Latest / Restaurant Business with Fexingo: Food Service, Hospitality, and Independent Operators
Why Restaurant Surcharges Are Driving Customers Away in 2026
In this episode, Lucas and Luna dig into the growing backlash against restaurant surcharges—service fees, living wage fees, kitchen appreciation fees—that have become common on checks across the US in 2026. They focus on a specific case: a popular Chicago group that added a 3% 'operations fee' in January, only to reverse it by May after a 12% drop in repeat diners. They break down the psychology of surcharges versus menu price increases, the data on customer pushback, and the lesson for operators: diners hate hidden costs more than higher prices. The conversation includes the…
The skinny
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