Several restaurant owners in Los Angeles have implemented a three percent surcharge to their customers’ bills in an effort to cover healthcare services for their employees.
This tactic, which is already used in San Francisco, has been met with mixed reviews. Critics question why restaurants such as Lucques, Tavern and A.O.C. don’t add the surcharge directly to the menu items. Owners have responded, saying that the extra percentage provides a more clear explanation of where the funds go, and point out that customers can opt out of paying the fee if they wish to do so. Additionally, the restaurant owners have hinted that other local restaurants such as the Hungry Cat, Mélisse, Son of a Gun, Trois Mec among others, would be following in their footsteps.
Would you pay a three percent surcharge at any of these eateries? Should healthcare surcharges be required of all restaurants? Does the size of the restaurant or affiliation to a chain change your decision in paying extra for your meal?
Guests:
Josiah Citrin, Owner of Mélisse Restaurant in Santa Monica
Anthony Dukes, Marketing Professor at USC Marshall School of Business