DELRAY BEACH, Fla. — Lucas Appleton said he’s about to lose $1,000 a month after the Hampton Social, a restaurant on Atlantic Avenue in Delray Beach, is changing the way he’s paid as a server.
The change would add a 20% service charge onto customers' bills. Records WPTV’s Ethan Stein obtained show employees would only receive 18% of that charge while the restaurant kept 2% for expenses.
Appleton said the change will create a big gap for people in this industry, who live paycheck to paycheck. He also said it will become harder to pay for daily expenses.
“It’s going to change up my budget a lot,” he said. “I try to live a simple life. I’m not too crazy and I don’t go out and party very much anymore. But, just simply paying for rent, which has continued to go up... It’s drastic to lose $1,000 a month in this economy.”
Organizers said similar protests are also happening at the chain’s other locations in Orlando and Naples. Appleton said he’s also frustrated the restaurant is duping customers as if the money is going to staff.
Bill Riley, who went for dinner at the restaurant, said he was unaware the service charge didn’t go fully to the restaurant staff. He said he felt misled because he would have tipped more based on the service he received.
“I think it’s all about full disclosure,” Riley said. “Right, tell us what the deal is. It would prevent me from ever coming back here again.”
Ted Rossman, a senior industry analyst at Bankrate.com, said surcharges are becoming more common and customers don’t like surcharges. He also said these surcharges are becoming more common due to inflation.
“Surcharges are kinda a hidden way to raise prices without raising prices,” Rossman said. “There’s kinda this perception you don’t want want too much sticker shock, but if you add it as a separate line item maybe people don’t notice or maybe it’s so late in the transaction they already got their business.”
Rossman said tips are supposed to go to the workers, but once a restaurant calls it a surcharge then the business could pocket the money. He said this could lead to customers tipping less or not at all because they think the surcharge is the tip.
Records show Hampton Social Club is owned by Brad Parker in Chicago. The address matches the same address used by Parker Hospitality, who said they own the brand online. We reached out to the company this afternoon and we’re still awaiting comment.
A corporate representative was at the restaurant on Friday night. He told Stein “no comment.”
