OpenTable’s Post

California Governor Newsom signed an exemption for restaurants to the so-called Junk Fees legislation. Restaurants now have carte blanche to charge whatever hidden fees they want to. We know consumers hate these fees-they value transparency, which is exactly why the California legislature banned hidden fees in every other industry. What a great opportunity for a restuarant to build into its brand equity that they are the "no-fees" restaurant. The price on the menu is the price you pay, plus tax and tip, of course. If I owned a restaurant and felt that I couldn't support the employees' benefits or whatever the intention of the fees I charge, I'd wrap it into the menu price. Consumers don't like higher prices, of course, but I believe many customers would be willing to pay an extra $1 or even $2 on an item when they know that there are no extra fees, while every other restaurant likely has hidden fees. Every research study I've seen says consumers hate these fees and some won't even visit a restaurant again if they got nailed with a hidden fee. What an opportunity for smart restaurateurs.

Several New York State lawmakers want to require restaurants at rest stops along the state’s 500-mile Thruway to stay open seven days a week to serve drivers, including Chick-fil-A, which famously closes on Sundays. “The [traveling] public and commercial trucking industry rely on these service areas to rest, refuel and to purchase food and beverages,” the bill says. The bill mentions Chick-fil-A’s policy, and says “while there is nothing objectionable about a fast food restaurant closing on a particular day of the week, service areas dedicated to travelers is an inappropriate location for such a restaurant.” The bill does not apply to all Chick-fil-A locations in New York, or even impact the seven that are currently operating along the state thruway. While Chick-fil-A’s rest stop locations may have been the impetus, the bill instead would instead affect all future contracts for food concessions at transportation facilities owned by the state and the Port Authority of New York and New Jersey. But it has become a cultural flashpoint. Some Republicans have seized on it to claim Democrats are targeting Chick-fil-A, a brand long associated with Christian conservatism.

How will California Junk Fee" ban impact restaurants? It's official, starting July 1st, restaurants and other retail businesses will have to fold any fees into their menu prices. Inflation, no more ?! 😆 Read more about the impact this new mandate might have on the restaurant and food landscape in the Golden State. ⬇ Do you think food pop-ups can be an alternate vehicle that bring value and transform the changing restaurant landscape? We believe so! 🍴 🚛 Stay tuned for more info on how the pop-up scene can be leveraged to expand TAM, lower overhead costs, experiment different markets, boost brand, test new menu concepts and more!! https://lnkd.in/eCyNbBwy #junkfeesban #california #restaurants #menuprices #inflation #bringthefoodtothestreet #foodpopup

Statement from Sam Toia, President & CEO of the Illinois Restaurant Association, on The Federal Trade Commission Proposing a Ban on Service Charges. "The Federal Trade Commission’s (FTC) proposed rule could force restaurant operators of all sizes to rewrite compensation models, increase menu prices, and overhaul established business practices. The FTC admits it would cost restaurants at least $3.5 billion to comply with their plan. The FTC would force restaurant operators to: 1. Remove any separate fees or surcharges—including service fees and large group surcharges. 2. Overhaul menus so that the listed price is the total price a customer must pay. 3. Eliminate the use of surcharges for dynamic costs such as credit card processing or delivery fees. It would also create a new wave of litigation and federal fines for noncompliance. The Illinois Restaurant Association is working with the National Restaurant Association to resist this regulatory overreach, but the FTC needs to hear from operators like you today! Public comment will only be open for a short period of time. Voice your opinion NOW! Click here to add your name opposing the FTC’s rules - https://ow.ly/UYhm50QgWJs Click here to view a fact sheet - https://ow.ly/hnnm50QgWJm Click here to register for the National Restaurant Association's upcoming webinar - https://ow.ly/oeyl50QgWJk Thank you for helping restaurants fight this proposal. We will keep you updated with any developments."

SB478 law is making many of us in the California restaurant industry crazy with its ambiguity. If this law is passed, and surcharges and service charges are no longer allowed, what considerations are you looking at making? I am hearing more and more from restaurant clients on how they will be taking surcharges and adding that % to their menu pricing. Would love to hear what other considerations are being thought about.

California "Junk Fee" Ban SB-478 Update! SB-478 goes into effect July 1st. Clarification regarding restaurant implementation has finally been given. Restaurants, bars, grocery stores, and grocery delivery services will not have to list mandatory fees in the prices for individual items. Fees need only be displayed on advertisements, menus, and signs.  This means that restaurants charging mandatory gratuity will not need to list the cost of the tip with each individual menu item. 3rd party delivery service will still be required to obey the fee disclosure rule as outlined. https://lnkd.in/eekB5A9G

Attention California restaurateurs! A recent change in legislation (Senate Bill 478) has banned mandatory service charges effective July 1, 2024. While this promotes price transparency, it also necessitates adjustments in your restaurant's pricing strategy to ensure financial stability and fair employee compensation. This new legislation presents an opportunity to build a more transparent and sustainable pricing model for your California restaurant. JUICER outlined what you need to know. Read more here: https://lnkd.in/eGqEcG5F #pricing #dynamicpricing #data #california #servicecharge #restaurants

Ever imagined launching your own eatery? 🍽️ Dive into this piece detailing the common licensing needs to kickstart your journey! The maze of permits might seem daunting, but CT is here to guide you through, making your culinary aspirations come true. https://gag.gl/QQvqb6 #businesslicense #compliance #business #restaurants #thebear