GRAND RAPIDS, Mich. — Recently, talk on social media has spread about hidden fees people in West Michigan were finding on their receipts at restaurants. While these surcharges are becoming more common, many of you may be wondering where your money is exactly going when you go out to eat.
That conversation started around a fee found unexpectedly on a receipt from Uccello's, which told us it's there to offset fast-rising costs. These have become more common after the pandemic.
"That money is not going in anybody's pockets," says Richard App, Retail, Retention & Attraction Specialist for the Grand Rapids Chamber of Commerce. "It's basically trying to offset the cost that they're getting from the, from the credit card companies and the processes that they're using."
Even though the charge is meant to help keep food costs low, it can still be surprising to see if you didn't know ahead of time.
"At their best surcharge can be very transparent about why a price is going up," says Paul Isely, an economist at Grand Valley State University. "At its worst, it hides that price increase so that it looks like the prices are lower than they are when you look at the menu."
And hiding that cost can come across as dishonest to the customer.
"Then because it all looks the same, you still get that appetizer as opposed to saying, oh, it's a little more expensive," says Isely.
Uccello's tells us in a statement that they disclose their 3% fee in advance of your purchase on each of their menus, takeout counters and on their website.
The Grand Rapids Chamber says that is what it encourages all of the businesses it works with to do.
"They're not just a business in the neighborhood, they are neighbors as well," says App. "And so if there's any feeling of deceit, that's a bad thing for any business."
You can read Uccello's full statement to 13 ON YOUR SIDE here:
A 3% administration fee is being added to all checks to help offset fast-rising expenses, including fees passed on to the restaurants, rising team wages & benefits, vendor charges passed on to the business and escalating the cost of food & restaurant supplies. This fee is not a service charge or gratuity.
Our goal is to be transparent about this fee. We disclose our fee in advance of your purchase on each of our menus, takeout counters and on our website. It will also be listed separately on the bottom of all printed receipts.
►Make it easy to keep up to date with more stories like this. Download the 13 ON YOUR SIDE app now.
Have a news tip? Email news@13onyourside.com, visit our Facebook page or Twitter. Subscribe to our YouTube channel.
Watch 13 ON YOUR SIDE for free on Roku, Amazon Fire TV Stick, Apple TV and on your phone.