Yahoo Finance 4 Hidden Fees You Should Know About Before You Put Down Your Credit Card for a Dinner Reservation
There’s always something a little exciting about making a dinner reservation because you’ve set aside time for an enjoyable night out, usually with a romantic partner or group of friends or family. What’s not so exciting are the hidden fees you might pile up after booking the reservation.
Learn More: 10 Expenses Most Likely To Drain Your Checking Account Each Month
Find Out: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Restaurants, like other businesses, have found new ways to charge customers for things that used to be included in the check. Part of this is in response to economic forces that have raised operating costs and forced many restaurants to boost revenue beyond simply raising prices.
Here’s a look four fees you might not know about when you make a dinner reservation.
Sponsored: Credit card debt keeping you up at night? Find out if you can reduce your debt with these 3 steps
Cancellation Fees
A growing number of restaurants now charge customers fees for making reservations and then either cancelling them or not showing up. This might not qualify as a “hidden” fee, but it’s something that could catch you off guard if you don’t read the fine print after your reservation has been confirmed.
As The New York Times recently reported, data from the reservation service Resy showed that “17% of the U.S. restaurants on the platform charged at least one cancellation fee in January, up from 13% a year earlier and 4% in January 2019.”
Many restaurants charge cancellation fees when people who made reservations never arrive. This is understandable, considering that it amounts to lost business if no other diners are around to fill the table. But many restaurants also charge fees if you don’t cancel your reservation within a certain time frame, such as 24 hours before you are scheduled to show up. Cancellation fees at certain high-end restaurants can set you back as much as $200.
The ability of restaurants to charge cancellation fees has been bolstered by more widespread use of reservation apps like OpenTable and Resy, according to The New York Times. With these apps, restaurants can require diners to enter credit card information to complete a reservation, meaning they also have the ability to charge fees on those cards.
Service Charges
This is another idea that has gained momentum in the restaurant industry — restaurants charging fees simply for serving you. According to an October 2023 article on the Restaurant Business website, service fees are often charged to cover the cost of labor. These fees usually add an additional 15% to 20% to your bill.
Healthcare Fees
As with service charges, so-called “healthcare fees” are designed to help restaurants deal with labor costs. The National Restaurant Association estimates that about 15% of operators charge such a fee, including full-service restaurants, fast food chains and family-owned establishments. Healthcare fees typically amount to 5% of your bill.
Credit Card Processing Fees
Like retail stores and other businesses, some restaurants charge more money if you pay with a credit card rather than cash. These fees are charged to cover costs imposed by the credit card companies.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 4 Hidden Fees You Should Know About Before You Put Down Your Credit Card for a Dinner Reservation
