LA Restaurant Sparks Outrage With 'Admin Fee' Added On Top of Mandatory Tip

A Los Angeles restaurant is facing backlash from diners who were charged an "admin fee" in addition to a mandatory 20 percent tip. Üca Terraza, a restaurant located on the rooftop of the Delphi Hotel, drew criticism after a customer shared a receipt on Reddit highlighting the additional charges.

The diner posted an image of the bill to the r/LosAngeles subreddit, expressing dismay over the extra fee on top of the already included gratuity. The receipt showed charges for drinks, tuna crudo, seared scallops, and carne asada tacos, with a 20 percent gratuity calculated at $33 and a 5 percent "admin fee" of $8.25 added to the total.

Üca Terraza's menu states that a five percent surcharge is applied to all food and beverage sales. According to the menu's disclaimer, this surcharge is not a gratuity and is retained by the restaurant to help cover increased wages and benefits. The menu also notes that all checks are subject to a 20 percent gratuity.

The Reddit post quickly garnered widespread attention and criticism, with many users deeming the fees excessive and a "scam." Some commenters expressed frustration with the practice of adding mandatory fees that are not tips, suggesting that costs should instead be integrated into menu prices. Others remarked on the already inflated prices of the food items.

This incident echoes a similar situation in Washington, D.C., where a restaurant called Alara also faced public scrutiny for adding a 20 percent service charge, which it clarified was not a tip and intended to cover operational costs. That restaurant's policy also sparked a strong reaction online, with many questioning the necessity of such fees and advocating for transparent pricing.