LA Restaurant Criticized for Adding Mystery "Admin Fee" on Top of Mandatory Tip

A Los Angeles restaurant is facing backlash after a customer discovered an unexpected 5% "administrative" fee added to their bill, in addition to the establishment's mandatory 20% gratuity and the city's sales tax.

The diner shared their experience on Reddit, expressing surprise at the additional charge on top of already high prices. The post identified the restaurant as Üca Terraza, a "Tulum-inspired" Mexican eatery located on the rooftop of the Delphi Hotel.

According to the Reddit post, the diner ordered two beers, a still water, and three meals, including tuna crudo, seared scallops, and carne asada tacos. The subtotal, before the mandatory tip and sales tax, was $173.25, which included the 5% administrative fee. The total bill came to $226.36.

While the diner initially questioned the fee, commenters on Reddit, many claiming to be in the food and beverage industry, expressed their disapproval. The restaurant's website menu reportedly details the 5% surcharge, stating that it is "not a gratuity" and is "retained in its entirety by the restaurant to help defray the cost of increased wages and benefits."

This practice has drawn criticism, with some arguing that restaurants should increase menu prices directly rather than imposing additional fees. The situation highlights a broader trend of increased scrutiny on tipping culture and hidden charges in the restaurant industry. Similar controversies have emerged in other cities, with establishments adding "venue fees" or "living wage fees" to customer bills.

Üca Terraza also has a mandatory 20% gratuity applied to all orders. Online reviews for the restaurant have previously mentioned high prices and mandatory tipping.