ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Man Alleges Chipotle Adds ‘Service Charge’ to Orders, Stirs Debate on Pricing Transparency

The social media user revealed that his wife's office placed a sizable order at Chipotle, only to be surprised by the inclusion of a service charge.
PUBLISHED APR 12, 2024
Cover Image Source: Chipotle faces backlash over addition of service charge | TikTok | @erikfnyc
Cover Image Source: Chipotle faces backlash over addition of service charge | TikTok | @erikfnyc

A recent TikTok video has sparked controversy after alleging that fast-food chain Chipotle has been adding a "service charge" to orders, prompting concerns about pricing transparency and employee compensation. TikTok user Erik (@erikfnyc) shared a video detailing his wife's experience with the unexpected charge, which has since garnered over 1.7 million views, igniting discussions about the implications of such fees on consumers and workers alike.

TikTok | @erikfnyc
TikTok | @erikfnyc

In the video, Erik expresses disbelief at the emergence of a "service charge" on his wife's Chipotle order, questioning the rationale behind the additional fee. He suggests that the charge may be intended to fund employee salaries, remarking, "We’re just paying for the employees’ salaries now." Erik's suspicions are fueled by reports of fast-food workers in California earning $20 per hour, leading him to speculate that similar fees may be imposed in other locations to cover rising labor costs.

TikTok | @erikfnyc
TikTok | @erikfnyc

Speaking to Daily Dot, Erik elaborated on the incident, revealing that his wife's office placed a sizable order at Chipotle, only to be surprised by the inclusion of a service charge. Seeking clarification, her boss contacted the restaurant where they were informed that the fee was designated for the workers in the back. The controversy surrounding Chipotle's alleged service charge reflects broader trends within the fast-food industry. According to the National Restaurant Association's annual State of the Industry Report, nearly 15% of fast-food establishments have implemented food service surcharges, mirroring similar practices in fine dining establishments. The report indicates that a significant majority of these establishments intend to maintain these fees for an extended period, signaling a potential shift in pricing strategies across the industry.

TikTok | @erikfnyc
TikTok | @erikfnyc

Despite occasional viral complaints about Chipotle's pricing on platforms like TikTok, consumer sentiment regarding the chain's pricing appears to be evolving. Many consumers now perceive the chain's prices as reflective of the value provided, suggesting a growing acceptance of the brand's pricing strategy. While some consumers express frustration over the perceived lack of transparency in pricing, others acknowledge the need for fair compensation for restaurant workers. @Mary D expressed frustration, declaring "No more tipping." @Augusto Romero sought clarification, asking if paying the service charge meant no more tips. @Joe silveo suggested avoiding the issue altogether by cooking at home. @AndymionNeo criticized the company's lack of accountability, stating, "So the company doesn’t want to be accountable for nothing not even the wage of the employees." @Theperfectstorm echoed this sentiment, stating, "I’ve always hated tipping. Like don’t you already get paid?"

TikTok | @erikfnyc
TikTok | @erikfnyc

@PocarDeAses proposed rejecting the service charge, asking, "Can we reject that service charge and just deduct that fee when paying?" @TheLightHouse added confirmation to this, saying, "Yes you can, just tell them you’re not paying the service fee and you want a new bill. They will fix it and bring a new bill." @Allen succinctly advised, "Eat at home."

Meanwhile, @workoutaddict2021 criticized the service charge as a means for the company to shirk responsibility. @josemoran4573 echoed the sentiment, urging others to "just make food at home." @Steven suggested alternative dining options, advocating for local sandwich shops or Chinese joints. @Demi9000 suspected profit motives behind the service charge, suggesting the owners were offsetting losses by "screwing over the customers."  @Juan_2_3 advised, "Eat at home. We have choices." Meanwhile, @Em stated, "I kindly inform the server that I am not paying the service charge." Additionally, @Amalia_mariea expressed frustration, announcing, "I quit eating out completely. I’m done playing their games."

For more such content, you can follow @erikfnyc on TikTok.

MORE ON MARKET REALIST
The contestant was momentarily disappointed, but she was happy to have won more than $17,000.
14 hours ago
Those interested can avail the Walmart Plus membership for $49 instead of the usual $98 for a year.
15 hours ago
No one saw this coming, but it doesn't mean the product won't return to the shelves again.
15 hours ago
Several businesses are offering free meals to current and former military personnel on November 11.
19 hours ago
Emmer believed that the President had inherited a broken economy from the previous administration.
1 day ago
With the holiday season right around the corner, the company wants to bring in big revenue.
1 day ago
The retailer has some great discounts in store for the holiday season this year.
1 day ago
It's not the best look for ByHeart, the company producing and selling the baby formula.
1 day ago
She had won more than $30,000 leading up to the Bonus Round, which was a great feat.
4 days ago
The bird's stock in the US is the lowest of the last 40 years thanks to a deadly avian flu.
4 days ago
The company claimed that there were concerns about physical safety with the bottles.
4 days ago
Currently, arguments about the legality of the President's tariffs are being made and heard.
4 days ago
She composed herself just well enough to be able to thank host Drew Carey after her big win.
4 days ago
The contestant was flexing his muscles and the host might have taken offence at that.
4 days ago
A lot of people would have wanted to swat the creature had it sat on their bodies out of fear.
4 days ago
The 1979 contestant had won a car during her time on the show, but her student failed to do so.
4 days ago
The company has issued an apology in a statement for the inconvenience caused.
5 days ago
Michael Burry made a return to X with a cryptic message warning against the 'AI Bubble'.
5 days ago
The host had no idea what the contestant was saying until he cleared it up.
5 days ago
Ryan Seacrest was surprised that the contestant was able to get it right so quick.
6 days ago