Looks like it's acceptable and based on laws of the state. The reasons all sound reasonable to me.
Here is an explanation from a Duluth, Minnesota restaurant's website-
why a surcharge
we're passionate about cultivating a rich and stable work experience that provides fair and equitable wages and benefits for our entire team. to achieve this, we utilize a no-tipping model which adds a percentage of the total to each guest bill as a surcharge. one hundred percent of the amount generated by the surcharge goes towards employee wages.
how it supports us
the no-tipping surcharge model supports the long-term health of our team, business and community in the following ways.
promotes well-being
a surcharge allows us to eliminate the tipped vs non-tipped employee structure. by taking full responsibility for aligning compensation with job expectations and performance for all team members, we increase stability, transparency, trust, and can offer clearer paths for employee development.
creates equity
a surcharge enables us to elevate wages for everyone and achieve equity in compensation for culinary, hospitality and leadership roles.
aligns with our values
we recognize the
problematic roots of tipping and how it contributes to
present-day issues in the hospitality industry; removing tipping at our restaurants is a direct expression of our values.
frequently asked questions
where does the surcharge go?
one hundred percent of the surcharge goes to pay our team, which covers less than half of our labor expenses. the surcharge is not broken up and redistributed to other business initiatives or investments.
why don’t you offer a tip line on guest checks?
we took a big step away from tipping by changing our compensation model and offering a complete, liveable hourly wage for our entire team. adding a tip line sends mixed messages to our team and guests and its presence signals that tipping is still an expectation. by eliminating it, we’re seeking to resolve the conflict that surfaces when there is pressure to give or receive a tip.
can i still tip if i want to?
tipping at our restaurant isn’t necessary. we recognize that some guests may still want to do so because it feels like an important part of their dining experience; if you wish to tip, please write it in on your credit card slip or leave cash on the table.
why not just increase your prices?
the surcharge is specifically tied to our labor costs, not food, and we feel that placing it on top of your bill is the most transparent place to assign that expense.
what’s the reasoning behind the legal language on your menu and website?
simply put: we’re following the law. minnesota state law requires we notify guests of obligatory surcharges with clear and conspicuous notice. the language on our menu and website is taken verbatim from state law and must be printed as is. the language is present to alert you of the surcharge and to protect us against claims of hidden fees and unauthorized charges. our legal statement is as follows:
we add an 18% (takeaway) or 21% (dine-in) surcharge to each order. pursuant to Minnesota statute section 177.23, subdivision 9, this charge is not a gratuity for employee service.
are all vestalia hospitality restaurants in a no-tipping surcharge model?
yes, all of our restaurants (
pizzeria lola,
hello pizza,
young joni) follow this model. the percentage and details vary slightly based on each restaurant’s service style and needs.
if you have questions or want to know more please email us at
hello@sookiandmimi.com.
From Duluth restaurant New Scenic Cafe
Www.newsceniccafe.com
Whether taking your order, cooking your food, serving your beverage, or washing dishes, everyone on our team works hard to ensure you have a great experience. All checks include a 20% 'Fair Wage Share' service charge in support of our commitment to provide a professional living wage for all team members and operate a sustainable business. Pursuant to MN Statute Section 177.23, Subd. 9, this charge is not a gratuity for employee service.
Additional gratuities are completely optional and not expected, but should you wish to leave a tip dedicated to your server, the option to do so will remain available on the credit card receipt.
From PierB.
A 5% Kitchen Team Service Charge will be added to all food purchases. This charge is 100% re-distributed to the Kitchen staff who prepared your meal.
This charge is not a gratuity.
From TheBoatClub restaurant and bar
20% service charge may be added to groups of 7 or more guests.
We have implemented a 2% Restaurant Surcharge to our dining checks. This is not a way to increase profits, but instead a way to provide fair, equitable wages for our staff while maintaining a sustainable business model. We are seeing dramatic increases in the cost and delivery of goods, credit card processing, utilities, and all restaurant wages. We can only raise prices on our menu items so much before we must find other ways to remain in business. Therefore, we must implement this business strategy. If you have any questions or concerns, please reach out directly to us at
boatclub@boatclubrestaurant.com. Thank you, and we sincerely appreciate your business.
