Dining out? Expect labor surcharges on your next bill


In this July 18, 2014 photo, Dawn Heigl, a waitress at The Harp, serves food at the restaurant in Wilmington, N.C. The Commerce Department reports how much U.S. consumers spent and earned in June on Friday, Aug. 1, 2014. (AP Photo/The Star-News, Matt Born)

COLORADO SPRINGS, Colo. — The restaurant industry is handling higher labor costs by adding them to your bill.

Instead of raising menu prices to cover the higher cost of wages, some eateries are now tacking on labor surcharges.

The Wall Street Journal reports that chain restaurants in states like Colorado, Arizona, California and New York are adding surcharges of three to four percent to your bill.

Industry analysts expect the practice to become widespread as more cities and states increase minimum wages.

Many restaurant owners say they have added surcharges, because jacking up menu prices can turn off customers who are sensitive to how much certain foods should cost.

What are your thoughts on a labor surcharge being added to your next dining bill? Share with us in the comments below.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Latest Local Stories

More Local