watch nowRestaurants are getting squeezedThis year, 15% of restaurant owners added surcharges, according to the National Restaurant Association's restaurant business conditions survey.
Unlike other small businesses, it can be hard for restaurants to absorb or pass on price increases.
Although such surcharges are unpopular among diners, Riehle expects this new business model "will become permanent."
Diners are pushing backHamei Hamedi, the owner of El Patio in Berkely, California, added a 2.4% credit card fee in 2021 after raising the prices on some menu items.
"We operate on such small margins and people expect us to eat the credit card fee too," he said.
Persons:
Hudson Riehle, Association's, Riehle, Hamedi
Organizations:
El, Visa, Mastercard
Locations:
Berkely , California