The recent popularity of service charges can be directly linked to COVID. 'The restaurant world has been forced to make many changes since COVID and the rise of inflation,' explained Jonathan Kish, CEO of Queen Street Hospitality Group in Charleston, South Carolina. Kish pointed out that 'inflation has been tough on everyone, particularly in restaurants. We work on tight margins that are less than most other businesses, and a 1% increase in cost can yield a 10% loss of profit or more.'
Service charges are nothing new for restaurants. 'I've seen this for decades under names like 'Staff Wellness Charge,' 'Administrative Fee,' 'Service Charge for Tipped Employees,' and 'Sustainability Charge,'' said hospitality consultant Jason Littrell. However, they have become more visible in recent times due to the financial pressures caused by the pandemic.
Littrell agreed and emphasized that service charges aren't instituted with a greed-based goal of gouging the restaurant's clientele. Instead, they are a mechanism to help sustain profitability in a difficult economic environment.
Collection
[
|
...
]