A new state law banning so-called hidden “junk fees” when quoting prices to consumers takes effect on July 1, but some restaurant operators are facing difficult decisions with a possible exemption that is keeping many in a precarious limbo.
At Tacolicious in San Francisco’s Mission District , a cook sears a Niman Ranch grass-fed skirt steak to make a carne asada taco.
“The thought of raising the price more, it just keeps me up at night,” said Tacolicious founder Joe Hargrave.
When he founded his small business 14 years ago, he charged $3.50 for a premium taco. Now the price is $7.50, and likely to change soon.
“I think the restaurant sector is very afraid of that sticker shock and what’s it’s going to look like locally in San Francisco,” said Hargrave.
Hargrave is in the process of reprinting menus, and determining how much more to charge if service fees like the 6% surcharge — which helps him pay for San Francisco’s mandate to cover workers’ health insurance — get eliminated.