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You may have seen it on your receipt: a "service charge."
Service charges are fees beyond the gratuity or a tip. According to a new study, restaurants are twice as likely to add on a service fee to your bill.
More restaurants are adding service charges according to a new study by Square. It found that 3.7% of food and drink transactions have added charges. The figure is up from just 1% of restaurants having added fees three years ago.
"Now with increasing labor costs, with inflation, profit margins are shrinking even further. with many businesses it means they've shrunk down to almost zero," said Ira Vouk from San Diego State University's School of Hospitality and Tourism Management.
MORE: https://www.cbs8.com/article/news/local/more-restaurants-charging-service-fees/509-043f3553-7983-4540-ab3f-b4f114e2deec