The next time you visit your favorite restaurant, salon or dentist’s office, there might be a new fee tacked onto the bill: a Covid-19-related surcharge.
As businesses across the country have begun reopening amid the coronavirus pandemic, most have had to adapt to sanitizing and other requirements implemented to slow the spread of Covid-19. That could include masks or gloves for staff, or more frequent cleanings.
Per CreditCards.com, a hair salon in Texas is tacking on a $3 sanitation charge and a Florida dentist is charging $10 for personal protective equipment costs.
Original Pancake House locations have implemented a 15 percent service fee that’s separate from any tip, reports the Miami Herald, and San Diego taco shops have had to raise prices amid a meat shortage.
In Chicago, restaurant group Lettuce Entertain You added a 4 percent surcharge for delivery and carry-out orders from its 85 restaurants, reports the Chicago Tribune.
“These fees are a necessary step during a time when unanticipated costs have jeopardized the survival of our business,” R.J. Melman, Lettuce Entertain You president, said in a statement, per the Chicago Tribune, one of those being “the greatest increase in food pricing since 1974.”
Whether in the form of a Covid surcharge or general price increases, paying more for services or experiences could become common as businesses try to recoup some of what was lost during the spring shutdown.
At restaurants, food supply chain issues also could lead to higher prices at restaurants. The cost of more carry-out order packaging or the loss of alcohol sales have taken a toll, too.
After customers complained about a Covid surcharge at a Japanese steakhouse in Missouri, the restaurant took away the charge but said menu prices would soon increase because its suppliers have raised costs, per the Miami Herald.
Goog’s Pub & Grub in Holland, Michigan began adding a $1 Covid charge to each meal last month.
“We’re not doing this to get rich. We just want to see our staff is taken care of, make sure people are fed, make sure our lights are on,” Palmer White, the restaurant’s general manager, told Fox 17.
“I would expect to see this going forward, due to the expenses for sanitizing, PPE and supply chain costs. This is legal, even if it’s upsetting for some customers,” said Adam Itzkowitz, managing partner at Florida firm Itzkowitz Law, per the Miami Herald.
Business owners could find themselves in a tough spot if competitors haven’t taken the same steps. Itzkowitz recommended businesses be transparent about the charges and inform customers of them prior to charging a credit card, per the Miami Herald.
A recent American Express survey found 86 percent of respondents would start shopping elsewhere if a business they patronize began surcharging, per CreditCards.com. Surcharges make 7 out of 10 customers feel as though a merchant doesn’t appreciate their business, that survey found.