Living Wage Surcharge

You’ve probably been asked by your guests this question “What is this additional surcharge on my receipt?”. Some restaurants started adding the Living Wage surcharge to offset the rising labor costs.

Below is the breakdown and a simple explanation of what this additional fee is.

A living wage surcharge in restaurants is an additional fee or charge added to the customer's bill, intended to help cover the costs associated with providing employees a "living wage." A living wage is typically considered to be the minimum income necessary to maintain a basic standard of living, covering essential needs such as housing, food, healthcare, and transportation.

Restaurants may implement a living wage surcharge as a response to the desire to pay their employees a higher wage, often above the minimum wage, to help them meet their living expenses. This surcharge is explicitly communicated to customers, and its purpose is to support fair compensation for restaurant staff.

Businesses need to be transparent about such surcharges, ensuring customers understand why the additional fee is being applied. Communication about the living wage surcharge may include information about the restaurant's commitment to providing fair wages and supporting the well-being of its employees. The approach to implementing living wage surcharges can vary, and businesses need to navigate these practices with transparency and sensitivity to customer expectations.