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FTC crackdown on junk fees leaves restaurants feeling uneasy

The The Biden administration The campaign against junk fees targets the catering sector.

But as CNBC reported On Sunday (25 August) restaurateurs will try to avoid this fight.

The report is based on data from National Restaurant Associationsaid that 15% of restaurant owners added surcharges or fees to bills last year due to higher costs. And A recent report from Square found that 3.7% of restaurant transactions processed in the second quarter included a fee, more than double the rate from two years ago.

While the White House has announced a series of so-called “junk fees” such as undisclosed service fees for concert tickets, the Federal Trade Commission (FTC) is expected to publish a rule prohibiting companies from “Charging hidden and misleading fees” in autumn.

However, restaurants said their fees and surcharges would help them stay in business and pay their employees fairly, the report added.

“The challenge for restaurants is that not all fees are junk fees. … For most fees, people know what they are paying for. these are on a restaurant bill,” Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, told the station.

The report says that some customers may not be comfortable with this, citing a Denver restaurant worker who said in a public comment in response to the FTC’s proposal that while his employer claims the fees are “equitable among employees,” the restaurant Strictly speaking 30% of the proceeds remain for us.

Consumers have also had enough of “TypoThe Upward movement of the peaks “Prices must be paid at the table and for delivery, increasing the bill and putting a strain on diners’ wallets,” PYMNTS wrote earlier this month.

As our reporting on inflation perceptions shows, around three-quarters of consumers have noticed the impact of price increases at their favorite restaurants. The crisis is be seen at Table service Demand is high in both restaurants and fast-food outlets, and there are signs that delivery apps are also putting a strain on consumers’ wallets.

The PYMNTS intelligence report “Tipflation changes the spending habits of one in six consumers” found that consumers of all income groups spend less because tips drive up the cost of goods and services.

“The data showed that 29% of consumers say tipping is out of control because they seem to be universally asked to sign a certain amount of the recommended tip at the point of sale,” PYMNTS wrote. “17% of our survey respondents said they Strictly speaking Spend less on things, including food and delivery, because tips make things too expensive.”

By Jasper

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