Once I realized that the cruisery was sneaking in that credit card processing fee I stopped going. At least some restaurants let you know up front.
Carp. Local
If a business wants to avoid talking about merchant fees, it looks better to raise prices by 1.309% but offer a 3% discount for cash.
Guess Industrial was not pleased with their success? Why invite in a business in then jack their rent? Hope they get a new location quick!
Everyone read this……
As a business owner this is a no brainer. Here’s why:
Effective several years ago the state made this legal to bake in credit card processing fees to the overall final bill. This practice is becoming widely common places, especially in the restaurant space.
What’s happening is the customer uses a credit card to take on debt, to pay with debt the business has to pay a 3% on average processing charge to the credit card companies. So you can say it’s the cost of business, but I disagree. Let’s say the business makes 1 million a year, that’s 30k in fees they have to pay because the customers decide to take on debt. Why should the businesses have to pay that. It’s an underlying expense the business is paying because the customer is paying with debt, so it’s a penalty to the business.
Due to the increase in inflation, increase in employee wages and the increase in overall operating costs all is costing more for businesses keep the doors open.
The business has 3 options.
Option 1 - Eat the fee (30k less in profit)
Option 2 - Raise the menu prices across the board, thus everyone pays more to offset the inflationary rise in expenses.
Option 3 - Keep the menu prices the same to keep customers and charge a fee to the customers who want to use debt as a form of payment at the expense of the business. Reducing the businesses overall operating cost allowing them to keep the doors open.
Notice all the places closed on state street, we’re going to be having a lot more in the future. A lot of people in this town are hanging on by a string. So you can complain all you want about the 3% or accept it so the places you enjoy can stay open. Most restaurants on average have very small margins in profit, so this 3% fee is a big deal to them.
Thank you for understanding, we hope you do pay us a visit!
Thank you!
Thank you for the support, we appreciate you!
Gas stations have had separate cash and credit card prices for ages. Do you only go to the ones that don't?
My hair salon has a separate credit card machine for tips because the owner doesn't want to pay the CC fee on a tip that is not part of their revenue stream.
I agree with CK. If you don't like the fee, pay cash. Bossie's has told you about it upfront so there should be no sticker shock when the bill arrives.
Fellow local food business owner here. Echoing Jeannie's sentiments. Restaurants have been a long time broken model in a broken industry. Things that would never exist in other industries are expected- (Why can you dine as long as you want? Why are takeout containers free? Why do people expect modifications to be free? Dare I say, why is water free?). I get that these are all things people have been conditioned to know, and people don't like change that costs them more, but behind the curtain, these are all math problems that owners are trying to make work. They are the same reasons (of MANY) that the model isn't healthy. I predict that the industry will keep moving in this direction and hopefully the vitriol that restaurants are now receiving will be better understood and redirected to those way more deserving.
#2) 409 State Street
#7. The Unity Shoppe corner Chapala & Sola?
My service business (not a restaurant) accepts credit cards to the tune of about $50k in CC processing fees annually. I would never think of adding a CC processing fee to my customer's invoice. It's a cost of doing business that I pass it along to my customers - so instead of charging them $480, I charge $495 or whatever. I've never had any customers balk at my pricing structure, including periodic price increases to keep up with inflation. Anytime I've been to a restaurant in town that charges this fee, I have not returned (Via Maesta most recently).
Credit card fees are nothing new for restaurants and consumers. What's new is the rising costs of goods for restaurants, including labor. Restaurants who add the fee usually feel that their customers will complain about price increases, but I think that fear is usually unfounded. Consumers are smart and realize that a glass of wine now costs $16 instead of $12 and a steak is going to cost $48 instead of $42 a few years ago because of the economic realities. Unfortunately, restaurants do not give their customers enough credit and try to keep their pricing low and then tack on the fees.
Restaurants: Heed the advice of the masses and raise your prices .50 per item or whatever instead of adding CC fees. People don't like fee's and you are shooting yourself in the foot and putting yourself at a competitive disadvantage against restaurants who are simply building the cost into their product pricing.
All this digging on Bossie's but no one mentions The Cruisery and their "Covid Recovery Fee" which 1) is not optional, and; 2) is 5% if memory serves correctly.
I, too, am not one for extraneous fees but at least Bossie's is offering a choice. Using a CC is a convenience at the end of the day (coming from a person who never carries cash).
Tough call for Bossie's but I wont be boycotting them based on this. Cruisery, however, is a different story. What a joke.
Third generation Santa Barbarian and small business owner of 40+ years here..... and all I can say to much of these comments is WOW! This is not the kind of attitude that I thought was in our community, the same one that has brought me decades of support........ I implemented CC fees maybe 4-5 years ago paying over $3k/mo to the CC companies. So you think that restaurants (many of whom operate on slim 10% profit margins....... it's true I have many friends with restaurants past and present..........) should absorb that kind of cash so ya'll can use your cards? No. Communities are built on the backs of small businesses.... They support the local economy and provide jobs...... Credit cards are a modern convenience for customers, NOT for business owners.....................
I commend Bossie's for their transparency and overall response to the matter.... Even better than that, their food is always delicious, their staff friendly and welcoming, and their home made DONUTS?! CHICKEN POT PIE, KOREAN CHICKEN, SALMON......... I just tried the short ribs... Keep it up, keep it Bossie!
Very understandable that restaurants are trying to recover their prices increases as best as they can. Some restaurants in other cites charge a service charge for health insurance etc Some charge fees to be sure everyone gets a fair wage. I never have liked theses charges. I don’t like to start out with one price and ending up with another price. I have always felt a business charge one price what you need to run your business for all your costs. I generally avoid places that tack on extra costs. There is a lot of choices and competition. So I go to those places who keep it simple. I do love your food and baked goods. Best of luck but you are unlikely to see me.
Fantastic news Wonderful people Terrific food
I hear their rent was raised beyond reasonable. Can’t wait for their new location, will take this amazing business to even greater success. They fill a valuable link from farm to table offering humanly raised, organic food direct to the home cook. Absolutely love Motley Crew!!
Let’s go Bossie,s! great local spot fresh yummy foods. My kids love it there, nothing on the menu they don’t like which says a lot cause mine are picky picky picky.
3% no big deal plus i leave cash tip
Every single business in that world gets charged a 3% on every transaction done on a card. That’s the cost of doing business and allowing people to order food on credit.
At Goodland BBQ there is a cash discount, which is equivalent to a non-cash charge. I went to another place recently that had a similar thing but I can't recall now where it was.
I don't really have a problem with a restaurant adding a credit card surcharge as long as it's clearly disclosed. But to me "clearly disclosed" means it should be on the menu. Even if the menu prices aren't raised, there should be a notice on the menu itself mentioning the charge. When I look at the menu I want to see everything that will go into the price, not have the extra mentioned only at the time of payment.
That said, I do think it makes more sense to just raise the menu prices. If a 3% difference on credit card transactions is make-or-break for the business, that's living life on the edge.
Not up front...? Well, I can't speak on those businesses as I don't frequent them...... But what are you upset about, $1? $2? Now that's crazy!
Please continue to avoid all places that pass along their fees, I'm sure they don't want your poor attitudes anyway!
"Charged unduly"? You're being charged the fee that they are incurring ON YOUR BEHALF.
Matter of fact, 3% is likely much less than the average that they are actually paying, thanks to rewards cards with points, miles etc. Credit card companies increase their processing fees for these cards, forcing the business to pay for those rewards!
I LOVE BOSSIE'S and will continue to support them no matter what--those ladies ROCK!
Keep the list going, I'll happily support each of the restaurants named.
It's seems to be the norm nowadays to be nickel and dimed on services that were otherwise inclusive. ATM's at bank branches used to all be free, traveling - you were never charged for checking a bag, seats selection in economy cabin etc. Restaurants already have the benefit from having staff that is tipped in addition to their low hourly wage. But now, the cost of using something as ubiquitous as a credit card is being levied onto a consumer who is already paying a good amount to go out to eat at restaurant. It's a trend I really hope doesn't catch on.
Why not just raise all the prices and if a customer opts to pay cash discount the bill by 3%? I imagine if you did that you would feel as though you are missing out on money (on cash transactions) just like we feel we are being charged unduly (on credit transactions).
I appreciate Bossie's for being transparent about this issue and trying out another approach. If anything, us in the comment section should be upset about the 3-5% transaction fee credit card processors impose on small businesses like Bossie's that are just trying to do the right thing for their customers in a notoriously low-margin industry.
Is it a little clunky? Sure, but there's literally no difference between this and the alternative being proposed of raising prices on menu items. So... we're upset about another line item on the receipt? Unless I'm missing something, that seems trivial. I'll be ordering from them this week in support (and for delicious biscuits).
My family owned a restaurant for many years so this issue is very close to heart. I don’t understand why people are ok with dealing with the massive inflation everywhere else, but not ok for a small business to increase their prices. Aren’t we all living in the same area and same year? They’re not exempt from inflation or fees.
If this keeps up, the large chain fast food places are the only places that will survive. But then, if you want something cheap and fast food with a lot of preservatives, you’re in good company.
