Though restaurants have long had a reputation for marking up prices on the menu, those surcharges have not been enough to keep many restaurants in business. The “COVID-19 Recovery Charge” bill will temporarily allow restaurants to add a charge of up to 10% of a customer’s total bill, ABC7 NY reported.
“Now that they are stretched to the max, New York’s restaurants can now join every other city in the country and transparently ask their customers to pay into their recovery, without having to hide costs into their pricing,” said Councilman Joe Borelli, the bill’s prime sponsor, in his argument for the bill. “This is an option the restaurant industry long sought to deal with rising costs.” Foodservice establishments must clearly disclose the surcharge on both its menu and on the customer’s bill, and can be enacted until 90 days after full indoor dining can resume.
Reception of the bill has been mixed, with some restaurateurs feeling that an optional surcharge is the wrong way to help get their businesses back on their feet.,Workers’ rights advocate Saru Jayaraman, president of One Fair Wage, told the NY Daily News that she was concerned “a surcharge without a minimum wage will cut into workers’ tips.”
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