A California customer was irked after discovering they owed a restaurant an additional 5% “admin fee” on top of their bill’s 20% mandatory gratuity fee. In an r/LosAngeles post that might have fit better in r/mildlyinfuriating, Reddit user Redditup shared a photo of their phone’s screen, showing an $8.25 surcharge they had to pay along with the $33 in “pre-added tips.”
“The prices were already pretty inflated for the amount of food I got,” Redditup remarked in disappointment. “I thought it was pretty egregious to put a minimum tip amount and then charge an admin fee.” Anyone who ‘works for a living’ would probably agree that a forced 25% additional cost for one’s meal is rather outrageous but not illegal.
Many Californians likely know about the Honest Pricing Law, which began in 2024 and makes it illegal for businesses to add “hidden fees” to the final bill. According to the California Department of Justice, businesses can add mandatory fees, but only if they disclose the extra costs to the customer. Üca Terraza, which is the restaurant Redditup visited, discloses its “admin fee” on the menu, albeit in different wording.
The Restaurant Disclosed this Mysterious ‘Admin Fee’ on Its Menu
“All checks are subject to a 20% Gratuity on Final Bill. A 5% Surcharge is added to all food and beverage sales,” Üca Terraza states. It claims the surcharge isn’t a gratuity and is to “help defray the cost of increased wages and benefits.” Many Redditors are not convinced. “Probably doesn’t even go to the waiter with [expletive] place like that,” wrote a commenter.
“That is code for I’m a very poor business owner and the gov’t is making me pay my slaves,” joked a second user. “Born and raised in LA and I’ve worked in food service for 10+ years. I have never heard of an admin fee!!?? Absolute scam in my opinion!!!” exclaimed a third. Plenty more shared the same opinion: “That bill is extortion.”
In the end, the restaurant disclosed that Redditup would have to pay an extra 25% in mandatory fees. So, while not essentially illegal in any way, Redditors weren’t any less annoyed that someone would charge this much when the food already costs a fortune.
