Latest news with #servicefees
CBS News
6 days ago
- Business
- CBS News
Florida restaurants must disclose automatic tips and fees under new law
Restaurants will have to make clear to customers upfront when they will be hit with automatic tips or service fees, under a bill signed Monday by Gov. Ron DeSantis. While the primary focus of the bill involved the removal of non-paying guests from hotels, the measure (SB 606) also will require notifications from "public food service establishments that charge an operations charge," which is an automatic fee other than a tax. The law, which will take effect July 1, requires notices of fees on menus, websites or mobile apps where orders are placed. Addressing hidden fees in dining Many restaurants already impose automatic tips or service charges for large parties. But the issue was pushed in the Legislature after Rep. Demi Busatta, a Coral Gables Republican who grew up in the restaurant industry, told a House panel in March that she had received a restaurant bill that had a service fee and a pre-set gratuity, along with a line to include a tip. "In Miami, we've seen a growing circumstance where all the restaurants are automatically including a 20 percent gratuity, or they're calling it gratuity or service charge or service fee or tip, not just on regular sitdown meals but on take-out as well at fast-casual establishments," Busatta said at the time. For restaurants that don't provide menus or such things as table service, the bill says notices "must appear in an obvious and clearly readable manner on the menu board or on an obvious and clearly readable sign by the register where the customer pays."
CNET
22-05-2025
- Business
- CNET
Here's How Delivery Drivers Are Paid and How Much You Should Be Tipping
Tipping used to be pretty straightforward -- mostly something you did at sit-down restaurants or for the occasional delivery from a pizza joint that staffed its own drivers. But now, with the boom in gig work and on-demand convenience -- think food delivery apps, grocery drop-offs and everything in between -- figuring out how much to tip (and who actually gets what) has gotten a lot trickier. You've probably seen those extra charges -- delivery fees, service fees -- and wondered: Where does that money go? Does the driver get any of it? And if not, how much should you be tipping on top of all that? It's not as clear-cut as it used to be. There's a lot of uncertainty about tipping on delivery More than two thirds of people polled were unsure about how much to tip on delivery. Grubhub Anxiety about tipping is real. A 2023 report from Pew Research Center indicates that only about a third of people are confident about when they should tip and how much. The same report reveals that 76% tend to tip on food delivery, however. If only a third of those 76% are confident in how much to tip, assuming that their confidence isn't mired in incorrect or outdated information, only about 25% of everyone ordering food delivery is tipping appropriately or at all. I dug into some of the top food delivery services for information about who gets paid for what, whether you're ordering a meal for one person, lunch for the whole office or groceries for the week, in hopes of answering the question of how much should you actually be tipping for food delivery? Naturally, the best answer is, "it depends," but here's a look at various platforms and scenarios, with some authoritative advice on considerations to make when factoring in a tip. How are restaurant delivery drivers paid?While some restaurants have always been in the delivery game -- looking at you, pizza joints -- for many restaurants food delivery is made possible only through apps such as DoorDash, GrubHub and UberEats. Even if you call a restaurant directly for a delivery order, chances are good that your order will still get outsourced to one of those services. If you're looking to save a little money by cutting out the middleman, you're welcome to ask your favorite restaurants whether they employ their own delivery staff. A popular theme on Reddit has users offering up lists of regional or city-specific lists of what restaurants operate independent delivery. Skipping the apps and ordering directly through the restaurant often helps the drivers keep more in their pocket. Getty Images Assuming you're dealing mostly with third-party delivery services in most cases, I've consolidated some information from DoorDash, GrubHub and UberEats about what drivers are paid -- information that they all make readily available -- which rely on similar structures and procedures. Generally speaking, delivery or service fees indicated in your order go to the platform you ordered through and/or the restaurant, not the driver, although they may in part help support driver pay. Drivers are not paid a set hourly rate but typically a fee per delivery, which is variable based on factors such as distance, expected time commitment and desirability of the particular job. Incentives are often available for peak times, as well as completing a certain number of deliveries in a specified time frame. In certain markets there may be a guaranteed minimum pay for drivers who sign on during unexpectedly slow times and, occasionally, fees are built into the app to support these economics as well. Drivers are responsible for their own car-related expenses, including gas. 100% of tips added by the customer go to the driver but the driver may only see the total payout for the delivery, which doesn't delineate between the base rate and the tip, or merely indicates an expected tip. (So they don't necessarily know that you're a generous tipper but they'll definitely know if you indicated no tip, even if you plan to tip in cash upon delivery). How much should you tip for restaurant delivery? Getty Images While you may not know exactly how much your delivery driver is making, you can bet that tips are needed to push them over the minimum wage threshold. Toast, a point-of-sale resource for restaurants, suggests that third party delivery services warrant a 15% to 20% tip. Tip more than 20% during inclement weather It's encouraged to tip more if your delivery person is working during bad also have your common sense and courtesy to rely upon when setting a tip. While a $2 tip may reflect about 20% of a $9.99 dinner special for your favorite General Tso's, if you're ordering it from a place across town in the middle of a blizzard, those $2 are harder won for your driver or delivery person than if they're just zipping it from around the corner. Order size matters Consider tipping at a higher percentage when your order total is 20% on large orders starts to look like a pretty hefty bonus for the driver, consider the additional time and effort needed to ferry multiple bags or boxes from the restaurant to you and how much more time is required than for small orders for the same amount of driving. And if you're order is small, consider tipping at a higher percentage because 15% or 20% of a $15 tab is not commensurate with the effort on the part of the driver to get your food there safely. GrubHub shared some advice for tipping for food delivery and suggests 20% but nothing less than $5. Other factors to keep in mind: Drivers may be able to bundle smaller orders together for nearby deliveries, but for a large order it might require use of the entire vehicle, so an additional 3% to 5% is warranted. Inclement weather can make for a miserable or even dangerous work day. They're out there delivering so you could stay warm and dry, so an extra few dollars is a good act of gratitude. If you're living in a fifth-floor walkup, or if the elevator in your building is compromised, that's also something you should be considering tipping a little extra for. They won't be privy to that information in advance when deciding to take on the delivery. How are grocery shoppers/drivers paid? Grocery delivery works a bit differently than restaurant delivery. Instacart In some ways, grocery delivery works just like restaurant delivery but, of course, the primary difference is that your driver is also doing the work of assembling your grocery order. (Having acted as my own Instacart shopper for an examination of Instacart prices, I can attest that this is not simple.) Much like with restaurant apps, the service fee and delivery fee built into platforms such as Instacart do not go to the shopper/driver. Like the restaurant delivery services outlined above, shoppers earn a base pay that is calculated for specific deliveries, not based on time spent on the clock, and they rely upon tips to result in a wage that is worth their time. Amazon Fresh and other grocery delivery services have become a popular alternative to weekly trips to the market. Amazon According to a representative from Instacart: Shoppers are paid by the batch, which may include multiple deliveries. They are always given upfront information like store location, number of items and units, and approximate delivery distance, to decide whether they want to shop the batch. They also see the full Instacart payment offered, as well as the expected customer tip, before accepting a batch. (While you may indicate a tip at the time the order is placed, you also have the opportunity to adjust the tip after the service.) Some of the factors that make up batch pay include the number of items and units in the batch, how heavy those items are, the expected time it will take for a shopper to shop all of the items in the batch, and the estimated distance that a shopper will need to drive. Shoppers can always choose the batches that they want to shop and they're never penalized for not accepting a batch. How much should you be tipping for grocery delivery? Grocery and restaurant delivery tipping protocol is teeming with gray areas. Walmart + Restaurant deliveries benefit from association with restaurants, where people at least expect to tip when dining in person, so providing a tip for delivery isn't out of the ordinary. Grocery stores don't have the same association. You wouldn't tip your cashier when shopping in person, although your personal shopper is doing more than just bringing your prepared order to you, which makes the question of what to tip a little murkier. The base rate for grocery shopping, however, also factors in more time than that of a delivery driver. If your driver is also your shopper, 20% should be the minimum Your grocery delivery person works hard to get your order together. Instacart Amenify, a platform providing home services for residential buildings, suggests tipping between 10% and 20% for grocery delivery. The special circumstances described above -- inclement weather, challenging order or delivery logistics, or special handling -- should warrant a little extra generosity. This is again complicated somewhat by the delivery apps themselves. Not every app or market allows you to choose a tip at the time of checkout. While you can add a tip after the shop is complete in just about every platform, your shopper is working without the benefit of that knowledge. Instacart does allow the possibility of adding a tip up front, but the pre-populated tip amounts indicate tips of 2.5%, 5%, 10%, and 15%. You can enter a custom tip amount but as a built-in suggestion it doesn't err on the side of generosity.
Washington Post
21-05-2025
- Business
- Washington Post
In D.C.'s new world of eating out, when is a service fee a tip?
In 2022, D.C. voters approved Initiative 82, a ballot measure that makes restaurants take more responsibility for paying their tipped workers instead of having wait staff rely on customers' generosity. But after two years of operating under the new system, in which restaurant workers get a minimum of $10 per hour rather than the old tipped wage of about $5 an hour, there's trouble in the eateries of the capital city. Dining out in the District has become akin to flying on Spirit: The price is rarely the price. When the check comes, it's often so laden with explanations of new service fees — levied by restaurant owners trying to afford the new pay scale — that bills now rival CVS receipts in yardage.
Gizmodo
12-05-2025
- Business
- Gizmodo
Do Prices on Ticketmaster Suddenly Seem Much Higher? You're Not Alone.
For years now, the Ticketmaster experience has been defined by hitting the checkout button and seeing the price of your ticket purchase jump, sometimes nearly double, thanks to so-called 'service fees.' Finally, that is going to change. No, Ticketmaster isn't getting rid of the service charges. But it will now display the full cost of the purchase, fees included, from the very start of your transaction. In a blog post, Ticketmaster announced its so-called 'all-in pricing,' which starts Monday, May 12. 'With All In Prices, you'll be able to find tickets within your budget right away, with no surprises at checkout. That's because you'll see the cost of your ticket—including fees, before taxes—from the moment you start shopping for any Ticketmaster event in the US,' the company said. Why is Ticketmaster introducing its new pricing that transparently reflects the actual cost of tickets? To hear Ticketmaster's version of events, this is something it has wanted all along. 'We're all in on putting fans first. We've long advocated for all-in pricing laws worldwide, and support a consistent ticket-buying experience for fans,' the company claimed in a blog post. There is something quite funny about Ticketmaster turning this into some sort of new feature and positioning itself as being pro-consumer, as if someone forced it to operate with hidden fees that only appear at checkout all this time. Ticketing fees have been an issue for a long time, with Ticketmaster being one of the biggest culprits. A 2018 Government Accountability Office report found that service fees hit ticket buyers with costs that add, on average, 27% to 31% of the advertised ticket price to their final purchase. When the Biden administration started pursuing its crackdown on junk fees, Ticketmaster promised to go along with the changes—but spent more of its efforts skirting and fighting them. Per the Washington Post, the ticketing giant started showing the full purchase price on tickets only for shows at Live Nation venues, a company Ticketmaster merged with back in 2010. The company also ramped up its lobbying spending as soon as the junk fee rules started to be discussed. That doesn't exactly seem like the kind of thing a company that has always wanted price transparency would do. Instead, the explanation for Ticketmaster's 'All In Pricing,' the groundbreaking concept of showing what things cost, is much simpler. The Federal Trade Commission's 'Rule on Unfair or Deceptive Fees,' which requires businesses to 'clearly and conspicuously' display the total price with fees included from the jump, went into effect on May 12. Weird how that needed to become the law of the land for Ticketmaster to actually do the thing it claims it has long supported.
