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    California's restaurant surcharges are here to stay

    By Kate MurphyMegan Rose Dickey,

    19 days ago

    Restaurant surcharges aren't leaving menus in California.

    Why it matters: Dining out has become more expensive for customers and restaurant owners, fueling debates about legislation aimed at eliminating vague fees tacked onto diners' bills.


    Driving the news: Gov. Gavin Newsom signed emergency legislation Saturday allowing restaurants and bars to charge additional fees that are "clearly and conspicuously" explained on menus and other displays.

    • It essentially exempts eateries from the law banning "junk fees" at businesses — including ticket vendors, delivery apps and hotels — that went into effect Monday.

    Threat level: Restaurant owners have argued banning such surcharges would result in employee pay cuts and higher menu prices for diners.

    • But many diners oppose such service charges. A recent San Francisco Chronicle survey found more than 81% of 1,000 respondents believe restaurant surcharges should be illegal.

    The bottom line: Diners can still expect to see service charges on their checks, but they shouldn't be a surprise.

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