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Restaurants Caught in Squeeze Add Inflation Fees Amid Razor Thin Margins
As restaurants across the country feel the squeeze from rising inflation, a tight labor market, and minimum wage increases on an industry with notoriously thin margins, owners are passing along the pain in the form of various fees tacked onto the tab, according to the Wall Street Journal.
According to point-of-sale software developer Lightspeed, fee revenue has nearly doubled from April 2021 to April 2022, based on a sample of 6,000 restaurants on their platform. Restaurants adding service fees increased by 36.4% over the same period.
"As the costs of doing business have changed, we’ve seen more merchants leverage this tactic," said exec Peter Dougherty.
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