Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So… We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn’t a grammatical horror to read]
Thank you for posting this you are correct the fee goes to the restaurant and they use the money to pay the back of house. In my experience it is just so the restaurant can provide the same wages as before to back of house but not out of the restaurants pocket. This tends to result in people tipping less so the server directly makes less money. There is also often no accounting/oversight into how the restaurant uses the fee. If I recall correctly the city of Los Angeles is looking into the legality of how these fees are presented to the customer and the fact there is no oversight.