--- title: Restaurant service fees don’t always check out - The Hustle description: The rise of “service fees” has diners scrambling to figure out what the heck they’re paying for. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/231000508-HS-News-Brief_2022-11-03T001730.063Z.webp --- # Restaurant service fees don’t always check out ![Sara Friedman](https://53.fs1.hubspotusercontent-na1.net/hubfs/53/assets/hubspot.com/web-team/WBZ/HubSpot%20Media/Blog%202021/Images/Nav/Optimized/TheHustle_Icon_Dark.svg) [Sara Friedman](https://hs-sbup.thehustle.co/author/sara-friedman) [Sara Friedman Twitter profile ](https://twitter.com/sarafriedmannn) Published: November 03, 2022 Updated: October 11, 2023 You might’ve noticed something you didn’t order on your last dinner bill: a “service fee.” ![Restaurant service fees don’t always check out](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/231000508-HS-News-Brief_2022-11-03T001730.063Z.webp?width=595&height=400&name=231000508-HS-News-Brief_2022-11-03T001730.063Z.webp) Not to be confused with a tip, the service fee ranges from 3% to 20% of the bill, and it’s becoming increasingly common around the country, per [*Vox*](https://www.vox.com/recode/23426907/restaurant-service-fee-charge-tipping-inflation-confusion). #### **But what exactly the fee represents…** … isn’t always clear. The fee can indicate a range of things, including: - A mandatory tip that goes directly to the server - Pay for back-of-house employees like chefs and dishwashers - Funds to cover workers’ minimum hourly wage - Money for a restaurant’s credit card fees or owners The fees also vary widely by state. In California, the fees go to the restaurants; in New York, they go to the service staff; and in Florida, they can be used for whatever the restaurant wants (feels right). #### **The tab keeps growing** In September, Americans spent [~$87B](https://www.census.gov/retail/marts/www/marts_current.pdf) on dining out, up 11.4% YoY, while the price of food at full-service restaurants was up 8.8% YoY. - Google searches for “service fee” and “service charge” have hit an all-time high with customers scrambling to make sense of their checks. **The worst part?** With all the confusion, the fee can cause diners to tip less, mistakenly thinking the money is going directly to their server. 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