Random Thoughts – Randocity!

Rant Time: Pizza Hut “Service Fee”?

Posted in botch, business, california, food by commorancy on April 3, 2019

If you’re wondering what Pizza Hut’s “Service Fee” is, you’re not alone. I was wondering this myself on my last visit to Pizza Hut. Let’s Explore.

Service Fee

Apparently, some restaurants have found it hard to continue to do business in California. To that end, some of these restaurants have tried various tactics to raise their prices without raising their prices. I know, it doesn’t make sense to me either. But, there it is.

In that goal, some restaurants have instituted add-on fees to the bill in the form of new line items. For example, The Counter (a hamburger chain) has opted to add an “optional” service fee to the bill. This fee is to counter the higher wage costs they must pay and allow their prices to remain competitive with other chains. Except, it doesn’t keep the food costs competitive.

Pizza Hut appears to have grasped onto this slippery-slope approach with its “Service Fee” on the bill.

Confused

Even the staff taking orders don’t really know what this fee is, who is collecting it or even how to properly describe it. However, they do call it out when they are reading back the total cost of the bill.

When I placed my order, the waitperson misrepresented that it was a state of California fee… meaning, that the state of California was collecting this fee through this restaurant. As far as I know, the only mandated California fee is state sales tax. Yet, I’ve ordered from other restaurants and have paid no such “Service Fees” in addition to state mandated taxes.

No, this cashier was not only confused, she had no idea what it was even for and was clearly not trained to answer the question.

Money Collected versus what?

While I can’t speak specifically to the legality of this “fee”, it doesn’t seem all that legal to me, particularly if the cashier misrepresents the fee. As far as I know, businesses adding line items and collecting fees must provide some kind of product or service for that fee. Otherwise, it’s fraud. I can clearly tell you that my takeout order arrived bagged without plates, utensils or condiments. If that fee was to cover the takeout portion, they clearly didn’t offer any setup for my food. I also ordered pasta, which requires the use of a utensil.

It’s clear, this “Service Fee” is a price gouge attempt by Pizza Hut to rake in more money, but provide nothing in return.

High Percentage

Here’s the kicker on my bill. The “Service Fee” was actually higher than state sales tax. State tax on my order was $2.08 and Pizza Hut’s “Service Fee” was $2.10 (exactly 10% of the $20.98 subtotal).

Then, she presented me with a credit card receipt that prompted for a tip. I gave $1. That $2.10 mandated service fee covered for the rest of that tip. I usually give up to 10% on takeout, but that was already given via their “Service Fee”. In fact, Pizza Hut really swindled me out of a nearly 15% tip on a takeout order.

Last Visit

Ultimately, this will be the last time I do business with Pizza Hut in California. Not only are they now swindling customers out of fees they don’t deserve, the Pizza sauce just wasn’t tasty. I simply won’t go back to this restaurant only to get swindled for low quality Pizza.

↩︎

 

 

Advertisements
%d bloggers like this: