happy about it.
'Price increase without having to update the menu,' claimed one reply on the post.
'[This] means I'm never eating at that restaurant again,' said another.
Meanwhile, another commenter proposed an entirely separate issue of debate: the pooling of tips. 'If I wanna tip a person, I wanna tip that individual, not the entire team. This is unfair to the server and to me.'
However, a few lonely restaurantgoers cut the restaurant, which remained unnamed in the post — and the growing industry trend — some slack, and fired back at fellow commenters.
'Y'all have been asking for no tipping, this is what it looks like. It could reflect in drink/food prices, but then you all would say the place was too expensive.
No one is trying to trick you — if they were transparent about the service fee, STFU,' one impassioned viewer responded.
'Just include [the fee] in the cost of the food and drinks, like the rest of the world is doing, and pay the workers properly. Sincerely, a guy from Europe,' one aggrieved commenter suggested under the post.
This response was the sole sentiment that united incensed restaurant patrons on both sides of the debate. 'Mind your European business,' advised one reply, while another said:
'Hey, stay out of our insanity!'
For some small, family-owned restaurants, implementing charges like this living wage fee might allow the business to stay afloat and support their employees — especially amid a cost-of-living crisis.
Durham, North Carolina-based Lula & Sadie's is one spot that charges a living wage fee to combat 'rising overhead costs, slim industry profit margins and a minimum wage that won't budge,' per the family-operated restaurant's website.
'The fee is transparently listed on our menus, website and posted around the restaurant.'
Though local laws vary greatly in terms of tipping and charging policies in restaurants, New York City Consumer and Worker Protection rules, state that 'restaurants cannot charge a surcharge or other fee in addition to listed food or beverage prices,' but they can 'charge a bona fide service charge, but only if the charge is conspicuously disclosed to consumers before food is ordered.'
Examples of 'bona fide service charges' include splitting a meal on multiple plates, minimums per person and mandatory gratuity for large dining parties.
That being said, 'living wage fees' are often considered service charges, depending on how they're disclosed and absorbed by the business.
'There is no law in New York State that specifically prohibits automatic gratuities. However, it is incumbent upon any restaurant including an automatic gratuity charge to provide — in advance — clear and conspicuous notice that an automatic gratuity charge will be levied and all terms associated with the automatic charge.
If consumers are not provided advanced notice, [they] may have a claim under the NYS Deceptive Acts & Practices law,' New York State's Division of Consumer Protection told News10NBC.