COVID-19 Surcharge: What Is It and Why Are Businesses Adding It

The coronavirus pandemic has forced a lot of businesses to stop its operations, it has also affected the import and export of goods and services. Because of this, small business owners were put on a tight spot and are now finding ways to prevent raising their menu prices for the sake of their customers.

Restaurants in the United States are adding a "COVID-19 surcharge" on the bill because the costs have increased. Instead of changing the prices of their menu, some establishments have added the new surcharge on the bill, just below the sales tax.

COVID-19 surcharge

Fox 17 in West Michigan reported about a restaurant located in Holland, Michigan. The restaurant in question is a famous burger joint in the area, Goog's Pub & Grub. A customer showed that the burger joint added a dollar to a tab of $12.50 and then added sales tax on the bill.

Goog's Pub & Grub posted on their Facebook page that even though their customers were surprised to see an additional $1 for the surcharge, they received overwhelming support from their community. It was the restaurant's way to make sure that the beef prices won't go up.

KY3, a West Plains local news station, also reported two local restaurants that added 5% "COVID-19 surcharge" on their bills. The local restaurants that KY3 reported are Ozark Cafe and Bootleggers Buffalo BBQ.

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Although a lot of customers told the local news station that they were happy to pay the surcharge in order to help the business, Bootleggers Buffalo BBQ announced through their Facebook page that they are no longer adding surcharge moving forward. Instead, the restaurant will increase prices on its menu.

The restaurant posted on Facebook: "We appreciate all of your support and understanding during this very unusual trying times! Please remember we are all human, treat each other with decency and respect, and let's try to get along and get through this together!"

A diner in Kingsport, Tennessee named Purple Cow discontinued adding a surcharge on beef prices because their customers were confused with the bill. The establishment received backlash on their Facebook page and now Purple Cow announced they will be changing the prices on their menu items and has since apologized for adding the surcharge.

Why is it added?

Restaurants are having a hard time with reopening because of the rising food prices and the increase in operating costs. According to Gregory Frank from Frank LLP Class Action Litigators, told Today that customers across the United States should be prepared for the possibility of seeing the "COVID-19 surcharge" on their bill, and these charges are legal.

Frank added that restaurants are allowed to structure their pricing, what is not allowed are establishments not disclosing the price changes to their customers before they pay for the items, as it hinders customers from choosing what they want to do.

Before the pandemic, restaurants handle cost fluctuations by changing the menu prices, but since people are struggling because of the current situation, changing the prices may lead to fewer customers and restaurants can't risk it.