Information

Admin Fee Letter of Support

By NYC Hospitality Alliance

March 28, 2018

A growing group of restaurants is signing a letter urging Mayor de Blasio to allow the use of a clearly disclosed administrative fee on menus.

The NYC Hospitality Alliance has been a leading advocate, urging the city to allow restaurants the option of using an administrative fee, as explained in this OPED. A group of restaurateurs is now sending a letter to Mayor de Blasio urging him to allow them to use an administrative fee. If you'd like to support this effort, we urge you to sign on to this letter (found below). We need you to reply ASAP to this email (info@thenycalliance.org) with the following information for it to be included:

Your name

  • Name of restaurant(s)
  • Number of restaurant(s)
  • Number of employees

 

NYC RESTAURANTS NEED CITY APPROVAL FOR AN OPTIONAL SURCHARGE

Mayor de Blasio

City Hall

New York, New York 10007

 

Dear Mayor de Blasio,

WE, the full-service restaurant operators of New York City implore you to permit our establishments to include a surcharge on dining checks. This practice is allowed everywhere around the country, including throughout the rest of New York State.  Our payrolls and rents have skyrocketed, which has had a catastrophic impact on our businesses and employees. If you want to support local restaurants and staff, allow us the option of using a clearly disclosed surcharge to generate the revenue to simply survive.

The cost to run a restaurant and employ people in New York City is unbearable for too many full-service restaurants. 

  • By the end of this year, there will be nine mandated wage increases in three years:
    • The tipped minimum wage increased 100%.
    • The regular minimum wage increased 71%.
    • Salary minimum for exempt employees increased 36%. 

How are we expected to endure this expense? We cannot. 

As restaurateurs, we are suffering, and our employees’ livelihoods are being threatened too:  

  • We have laid off tipped employees including, servers, bartenders, bussers and
    runners.  
  • We have cut hours for many employees.
  • We have laid off highly compensated employees.
  • We have changed our menus to try to control kitchen payroll.
  • We have closed restaurants, which will continue closing at an increasing rate.
  • We have been forced to increase menu prices. These price increases have not and cannot come close to offsetting mandated wage increases and real estate costs.
  • We do not consider opening new full-service restaurants in NYC.

We know these wage increases were not intended to have these consequences, but full-service restaurants in NYC are now closing in unprecedented numbers, leaving vacant storefronts and limited service businesses that create fewer jobs and do not offer the renowned dining experiences that help draw millions of visitors to our city.

We have been waiting in good faith, for two years, for our city to allow us to use a clearly disclosed surcharge. During that time our businesses have been further damaged. We need the option to use a clearly disclosed surcharge, and we need it now!

Mr. Mayor, we urge you to listen to the voices of your local restaurant community.

We need our city’s support now.

Thank you for your immediate action.

 


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