How Initiative 82 is playing out so far:
“Everything is going to be looked at—some pricing, some service charge, some cutting back on the hours.”
Service fees started cropping up during the pandemic—some in anticipation of law changes. The Van Ness bakeryadded a 9.5-percent service charge shortly after the election and is using the funds to boost base wages of everyone from cooks to cashiers even before the initiative goes into effect. “Somewhere in this realm is the future,” says general manager Scott Auslander.
As much as diners might complain about the bill add-ons, restaurateurs believe service fees are less of a turnoff than price hikes. “It’s an easier pill to swallow,” says Adam Stein, chef and owner of thein NoMa. He believes the upfront sticker shock of a pricier menu would be “more jarring than someone going, ‘Okay, I don’t have to worry about the tip—it’s already included.’ ” That’s not to say tipping is on the way out.
Restaurateurs could also decrease the number of staffers they employ due to the added wage costs, perhaps even replacing human servers with
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