So lets say, Visa charges 2%, Amex charges 4 % and less popular cards charge 6%. If the restaurant accepts all these, then lets say the average charge is 4%. So the restaurant charges 4% to cover a blend of card charges. .
Disclose it or not disclose it? If the restaurant tacks 4% onto every item, they don't have to disclose anything, everybody pays the same, like yesteryear. However, their published meal prices are higher, so in a very competitive environment, against a published meal price which doesn't include the cc markup, people will pick the cheaper meal. So now to combat published meal prices without the fee, the all in restaurant has to publish a lower price structure, and tack on the fee.
That is why the restaurants are saying everyone is doing it, because remember the United States' economic competitiveness: the cheapest advertised rates get the eyeballs and the customers.
Are the meals and dining experience the same? If i owned the business, i would be watching my overall
1) repeat customers
2) my meal per size per person
3) the menu items sold
4) my nightly specials success
but I like data analytics for competitive edge
|