An image of a restaurant bill with a 4% service charge added to cover “health insurance for staff” recently went viral on X, formally known as Twitter. The situation has garnered backlash and raised questions about what is and isn’t fair to put on customers.
Extra Fees Are Nothing New
These types of surcharges aren’t new and they’re probably not going to go away any time soon. Moreover, according to a recent survey by the American Restaurant Association, 15% of restaurant operators plan on adding surcharges and fees to combat rising food, supply, and labor costs.
The Owner Responded
In response to the backlash, Zach Pollack – the owner of the LA-based restaurant in question, posted to Instagram. The businessman claimed his restaurant had been “singled out” and that hundreds of other LA restaurants have similar surcharges as a result of the Affordable Care Act.
The Affordable Care Act
The Affordable Care Act states that small businesses with 50 or more full-time employees are required to offer minimum essential health insurance coverage to workers. Unfortunately, that coverage doesn’t come cheap. Households in the United States spend, on average, 8.1% of their income on healthcare.
It’s Hardly a Surprise
It’s no secret that healthcare costs are hugely inflated in the US. In 2018, the average cost of insulin in the States was $98.70. In the UK, it was $7.52. Moreover, their National Health Service (NHS) covered – and still covers – that cost so, in reality, it was $0. There’s an argument to be made that they pay for it with their taxes, but the tax which pays for the NHS costs the average Brit considerably less than health insurance costs the average American. Since healthcare is so expensive stateside, it’s no surprise that businesses are trying to get customers to cover the costs – but that doesn’t make it right.
The Internet Was Divided
The story divided the internet, with many taking the restaurant’s side, several taking the customer’s, and a fair few sitting in the middle. One person wrote: “Easy enough to manage. If a surcharge is added to pay for anything, it should come directly off the tip for the server. I typically pay a 20% tip so, in this case, I would adjust the tip to 16%. Produce a menu with actual, all-in pricing and stop adding line items that confuse customers and allow businesses to fleece them.”
Others Disagreed
Not everyone agreed with the aforementioned individual and many found their comment to be inconsiderate. One person said: “Just add it to the plate cost and don’t tell the customer because people clearly care more about a $5 burger than someone being able to have healthcare. Joke of a comment.”
Others Were Emotional
The situation evoked an emotional response from some. One person wrote: “Seriously? Spoiled rotten, entitled Americans would balk at the notion of helping businesses pay for healthcare for their employees. We’ve become a country full of selfish, self-absorbed [idiots] that can’t handle the success and well-being of others. It seems that all we are here for is figuring out how to beat down everyone around us. Courtesy and empathy no longer exist, thanks to [Trump]. He has stuck the knife in America’s back and twisted it. We are rapidly becoming irrelevant.”
Other Discussed America’s Healthcare Problem
Plenty of commenters declined to debate the specific issue and, instead, focused on the broader problem. “If our country would do what other civilized countries do and provide free healthcare, this would not be an issue,” one person wrote. “Here in America, the military industrial complex gets all the money to do harm. Couldn’t care less about [the health of citizens],” another replied.
The Discussion Moved to Tipping Culture
The debate quickly moved onto tipping culture. “Tips should be voluntary, the employer should cover health insurance, and staff should get paid at a rate that equals at least minimum wage. Tips are a reward for good service,” one person wrote. “The employer should not have to cover healthcare at all. Work somewhere else if you don’t like it,” another hit back.
Others Embarrassed Themselves
Some online commenters made sure to showcase their ignorance. “This is socialism! It’s creeping in and we need to rise up right now. Absolutely terrifying,” one person wrote. “You don’t know what you’re talking about. Socialism is when workers own the means of production. If this was socialism, there would be no owner and the workers would walk away with a cut of the profits rather than an hourly wage.”
Others Questioned the Decision
Some online commenters questioned the decision to add a surcharge. One person wrote: “I’m all for employers covering health insurance. If they have to charge us more to be able to do that, fine. But why not just raise the price by 4%? Why add a surcharge? It’s like they wanted people to get mad.”
International Commenters Had a Blast
International commenters enjoyed the show put on by Americans. “America, never change. Your entitlement, hypocrisy, and pure cringey-ness is utterly hilarious and you provide world-class entertainment to people everywhere every time you get outraged by something that wouldn’t even make people blink elsewhere.”
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