California restaurant prices to surge under controversial new law - here's what ... trends now
Starting July 1, California restaurants will not be allowed to add a surcharge to their menu items or services, which experts say will lead to soaring menu prices in San Francisco.
The ban, confirmed by the California Office of the Attorney General on Wednesday, has sent shockwaves through the already suffering restaurant industry.
'Ending the ability for restaurants to use service charges (even if clearly and legibly listed on their menu) will have a very negative impact on the survival of this still struggling industry,' the Golden Gate Restaurant Association told the San Francisco Chronicle.
'Diners will not pay less, instead they will see significant menu price increases, which we believe will further cause them to pull back on dining out. … Not only will restaurants struggle, but workers will lose hours and jobs.'
While consumers expressed their approval of the state's decision to ban hidden fees and encourage price transparency, restaurant owners in the Bay are worried the price increase will annoy customers who are already cutting back on dining out due to rising costs.
Zuni Cafe diners (pictured), most known for their chicken for two dinner special, stirred up controversy in 2021 when they stopped tips and instead charged a 20% 'fair wage' fee that is split between all the employees.
If Zuni Cafe folds their 5% health mandate charge and 20% fair wage charge in the cost of the chicken for two (pictured) , which is currently priced at $75, the price would rise to $94.50
The San Francisco Chronicle looked at three of the city's most popular dishes and how the restaurants will adjust their prices in accordance to the
