(KNSI) — To keep up with rising inflation and food prices, more restaurants are adding surcharges to guest checks, which restaurant industry expert Emily Knight says isn’t something she would recommend.
“We would rather see a price increase and moving to dynamic pricing where it can fluctuate more than adding on a standalone surcharge.”
Diners say they feel blindsided by surcharges they didn’t anticipate or are too vague to understand. Knight adds that consumers say they would rather pay more for a food item than see a surcharge at the bottom of their bill.
“Consumers tend to respond better to seeing an extra 50 cents on a burrito versus paying an extra dollar arbitrarily.”
According to the latest data from the Consumer Price Index, food prices increased 10.1% from May 2021 to May 2022. Food at home costs went up 11.9%. Food away from home went up 7.4%. The U.S. inflation rate is 8.6%, the most significant annual increase since December of 1981.
___
Copyright 2022 Leighton Enterprises, Inc. All rights reserved. This material may not be broadcast, published, redistributed, or rewritten, in any way without consent.
FOLLOW US FOR INSTANT UPDATES!
FOLLOW US FOR INSTANT UPDATES!