A “Service Fee” Is a Label. It Does Not Tell You Who Gets the Money.

Restaurants, delivery apps, hotels and ticket sellers increasingly add charges called “service,” “operations,” “processing” or “hospitality” fees. The names sound explanatory.

Restaurants, delivery apps, hotels and ticket sellers increasingly add charges called “service,” “operations,” “processing” or “hospitality” fees. The names sound explanatory. Legally and financially, they can describe very different things.

By Brandon L. Burley
Systems Explained

The dinner costs $100.

Then the restaurant adds another line:

20% service charg…