Consumer Trends

Consumers OK with paying fees to insure workers, poll says

A handful of restaurants that took an early stand to defray health care costs by charging guests a surcharge may not be alone for long. New research by Bankrate finds that consumers are indeed willing to foot some of the bill for employees’ health care coverage at restaurants and other businesses.

According to the survey, about half (52 percent) of consumers would approve of paying a 25 cent health-insurance surcharge at their favorite spots; 38 percent disapprove. Still 16 percent of those who disapprove of such a fee would continue to patronize the establishment. The data also shows that younger people are more willing to pitch in, with 64 percent of people ages 18–29 approving of the surcharge.

Earlier this year, news reports shined a light on several restaurant operators explicitly charging customers for existing or future health care costs. République in Los Angeles added a message to the bottom of its menu when it opened in November 2013: “A voluntary 3 percent charge will be added to each guest check to ensure benefits for our entire staff, including the kitchen. Please adjust your gratuity as necessary and thank you!” Earlier this year, Gator’s Dockside, a Florida-based chain, began charging a 1 percent ACA surcharge “instead of raising prices” on the checks at eight of its locations, to offset the additional costs it’ll incur under the Affordable Care Act.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners