Iowa Restaurant Gets Backlash For ‘Inflation Fee': What It Actually Is

Newsflash: life is expensive.

A popular restaurant in Ankeny is getting some pushback after adding on an "inflation fee" to their tabs. Jethro's BBQ is at the center of the argument.

One restaurant regular told Des Moines station WHO13 that it was a surprise charge to pop up on his bill. His receipt, which totaled $6.21, had an additional $0.21 fee attached to it, which was labeled as an "inflation fee".

As you can imagine, he was not a fan, telling the outlet:

It’s the lack of transparency that I find annoying. I get it, restaurants have small margins. If you raise prices a little bit, that’s fine, I think people accept that, but when there’s a lack of transparency and it’s baked in as an inflation fee, I think people are kind of trying to say no to that.

The "Inflation Fee"

His concerns weren't the only ones evidently. Jethro's BBQ released a statement regarding the "inflation fee", saying that they have edited it on the bill to instead show 'Market Surcharge'. It's meant to help supplement the costs of ingredients instead of forcing the restaurant to raise menu prices:

We understand the concern with the Inflation Fee that has recently been added to our guest checks. Jethro’s acknowledges the word inflation doesn’t accurately describe the charge. After listening to guest feedback we have adjusted the wording to Market Surcharge to better support the meaning of the additional charge. It’s important to note that Jethro’s lowered pricing on many of our items when our new menu rolled out in November. Eggs have recently doubled in price, the cost of chicken has increased 50%, health insurance is up dramatically, and credit card processing fees have increased drastically. Rather than continuously raise menu prices as the market fluctuates we have added a market surcharge. This charge is intended to support not only the market fluctuations, but the many great benefits we offer to our staff and deep discounts we offer to our guests on a daily basis, such as 50% off Happy Hours and buy one get one wing deals and our loyalty reward program.

Jethro’s is proud to employ over 500 people and serve on average 3,000 guests daily. We have held off on adding any fees to our guest checks for years, while other businesses have had credit card fees and service fees for quite some time. With the volatility of the food industry in recent years we have come to the determination that a market surcharge is a necessary solution.

We appreciate the support of our many loyal guests and look forward to serving them for many years to come.

Transparency is always important but also remember that restaurants are paying more for everything too. Life in general is more expensive for all of us.

Extra Charges In The Food Industry

The whole concept of extra fees on restaurant bills is a hot topic lately and Jethro's isn't the only place to have extra charges. The FTC had proposed a complete ban of service fees but the National Restaurant Association had a ruling in December that forced them to re-evaluate that.

Fees like Jethro's "inflation fee" are designed, according to the National Restaurant Association, to help keep menu prices the same but allow the restaurant to adjust to the current market.