Restaurant surcharge stirs up controversy: 'Business owner should be embarrassed'
A Georgia man shared a photo of his receipt to Instagram Threads, asking, "WTF is a living wage fee?" following dinner in mid-June.
On the bill was a $13 Reuben sandwich, a $12 burger, two sides of fries for $4 each and an 18% "living wage fee" that tacked on an additional $5.94 — bringing his total, with $1.81 in tax, to $40.75.
Below the total was a disclaimer from the unnamed restaurant saying, "Living wage fee of 18% added to each dine-in check. This fee goes directly to staff payroll and provides a living wage to our team."
The notice also said that any tips given would be pooled and distributed among the "entire team."
The post received over 500 comments and was shared across the internet, including on Reddit. People debated the levy and brought up similarly controversial policies, such as "kitchen appreciation" fees and health and safety surcharges during the COVID-19 pandemic.
Fox News Digital reached out to the original poster for comment.
"The business owner should be embarrassed to even have that on the bill," one person on Reddit said. "If they can't pay the staff, don't do business. Your business skills are clearly not good to not be able to pay the workers sufficiently."
One woman on Threads said, "It means the business owner is too cheap to pay his employees adequately, so he's making you pay it."
"It means I'm never eating at that restaurant again," added another man.
Salar Sheik, a restaurant consultant based in Los Angeles, understood the frustration and said it's important to consider the guest's perspective as well as the profitability goal of restaurants.
"Guests should feel they're receiving value. Underpricing menu items and then adding a service charge or percentage on top can leave them feeling misled or cheated."
"Guests should feel they're receiving value," Sheik told Fox News Digital. "Underpricing menu items and then adding a service charge or percentage on top can leave them feeling misled or cheated."
It's also not a long-term solution, he said.
"A better approach is to reassess your menu pricing and cost of goods to ensure your staff can earn a living wage," Sheik said. "Unfortunately, many restaurants avoid that hard work and use these fees as a shortcut."
Many servers also weighed in with thoughts on the system.
One former server said, "The living wage and pooled tips would've boiled my blood."
"I had no trouble earning $200-$300 in tips per shift by providing excellent customer service, meaning I was already earning WELL ABOVE a living wage just by doing my job," the person commented on Reddit.
Others argued the customers would be covering the cost of payroll either way and said it didn't matter to them whether food prices were raised or a surcharge was added.
"I don't care where the money goes."
"I don't care where the money goes," one Redditor wrote.
"To pay the staff, to pay the electric bill, to pay rent – none of that is my business," the person added. "I'm a customer, not a restaurant manager."
One woman on Threads said the surcharge was actually more transparent than if the restaurant simply raised food prices.
"Y'all been asking for no tipping, this is what it looks like," she added, referring to a recent push to eliminate tips and raise the minimum hourly wage for restaurant workers.
In some states, tipped workers make as little as $2.13 an hour.
"The customer always pays the wages," another Instagram user said. "Either in tips, service fee, or in increased food prices. At least this way you know you don't have to tip extra."
Many said they wouldn't tip at all if they saw the living wage charge on their bill.
Others noted the fee must be made clear before customers sit down to eat — which the restaurant did, according to another comment on the original Threads post.
A woman shared what she said was the establishment's menu.
It read: "100% of living wage fees are used for payroll. Rather than just increasing prices to pay staff more, this increase is guaranteed to go fully toward the staff and provides a wage to all employees that they can rely on for a steady income."
It continued, "We value each employee as part of our team and genuinely believe this newly implemented system is the future of our industry's survival, or at least ours."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Business News
an hour ago
- Time Business News
Direct To Consumer: Bachpan Play School's New Expansion Route
In recent decades, D2C (direct-to-consumer) marketing has established itself as a trend with apparel brands and brands dealing with health and wellness, for the most part. However, a new D2C wave seems to be approaching with respect to early learning at home. Indian parents are growing increasingly conscious about value when it comes to their children's education, and with futuristic technologies such as artificial intelligence (AI) starting to shape the world, that value-consciousness today calls for innovative solutions. In such a dynamic context, Bachpan Play School, which is a leading preschool brand in India with 1200+ branches nationwide, has been reported to soon extend its innovative educational products and 20 years of legacy into the D2C domain. This makes it important to explore what direct-to-consumer education is and how the D2C preschool model will address the growing concerns of new-age parents of the next-gen leaders. So far, parents have always been on the receiving end of educational products and services offered by schools. In other words, educational products and services are mediated by schools, and while parents are traditionally the primary decision-makers, they are not the direct consumers who have a direct say in what their children are learning. With the emerging D2C preschool model, this is all set to change for 21st-century parents and learners. Direct-to-consumer education is not about e-commerce as much as it is about a subtle shift in pedagogy and educational product designs that changes how learning happens. While the traditional model of schooling hinges on infrastructure and is constrained by location, the D2C preschool model democratizes learning to a further extent, and customized play-based learning kits and even age-appropriate assessments are directly in the hands of parents. It is to be noted that the D2C preschool model gained traction particularly after the COVID-19 era, and it is in its nascent stages in India, adopted mostly among urban and tech-smart parents, who have grown accustomed to homeschooling and digital learning. However, this model is expected to grow in Tier 2 and Tier 3 cities where parents have high aspirations but limited access to quality, future-focused education. The D2C preschool model works very much like it does in other industries. It involves reaching the consumers, who are parents and guardians in this context, directly. The Bachpan D2C expansion in India, for example, is aimed at ensuring that some of its most unique and relevant offerings reach every child, irrespective of whether or not they are studying in Bachpan Play School. One of these offerings includes learning kits with DIY activities which parents and children can do together, ensuring both home learning and parental involvement. While traditional pre-schooling still dominates, albeit with advanced learning tools and specialized learning environments, Bachpan Play School is a major traditional player that is set to redefine the preschool space with its D2C offerings. During the initial phase, Ajay Gupta, Founder and CEO of Bachpan Play School , stated it clearly, 'I never wanted to start just one school and change the lives of a limited number of students in a specific area. I always wanted to have multiple schools in multiple locations and change the lives of countless children.' He used the franchise model to achieve this vision, and the Bachpan D2C expansion is said to be a step forward in that vision. The D2C preschool model blurs the line between school and home, and it meets the parents at their doorstep. Bachpan's move signifies a radical shift happening in the preschool space and heralds a new chapter in early childhood education and development. TIME BUSINESS NEWS
Time Business News
2 hours ago
- Time Business News
The Rise of Contactless Delivery and What It Means for Logistics
The COVID-19 pandemic reshaped consumer behavior and logistics operations almost overnight. Social distancing, health concerns, and rapid e-commerce growth prompted a shift away from traditional delivery models. Contactless delivery quickly emerged as a safer, more efficient alternative. As consumers began prioritizing hygiene and convenience, delivery tracking evolved from a 'nice-to-have' to a critical component of logistics. Today, logistics providers are rethinking last-mile operations, driven by new customer expectations and digital capabilities. This article explores what contactless delivery is, why it's here to stay, and how it's transforming logistics—from local drop-offs to international shipping. Contactless delivery is a fulfillment method where couriers deliver items without requiring direct interaction with the recipient. Unlike traditional delivery that often involves signatures or hand-to-hand exchange, contactless delivery uses: GPS-verified drop-offs One-time PINs (OTP) Photo confirmation via mobile apps These changes were rapidly adopted during the pandemic but are now standard practice across package delivery services. E-commerce retailers, food delivery apps, and third-party logistics companies alike have embedded contactless delivery into their standard workflows. Example: Amazon's 'Photo on Delivery' feature and UPS's signature-waiver policies are now widely accepted across urban and suburban markets. What began as a temporary response to a global health crisis has become a long-term consumer preference. Customers now expect safety, speed, and convenience with every delivery. Key drivers: Safety and hygiene: Customers want minimal physical contact. Customers want minimal physical contact. Digital convenience: Mobile apps and push notifications make contactless delivery seamless. Mobile apps and push notifications make contactless delivery seamless. Efficiency: Couriers save time by avoiding waiting or collecting signatures. Benefits for logistics operations: Reduced handling and faster delivery cycles Fewer failed deliveries Better customer reviews and loyalty These changes support the rising demand for fast delivery, especially in urban centers where time windows are tight. Example: Instacart and DoorDash both saw a permanent shift to contactless options even after lockdowns eased, proving the model's staying power. The shift toward contactless fulfillment has forced delivery companies to retool operations and adopt smarter systems. Operational adjustments include: No-signature drop-offs using GPS and photo proof using GPS and photo proof OTP delivery codes to ensure secure receipt to ensure secure receipt Mobile confirmation systems integrated with customer apps Fleet management has also evolved. Route optimization software now accounts for unattended deliveries, minimizing delays and improving drop efficiency. Companies like Serene Transports have embraced these changes by integrating app-based confirmations and contactless proof of delivery, ensuring both customer safety and operational efficiency. Example: FedEx's Delivery Manager system enables recipients to leave specific instructions, skip signatures, and receive real-time notifications. Modern consumers expect deliveries to be: Seamless Transparent Real-time What customers value: Accurate ETAs Instant delivery confirmation Easy-to-access tracking through mobile apps A delivery company that cannot meet these expectations risks losing loyalty. Real-time notifications and location tracking are no longer differentiators—they're expected features. Example: Shopify's Shop app provides real-time updates from multiple retailers, showing how delivery experience is becoming a key part of customer retention. While contactless delivery is common in domestic logistics, implementing it globally presents unique challenges. Key issues: Customs and regulatory compliance Language barriers and localization of delivery instructions and localization of delivery instructions Infrastructure readiness for real-time updates across borders Adapting contactless systems in cross border trucking requires smart compliance with customs protocols and seamless digital communication. Logistics tech providers must invest in globally interoperable systems to support cross-border efficiency. Example: Flexport and DHL use mobile and cloud-based tools to manage international proof of delivery and customs paperwork with minimal manual intervention. Looking forward, the contactless model is expected to evolve further with emerging technologies. Key future trends: Drone and autonomous vehicle delivery for low-contact, high-speed shipping for low-contact, high-speed shipping AI-powered route planning to reduce delays and fuel use to reduce delays and fuel use Integration with smart home systems—like smart door locks, parcel drop boxes, and IoT-connected garages The model also offers long-term sustainability benefits by lowering failed deliveries, cutting paper waste, and enabling leaner logistics. Example: Walmart is testing smart garage deliveries in partnership with Level Lock, showing how contactless delivery can integrate directly into homes. Contactless delivery has transformed from a pandemic-era workaround into a core logistics capability. It offers speed, convenience, and transparency—all of which are underpinned by robust delivery tracking systems. As logistics becomes more customer-centric and digitally driven, businesses that invest in contactless models will lead the way in speed, satisfaction, and scalability. Those who delay digital transformation risk being left behind in a logistics environment that demands agility, visibility, and trust. TIME BUSINESS NEWS
Yahoo
2 hours ago
- Yahoo
The Caribbean islands that give you a passport if you buy a home
Scroll through homes for sale in the Eastern Caribbean and it is no longer just bewitching beaches and a laid-back lifestyle being touted to woo buyers. More and more property listings are offering a passport too – and political and social volatility in the US is said to be fuelling an upsurge in interest. Five of the region's island nations – Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia – offer such citizenship by investment (CBI) from as little as $200,000 (£145,000). Buy a home, and you also get a passport that grants the holder visa-free access to up to 150 countries including the UK and Europe's Schengen area. For the wealthy, the islands' absence of taxes such as capital gains and inheritance, and in some cases on income too, is another major draw. And all five of the region's schemes allow buyers to retain their existing citizenship. In Antigua, estate agents are struggling to keep up with demand, says Nadia Dyson, owner of Luxury Locations. "Up to 70% of all buyers right now are wanting citizenship, and the vast majority are from the US," she tells the BBC. "We don't talk politics with them, but the unstable political landscape [in the US] is definitely a factor. "This time last year, it was all lifestyle buyers and a few CBI. Now they're all saying 'I want a house with citizenship'. We've never sold so many before." Despite Antigua's programme having no residency requirement, some purchasers are looking to relocate full-time, Ms Dyson says, adding: "A few have relocated already." US citizens account for the bulk of CBI applications in the Caribbean over the past year, according to investment migration experts Henley & Partners. Ukraine, Turkey, Nigeria and China are among the other most frequent countries of origin of applicants, says the UK firm which has offices around the world. It adds that overall applications for Caribbean CBI programmes have increased by 12% since the fourth quarter of 2024. Everything from gun violence to antisemitism is putting Americans on tenterhooks, according to the consultancy's Dominic Volek. "Around 10-15% actually relocate. For most it's an insurance policy against whatever they're concerned about. Having a second citizenship is a good back-up plan," he explains. Mr Volek says the ease-of-travel advantages the Caribbean passports provide appeals to businesspeople, and may also present a security benefit. "Some US clients prefer to travel on a more politically-benign passport." Prior to the Covid pandemic, the US was not even on Henley's "radar", Mr Volek continues. Movement restrictions proved "quite a shock" for affluent people used to travelling freely on private jets, prompting the first surge in stateside CBI applications. Interest ratcheted up again after the 2020 and 2024 US elections. "There are Democrats that don't like Trump but also Republicans that don't like Democrats," Mr Volek says. "In the last two years we've gone from having zero offices in the US to eight across all major cities, with another two to three opening in the coming months." Was China the reason Guyana faced higher Trump tariff? Raisins or not? Pudding debate splits island nation Letting off steam: How Dominica's volcanoes will boost its green energy Robert Taylor, from Halifax in Canada, bought a property in Antigua where he plans to retire later this year. He invested $200,000 just before the real estate threshold was raised to $300,000 last summer. Not only does being a citizen avoid restrictions on length of stay, it also gives him the freedom to take advantage of business opportunities, he explains. "I chose Antigua because it has beautiful water, I find the people very, very friendly and it also means great weather for the later part of my life." Still, such programmes are not without controversy. When passport sales were first mooted in 2012 by the then Antiguan government as a way of propping up the ailing economy, some considered the ethics a little iffy. Protesters took to the streets in condemnation, recalls former Speaker of the House Gisele Isaac. "There was a sense of nationalism; people felt we were selling our identity, so to speak, to people who knew nothing about us," she says. Leaders of some other Caribbean nations that do not offer CBIs have also been quick to criticise, including St Vincent and the Grenadines' Prime Minister Ralph Gonsalves. He has previously said citizenship should not be "a commodity for sale". Among the international community, there are fears that lax oversight may help criminals get through their borders. The European Union has threatened to withdraw its coveted visa-free access for Caribbean CBI countries, while the US has previously raised concerns over the potential for such schemes to be used as a vehicle for tax evasion and financial crime. A European Commission spokesperson tells the BBC that it is "monitoring" the five Caribbean schemes, and has been in talks with their respective authorities since 2022. She says an ongoing assessment is seeking to substantiate if citizenship by investment constitutes "an abuse of the visa-free regime those countries enjoy vis-à-vis the EU and whether it is likely to lead to security risks for the EU". The Commission has acknowledged reforms carried out by the islands, which it says will have an impact on its evaluation. For their part, the five Caribbean nations have reacted angrily to claims that they are not doing enough to scrutinise applicants. Dominica's Prime Minister Roosevelt Skerrit has described his country's CBI programme as "sound and transparent", adding authorities had worked hard to ensure its integrity. The government says passport sales have raised more than $1bn since the initiative's inception in 1993, paying for vital infrastructure including a state-of-the-art hospital. In St Lucia, Prime Minister Philip J Pierre says the island adheres to the highest standards of security to ensure its CBI does not inadvertently aid illicit activities. The need to appease the world's superpowers with raising revenue is a delicate balancing act for small Caribbean nations with meagre resources, dependent on the whims of tourism. CBI programmes were labelled a lifeline at a regional industry summit in April, with funds used for everything from cleaning up after natural disasters to shoring up national pension schemes. Antigua's Prime Minister Gaston Browne said money raised had brought his country back from the brink of bankruptcy over the past decade. Aside from buying property, other routes to Caribbean citizenship through investment typically include a one-off donation to a national development fund or similar. They range from $200,000 in Dominica for a single applicant, to $250,000 for a main applicant and up to three qualifying dependents in Dominica and St Kitts. In Antigua, investors also have the option of donating $260,000 to the University of the West Indies. In the face of international pressure, the islands have committed to new measures to bolster oversight, including establishing a regional regulator to set standards, monitor operations and ensure compliance. Additionally, six principles agreed with the US include enhanced due diligence, regular audits, mandatory interviews with all applicants, and the removal of a loophole that previously enabled an applicant denied by one country to apply in another. These days, passport sales account for 10-30% of the islands' GDP. Andre Huie, a journalist in St Kitts, says his country's CBI scheme is "generally well supported" as a result. "The public understand the value of it to the economy, and appreciate what the government has been able to do with the money."
