11 January 19-25, 2023 dallasobserver.com DALLAS OBSERVER Classified | MusiC | dish | Culture | unfair Park | Contents Nickeled and Dimed The era of dining sur- charges needs to end. BY CHRIS WOLFGANG W e’re ecstatic any time we hear about a restau- rant paying its employ- ees more, whether in the form of higher base pay or better benefits. On New Year’s Eve, Lower Greenville restaurants Rye and Apothecary rolled out a new 3% surcharge on all guests’ checks. Walkabout Hospitality, which owns both es- tablishments, says that the surcharge goes toward funding employee benefits, includ- ing health care coverage and paid time off. Next to the surcharge is a QR code, which directs diners to a list of the benefits being offered to Rye’s full-time employees. From that vantage point, Rye and Apoth- ecary should be lauded for doing the right thing for their employees. Tanner Agar, one of the owners of Rye and Apothecary, told the Dallas Morning News that the owners believe the dining experience will be im- proved by the surcharge. “You will have a better experience if you’re served by people whose whole lives are supported and who are able to go on va- cation, take time off to see people they love, go to the doctor and get medicine if they’re sick, etc.,” Agar said. We agree that happy staff in both the front and back of the house should make for a more enjoyable meal. We just wish that happiness weren’t contingent on a sur- charge found at the bottom of guest checks. Agar was careful to frame this surcharge around the benefits it provides rather than as a blatant price increase, explaining that management is “focusing on our team,” and it was a “really targeted decision.” To paraphrase Rick and Morty, that just sounds like a price increase with extra steps. Don’t get us wrong; we’re all too aware of the fiscal challenges that restaurants face, despite a dining public still showing a will- ingness to eat out post-pandemic. According to a November 2022 poll by the National Restaurant Association, 89% of restaurant operators said labor costs were a “significant challenge”; only food costs (92%) ranked higher. As a result of rising costs, 87% say they raised menu prices. Of course, raising prices comes with its own risks. Restaurants face an uphill battle against misinformed diners who truly don’t understand just how much it costs to run a restaurant. Labor and food costs make up two-thirds or more of a restaurant’s receipts, with utilities, occupancy, supplies, general/ administrative and repairs/maintenance ac- counting for another 29% of sales, according to National Restaurant Association statistics. Sarah has 17 years of experience in the Dallas area as a host, server, bartender and manager. She asked that we use only her first name, lest her opinions clash with those of her current employer. Her thoughts on the surcharge echoed several other front-of- house staff we spoke to. “The general understanding amongst those who work in service is that the job doesn’t come with many perks or benefits, no paid time off,” Sarah said. “You’re lucky if you’re offered things like health insurance, major holidays off, or a discount on food.” She thinks a surcharge that benefits the staff is a great idea. “I’m all in favor of surcharges that go di- rectly to the staff,” she says. “A lot of people in the industry genuinely care about what they do and the people they provide experi- ences for, so when a company makes the conscious effort to extend that same com- passion to their staff, it speaks volumes.” Agar tells us that at Rye and Apothecary this change covers 22 full-time employees, with another 14 employees who are part- time but able to earn some benefits. “Before this went into effect only 12% of our team could afford, and had, health insur- ance,” Agar says. “Now 100% of the team is covered. This program is incredibly success- ful with our team, and so far not a single guest has asked for the 3% to be removed.” While the benefits fee is the only sur- charge that Rye imposes, diners are gener- ally turned off by surcharges that clearly benefit the restaurant and not the staff. Credit card surcharges are popping up at more Dallas restaurants (despite Visa dis- couraging businesses from doing so). Sue is another waitress who spoke to us on the condition of anonymity. While she supports efforts to provide benefits, she agrees that some customers are tired of ex- tra fees. Sue is also suspicious of some res- taurant operators who will find any way they can to pad the bottom line, even if it means taking advantage of their waitstaff. “I would want to make sure that the sur- charge really goes to the employees,” Sue says. “I worked at a restaurant during the pandemic that used PPP [Payroll Protection Program] loans to pay us and withheld our tips, so I know these kind of things can hap- pen.” We asked Agar if they considered a mod- est bump in menu prices instead of the sur- charge. From Agar’s point of view, the customer is paying for the program either way, so no one should be upset. “The reason we didn’t [raise menu prices] is because we felt this was a way to be more transparent with our team and our guests about what we’re doing,” Agar says. “Except for this charge is one you can opt out of so this is actually a more guest-for- ward policy despite what the critics are say- ing.” But there’s the rub. The vast majority of Rye’s food menu would see an increase of less than a dollar per item had that been the approach instead of tacking on a surcharge. The price hike could have been built in and hardly anyone would have noticed. Instead, the surcharge looks like a subtle jab at work- ers who are demanding to get paid fairly by an industry that has long outsourced their pay to the tipping whims of the customers they serve. Agar tells us that no one has yet opted out of the 3% fee, but it’s probably only a matter of time before someone does, then takes to social media to raise a ruckus. We applaud Walkabout Hospitality’s al- truism in taking steps to improve the lives of its staff. And we’re all for transparency while promoting this benefit both to their custom- ers and to current and prospective employ- ees. But we can’t help but think that the self- aggrandizing pats on the back for doing right by their staff is another example of shifting the responsibility of better treat- ment of servers to the customer. Rye and Apothecary could have accomplished these goals with a few truly modest adjustments to their prices, but for the one-time expense of some new menus and an update to their website. Yes, a surcharge was probably easier. The trend of surcharging customers when they go out to dinner is one that we hope comes to an end sooner rather than later. ▼ BARBECUE FAKE BRISKET NEWS WE CHALLENGE A RUMOR THAT ANNOINTED PECAN LODGE AS THE BEST RESTAURANT IN TEXAS. BY NICK REYNOLDS F ood Network star Guy Fieri made waves locally and across the state when he proclaimed that the best res- taurant in all of Texas was Deep Ellum’s own Pecan Lodge. As it turns out, although framed that way by some, Fieri never made that claim. The foodie website Mashed published what appeared to be Fieri’s picks for the best restaurants in each state that have been fea- tured on his show, Diners, Drive-Ins and Dives. Later, the article was updated with an editorial note clarifying that the list was chosen by the Mashed editorial team and not Fieri. But by then, the story had made the rounds locally on social media and other outlets. Dallas news affiliate NBC 5 posted the story on its website with the headline, “The Best Restaurant in Texas, According to Guy Fieri.” Finding a more decorated restaurant than Pecan Lodge isn’t an easy feat. As you wait in the line, which often snakes out the door onto the sidewalk, you’ll see a wall adorned with a bevy of accolades. Despite the illustrious reputation, how- ever, the notion that Pecan Lodge is still the best in town, let alone the entire state, was met with heavy blowback online. Pecan Lodge shared NBC’s article on its own Facebook page and hundreds of com- menters chimed in. “Srsly? He picked Pe- can Lodge?” (No, not srsly.) Commenters argued Pecan Lodge wasn’t even the best barbecue in Deep El- lum anymore (Terry Black’s was referenced often). Others cited local barbecue heavy- weights such as Cattleack, Goldee’s, Hutchins, Slow Bone and Hurtado as supe- rior. The word overrated was thrown around often. However, many others agreed with the recognition. The fire was stoked. Few topics evoke emotions and deep convictions like food, particularly slow-smoked meats. But still: The best restaurant in the entire state? We decided to make a return trip for our own bit of research. Well, the brisket, which was $17 for a half-pound, was a touch dry. A few touches, actually. Same with the pork ribs ($14 for a half-pound). We did enjoy the burnt ends – intensely smoky and caramelized beauti- fully, these little hunks of charred brisket were just what you would expect at a place with standards as lofty as Pecan Lodge. The brisket sandwich ($16) was not bad, but nothing to write home about. And the mac and cheese and banana pudding, both of which typically score high marks here, were just OK. We went in the middle of the week, so maybe that played a part. Or it was just an off night. Shout out to the peach cobbler, though. Crumbly and delightfully sweet, it was superb. The proprietors of Pecan Lodge didn’t at- tain the heights they have reached Kathy Tran Apothecary added a 3% surcharge to checks. | CITY OF ATE | ▼ Dish >> p12
