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 matter of healthcare has become a part of the wider affordability issue Americans face today.
15 hours ago
This was perhaps one of the rarest instances in the show's long and storied history.
15 hours ago
While share prices are down, there are a lot of things that one needs to consider before investing
17 hours ago
Ray had given his twin a piece of advice, but he emphasized the importance of having fun on the show.
18 hours ago
The contestants did not let the host off the hook easily, and Harvey was not too comfortable.
1 day ago
This is not a good look for the supermarket chain as infants' lives are at stake.
1 day ago
The protestors have voiced their concerns over the companies bowing down to the President's demands.
1 day ago
Albert Edwards has warned that there are some key elements which will make the fallout worse.
1 day ago
Recent reports suggest that while Walmart's sales have grown the last quarter, Target's are down.
1 day ago
The question might have been risky but everyone on the set seemed to have a great time with it.
4 days ago
Bonus Round winners are becoming few and far in between of late on the show.
4 days ago
The supermarket chain has never opened its doors on the festive day in the last five years.
4 days ago
This item was a favorite among shoppers, who were not happy when it was taken off the shelves
4 days ago
Reports suggest that the average price of a classic Thanksgiving meal has dropped considerably.
4 days ago
The government shutdown saw employment data being withheld, which is not an ideal situation.
5 days ago
The President does however have the people's confidence in issues such as immigration.
5 days ago
It was obviously a mistake without any malicious intent, and no one was slammed.
5 days ago
There are several other items on sale but these deals are a cut above the rest.
5 days ago
Despite an increase in supply, all is not well for people who seek affordable housing.
5 days ago