{"id":34705,"date":"2020-06-04T10:33:46","date_gmt":"2020-06-04T14:33:46","guid":{"rendered":"https:\/\/www.arffinancial.com\/development\/?p=34705"},"modified":"2021-02-17T00:21:36","modified_gmt":"2021-02-17T05:21:36","slug":"should-your-restaurant-add-a-covid-19-surcharge","status":"publish","type":"post","link":"https:\/\/www.arffinancial.com\/development\/should-your-restaurant-add-a-covid-19-surcharge\/","title":{"rendered":"Should Your Restaurant Add a COVID-19 Surcharge?"},"content":{"rendered":"

\"Should<\/strong>As restaurants start to reopen and ramp-up across the U.S., many are beginning to experience an increase in expenses compared to pre-COVID-19 times. Costs like personal protective equipment (PPE) for their staff, higher foods costs<\/a> due to supply chain breakdowns, disposable products like menus, utensils, and condiments, and potentially higher wages to encourage workers to return to work, are not daily costs that were budgeted for and they are now eating into profits. Not to mention any new, one-time, expenses like bathroom renovations <\/a>to become touchless, updated entrances and exits to assist with social distancing, additional outdoor seating, the list goes on. So, how does a restaurant combat these new costs? Some have resorted to adding a COVID-19 surcharge. Let\u2019s dive into this a little further to see if it is the right move for your restaurant.<\/p>\n

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How Will Your Customer React?<\/strong><\/p>\n

The first thing you should ask yourself before implementing a COVID-19 surcharge at your restaurant is, how will your customers react? Do you personally know your regulars and know that they will be okay with adding 5% to their bill to help you offset this hopefully temporary new costs? Or, will your customers take this negatively and cause more harm than good? If you\u2019re considering adding a surcharge, poll your customers on social media or through your email marketing channel to see what they think. If a majority says they\u2019re fine with it, give it a try. If you get a lot of negative responses, this may not the be route your restaurant needs to take.<\/p>\n

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Disclose The Surcharge Appropriately <\/strong><\/p>\n

If you start to add a COVID-19 surcharge, it will be imperative that you make sure your customers are aware of this additional fee prior to ordering. Signs should be placed on the doors, add a note to all pages on the menu, and have your staff trained to personally disclaim this information to every new guest. Leave no stone unturned that would allow someone to receive their bill and be surprised to see the surcharge listed on it. Don\u2019t forget about delivery and takeout customers as well. They won\u2019t be privy to this information unless told when ordering, whether it\u2019s over the phone or online. Make sure your website has this information about the charge front and center and clearly outlines what it will add to their bill and why. Being as transparent as possible will go a long way to keep your customers happy and your staff less worried about having to deal with irate customers.<\/p>\n

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Other Options<\/strong><\/p>\n

If you polled your customers and they gave a big, \u201cNO\u201d to this idea or you gave it a try and things went south fast, adding a COVID-19 surcharge may not be the route your restaurant needs to take to offset these new costs. Instead, you may need to find other ways to save money.<\/p>\n