SAN FRANCISCO Restaurateurs here are scheduled to meet this week to discuss the possible citywide adoption of a 5 percent service charge to help offset increasing labor costs.
Blaming the burdens of a higher minimum wage and potential health-care mandates, some restaurants have already instituted a service charge as a more palatable alternative to raising menu prices, according to the Golden Gate Restaurant Association. Industry representatives are scheduled to meet Thursday to discuss a coordinated approach citywide. Proponents assert that the simultaneous adoption of a standardized charge would lessen the possibility of resistance from patrons.
Service charge proposals have reportedly ranged from 3 percent to 18 percent, with 5 percent the most common option. Opponents of the plan, however, say consumers will not differentiate between paying extra in the form of a service charge and spending more because of a price hike.
