To help NYC restaurant owners recover from the pandemic, the New York City Council has approved a bill which will soon allow them to add a surcharge of up to 10% to their patron’s bills (as long as this surcharge is clearly disclosed on the menu and bill).
This optional surcharge will be in effect for 90 days after indoor dining is allowed at full capacity; indoor dining is set to return to NYC on September 30, though at a maximum capacity of 25%.
The bill states that “current rules prohibit restaurants from charging any fees other than the listed price of food and drink, even if such surcharge is clearly disclosed,” and that the new bill “would help restaurants by temporarily allowing them to add a “COVID-19 Recovery Charge” of up to 10% of a customer’s total bill.”
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“New York City restaurants have been financially devastated, and it only makes matters worse that a 45-year-old regulation discriminates against only the restaurant industry by prohibiting these small businesses from having the option of using a clearly disclosed surcharge, if they so choose. The passage of the Covid-19 recovery bill will help struggling restaurants generate additional revenue to help pay for expenses like PPE for their employees, outdoor dining setups, rent, labor and other expenses to give them a fighting chance of survival. We commend the City Council for passing this important temporary legislation and urge Mayor de Blasio to sign it into law immediately.”
However, not everyone is happy with the new bill. Saru Jayaraman, President of One Fair Wage, presented the concern that this surcharge could cut into the tips waiters rely on, reports Eater.
Others fear the 10% surcharge will discourage patrons from dining out in the first place. The New York Times spoke with several NYC restaurant owners who share this concern. Nick Criscitelli, owner of Little Italy’s Da Nico Ristorante, told the publication he has no plans to incorporate the surcharge. Neither does Kalergis Dellaportas of Astoria’s Bel Aire Diner or Philippe Massoud of Flatiron’s Ilili.
The bill was however passed, and by a large margin of 46-2.
Bill sponsors include Joseph C. Borelli, Laurie A. Cumbo, Keith Powers , Karen Koslowitz, Robert E. Cornegy, Jr., Ben Kallos, Costa G. Constantinides, Margaret S. Chin, and Deborah L. Rose.
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Idiotic idea will scare customers who found other ways to eat for last 6.months.
People already reluctant to come back,and many would think to spend 10 % more.
Once the toll of Brooklyn Battery tunnel was increased,and all traffic went to Brooklyn bridge. Dying Manhattan restaurants will die faster.Regulars coming back will pay without stupid De Blasio surcharges,which will be stolen by Democratic Liberal always hungry NYC.
The restaurants that I’ve eaten at recently have already raised prices …. now another 10% … I don’t think so. I’m already overtipping and trying to keep my locals alive but this will drive me away. Realize that other businesses will do the same (raise prices and look for an allowable percentage boost) and the entire recovery effort will fall on the backs of the working class.
Why don’t they just temporarily raise their prices by 10% instead of making it in the form of a surcharge?
Yes – I think many did. This really doesn’t make sense. Oh well, it’s a free-ish economy and supply/demand will sort it out.
I’m okay with it. It should end when they bring back 50% though
I always tip $5.00 for takeout and 20% eating at my fave restaurants. I don’t mind paying more.
Let the state government foot the bill
It’s easy for the city council to spend other people’s money. Dont we pay enough taxes
In NYS? Your a sucker if you spend an extra
10%. Cuomo ruined the economy in NYC
And let all those nursing home patients die.
Cuomo is the reason NY has the lowest Covid rate in the country. Facts matter. It is the federal government who gave money to corporations like Rolls Royce and defense contractors instead of supporting small businesses.