Chicago restaurant groups stand by surcharges; what to look for as some say they should be removed

CHICAGO (WLS) -- The I-Team is investigating those annoying restaurant fees, which you may not notice on your check.

Consumer investigators Jason Knowles and Samantha Chatman have been dining out, and collecting receipts for months.

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They are fees which can be anywhere from 3 to 4 percent of a restaurant bill. It may not sound like a lot, but, if your check is $200, that could be an additional $8.

That's a cost consumers may not want to deal with as inflation persists.

Restaurants say you can usually get these fees taken off the check, if you ask. But consumer advocates say you shouldn't have to do that.

Many restaurant groups stand by these fees.

Here's what to look out for.

The I-Team spent two months dining, and found surcharge after surcharge on dozens of Chicago-area restaurant bills. The charges added up.

Depending on the bill, the 3-4 percent fees ranged from about $0.50 to $10.

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At many restaurants, the surcharge started during COVID-19. Restaurants said that it helped cover the rising costs.

Now, more than a year and a half after the pandemic officially ended, dozens of restaurants continue to tack on the extra fees.

"I think that's sneaky," Chloe Ingraham said.

Customers said they're fed up with the charges, and that the rules which state you can take the charge off the bill should be clearer.

"If they can take it off, then you should let them know that," Ingraham said.

Some bills do remind consumers that it's a charge to offset operating costs and that you can request it to be removed.

"I would never ask them to do it. I would feel bad," Julia Conversa said.

"It's a lot on the bill," Nat Selma said.

Other customers say that cost should be more up front, or in the menu items.

"I think it's good business if you incorporate the 3-4 percent extra in your restaurant prices," Selma Penseal said.

Kevin Brasler is the executive editor of Consumers' Checkbook, a nonprofit organization that empowers consumers to save money. He said many restaurants are adding surcharges to avoid raising their menu prices.

"Overall consumers are pretty fed up," he said. "They're trying to avoid not being seen as expensive. But the problem is what we're really paying are these inflated prices."

The Illinois Restaurant Association declined an on-camera interview, but told the I-team, "Restaurants have faced years of rising food prices, inflation, and rent in addition to labor shortages and significant increases to the cost of doing business in Chicago. Most are struggling to stay afloat and keep workers employed. Restaurants should be able to determine their pricing in a way that is transparent and fair to protect the viability of their business, the livelihoods of their workers, and the longevity of the industry in this city."

"It should absolutely be in the menu price. That's the fairest way to do this," attorney Paul Castiglione said.

Castiglione and The Khowaja Law Firm have filed a class-action lawsuit alleging consumer fraud.

It's against one of Chicago's largest restaurant groups, Lettuce Entertain You. According to the complaint filed in January of 2023, customers have not been properly notified of the surcharges.

"It absolutely adds up. It doesn't take much for it to kind of snowball into a much larger amount. And so it is important, and the principle is important, that you should pay what you think you're paying for an item," Castiglione said.

Lettuce Entertain You filed an answer to the complaint, denying all allegations of wrongdoing.

The restaurant group responded to the I-Team, saying, "We do not comment on pending litigation, but we believe this case is without merit. We advise our guests of this surcharge in advance and upon request, the charge will be removed."

But consumer advocates say customers shouldn't be put in that awkward position.

"They couch the terminology behind why they're charging these fees, to extend the health benefits for our workers or increase their wages, and then it makes us feel guilty," Brasler said.

Whether they're fees you're against or don't mind paying, it appears these fees aren't going anywhere anytime soon.

There was a proposed bill that that would ban junk fees in Illinois. It passed in the Illinois House, but did not make it through the Senate.

As for that lawsuit, the law firm that filed said it could be possible to add more restaurant groups to the class action. It all started with one consumer noticing the fee on his bill.