WHY HAS CAFE SEVILLA IMPLEMENTED A SURCHARGE?
On April 15, 2018, Cafe Sevilla implemented a surcharge to help cover increasing operational costs brought on by new federal, state and local laws. We determined that this surcharge was necessary in order to sustain the best working environment for our dedicated team members. This decision was weighed thoughtfully by our executive team and we hope you can trust and support our conclusions. We aim to be transparent with this policy by printing this policy on our menu, marketing materials, guest check, website and posted on several signs throughout the restaurant. We remain committed to our guest’s bet experience by providing the true essence of Spanish culture, music and cuisine and have been doing so since 1987.
WHAT IS CAFE SEVILLA’S SURCHARGE POLICY?
A 5% surcharge will be added to all guest checks to help cover increasing costs & in support of the recent minimum wage & benefits for our dedicated team members.
FACTS REGARDING INCREASES IN MINIMUM WAGE AND HEALTH INSURANCE IN CALIFORNIA
Restaurants average about 4-7 cents per dollar of profit after all expenses are paid so our margins are razor thin to begin with. Any major change in legislation, especially the significant changes made in 2015 can have a huge impact on our bottom line. In 2015, Congress passed the Affordable Care Act requiring “large employers” to offer adequate and affordable health insurance to their employees and their children. By complying with this legislation to support the health of our team members, our operation costs increased. At the same time, the minimum wage began increasing at an accelerated rate in California. In 2014, it was $8. Currently it’s $13. By 2022, it will be $15. That’s a $7 increase in eight years. By 2022, minimum wage will be 50% above what it was in 2015. This increase in minimum wage does not also take into account the workers compensation and other expenses that also go up with payroll. These are some of the major factors that contributed to our decision.
ADDITIONAL SUGGESTED READING
As we mentioned, we aim to be transparent with this policy and appreciate your interest in it by arriving at this page. We invite you to read these recent articles published that touch more on the topic from an independent party’s point of view:
San Diego Magazine Winter 2019 Article