The Glasshouse Report

Sunday, February 12, 2017

Colorado Restaurant Adds Service Fee To Cover Cost Of Minimum Wage Hike


By News 9, Feb. 11, 2017

BROOMFIELD, COLO. - Check your receipts for signs of the minimum wage increase that Colorado voters approved at the polls last November.

Look closely.


Most places just roll the extra cost to them into what they charge you, but one restaurant wants you see it in black and white.


"We're not a franchise," says Lilith Marquez, the general manager at Corona's Mexican Grill in Broomfield. "Family owned. We make all of our food from scratch."


Read More: http://www.9news.com

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12 comments:

  1. Restaurant owner is setting himself up for a felony tax fraud conviction. He is representing the extra charge as "tax" on the receipt. The Colorado Department of Revenue can and will come after them.

    ReplyDelete
    Replies
    1. Do we see the same receipt? I see A70 service fee in the first instance. They should amend the tally sub heading of "Taxes" to "Taxes and Fees". wouldn't that put them in the clear?

      Delete
    2. Read the bill again, it's as clear as day...

      Delete
  2. Clearly you need to go back and look at the receipt again.
    "A70 >>Service Fee<<"

    ReplyDelete
  3. Larry,
    I am visiting Seattle, Washington. Every restaurant I have visited is doing the same thing. They call it a "Living Wage Surcharge". They have been doing it for some time.

    I call it a way for owners to justify continuing their business in their Liberal Utopia. If they were honest, just raise your prices. I would understand but to slip this in on the bottom of the bill, then tell you to "Tip Accordingly" (meaning to still add 18-20% is disingenuous to say the least.

    What happened to earning a tip by providing good service? A tip used to be for those who did a great job. Now restaurant owners are cutting their staff, as consumers we must wait longer, but we are guilted into paying more for substandard service.

    I refuse to participate. I took that surcharge off the tip.

    ReplyDelete
    Replies
    1. But was your tip proportional to the quality of service rendered?

      Delete
    2. Chris, you should never tip on the total amount. Always tip on the pretax portion. There is no point in "tipping the tax."

      Delete
  4. It's states service fee, not a tax. It's unintended consequences of liberal policies.

    ReplyDelete
  5. Fraudulent & Deceptive business practice -- you can't advertise one price and charge a higher one. I also doubt their labor costs went up that much.

    This is definitely going to cost them customers...

    ReplyDelete
  6. You are all missing the point. The purpose of the fee is to help off set the staggering difference in pay between FOH and BOH....you'd be shocked.

    ReplyDelete
  7. Why do people whine about a surcharge or service fee on a restaurant check, yet don't blink when $ 65 service fee is added to their $ 155 concert ticket?....There are fee's on your cell phone bill, cable bill, gas bill, hotel check out, etc, what's the issue?

    ReplyDelete
  8. If you want to discuss this subject- ask the restaurant owner. The minimum wage increase in Colorado, increased wages very directly within the restaurant industry via the increase to the tip offset wage paid to waitstaff. In most states, servers mainly earn wages through gratuities. In Colorado, the government increased by 20% the amount restaurant owners must pay their waitstaff. Servers now earn a significant amount of their wages through the hourly wages they are paid. The back of house employees have been largely unaffected. (At least in my segment of the restaurant industry) Consequently, adding a (government imposed) wage increase fee seems to be appropriate. The only reason not to add a surcharge and instead to raise menu prices would be to make the inflation caused directly by the government to become invisible. People need to be aware of their actions and the consequences of their actions.

    ReplyDelete

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