Photo Source: Danyel Fisher

New York City Approves 10% COVID-19 Surcharge For Restaurant Recovery

Independent restaurants in New York City will be allowed to charge a COVID-19 Recovery Surcharge of up to 10% of a patron’s on-premise tab under new legislation passed by city council. The add-on must be separated from other expenses and listed as a COVID-19 recovery surcharge. Guests must also be informed that the charge does not constitute part of the employee tips. Mayor Bill de Blasio is expected to sign the surcharge into law before September 30 when the city’s restaurants are set to reopen their dining rooms at 25% capacity. The law will be in effect for 90 days after the city’s dining rooms have fully reopened. Proceeds from all surcharges are intended to aid in covering sales losses and additional costs that restaurants have endured throughout the pandemic’s recurring shutdowns and limited reopenings. The surcharge does not apply to chain restaurants. Get the full story here at Restaurant Business.

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