San Jose Restaurant Named & Shamed for sneaky ‘5% Living Wage’ tax
Recently, a photo from a San Jose restaurant went viral after the customer spotted a hidden ‘5% living wage’ tax on the bill. This add-on accounted for $5.10 as part of the total $117 bill. The restaurant was also clearly pictured in the image as Sauced BBQ which is located on Santana Row.
Interestingly, the price of the meal was already quite high for what was purchased anyway – which included a lemonade for $5.99 and a sweet potato for $7.50. Understandably then, San Jose locals weren’t happy at all with Sauced BBQ – and claimed the price for the food should have contributed more to staff wages to begin with, rather than sneakily adding in a compulsory part onto the final bill.
Speaking on social media, one user commented, “I hate this stuff. It’s so passive-aggressive. Just raise the prices to pay a living wage, you idiots.” while another quipped, “This is a bait and switch, they can keep menu prices the same but then hit you with a fee after the fact. If they raised prices 5% you may decide to dine somewhere else.”
It would be interesting to see Sauced BBQ’s stance on this – as obviously the people are not happy. Whatever way you try to look at this, it doesn’t look good. Of course, there’s nothing wrong with giving waiting staff a raise or asking for tips. However, when it’s something that is built into the receipt then you can see why it annoys people. This is particularly relevant with the current cost of living in the US, which only makes it worse given the circumstances.
That whole Santana Row is too expensive anyway . Won’t bother going there
I believe a lot of restaurants are doing that. I see it quite frequently in smaller chains in San Jose and then up in the north bay.
These do it too
Tapsilog
Shake Shack
Every restaurant in Santana Row does this it’s annoying!
Most all restaurants are doing this some calling it something else. The employees need to complain to the employers because I see this I lower the tip. We eat out a lot and it’s already too expensive.
Most like me will lower my tip by 5% if there isca mandatory charge on the bill.
Seoul Jung Korean BBQ at Dublin Gateway, CA. automatically charged 18% tips after tax on my bill. That was the last time I went there.
Adios.
It’s sneaky, disingenuous by the restaurants. This starting to occur more often. They should post or provide notice of any excess charge applied. It’s on the bill without a word said…. sneaky, dishonest establishment. I refuse to patronize after any incident like that.
I’ve never come across this yet, but you can rest assured it would be my last visit to any establishment that tries this underhanded way to suck more money from my wallet.
Statutory basis for the tax? I wouldn’t pay it. Call it a tip, if you need to, but it is not a tax.