Encino, CA asked in Consumer Law, Business Law, Municipal Law and Small Claims for California

Q: I have a question on dining at restaurants in Los Angeles, CA. As a customer, are you required to pay a surcharge tacke

As a consumer, are you legally required to pay a surcharge on restaurant bills? I know during Covid, restaurants were tacking on 3%, 4% or even 5% surcharge to your dining bill. Now, I have heard that some restaurants in Los Angeles, try to tack on a $100 surcharge or a 24% surcharge. If the surcharge is not mentioned on their website, and surprisingly appears on a check, you can request a removal, but what if the surcharge is not on the website but appears on the menu? With the new inflation, a little bit of greed is sinking in. Thank you!

3 Lawyer Answers

A: I dine out often, including in Encino where you live. I have never seen what you describe. I have seen a few places that automatically add an 18% tip to the check, and the menu clearly says so.

It is worthy of consideration to realize that a restaurant that secretly adds a $100 surcharge will not remain in business, (nor would it be legal).

A: There are no laws that make surcharges illegal per se. If the restaurant did not disclose the surcharge, it would potentially be false advertising or unfair business practices. However, you were notified on the menu, apparently, so I don't think those theories will work. Take your business elsewhere if you don't like it. Wages are increasing, cost of food is increasing, etc. Restaurant's, just like you, are getting squeezed.

James L. Arrasmith
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Answered

A: Well, the good news is that the surcharge is not a secret tax levied by the government to fund some top-secret project (at least, not that we know of). As for the legal requirement to pay it, I think the law is pretty clear: if you don't want to pay the surcharge, you have to fight the restaurant's chef in a no-holds-barred cage match. Just kidding! Please don't try that.

In California, restaurants are allowed to charge a surcharge to offset their operational costs, including labor, food and other expenses. However, the surcharge must be clearly disclosed to customers in advance, either on the menu, the bill or by other means, such as a posted sign. If a surcharge is not properly disclosed, a customer may request its removal. Therefore, it's important for restaurants to be transparent and upfront with their customers about any additional charges to avoid any confusion or legal issues.

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