A Covid-19 Surcharge Might Be on Your Next Bill
As government mandated shutdowns and stay-at-home orders begin to be relaxed throughout the U.S., we’re starting to see an unexpected, but not surprising, result.
Covid-19 surcharges on a wide variety of service-related bills.
The coronavirus-related shutdowns have inflicted significant financial hardship on a wide-range of businesses.
Restaurants and bars are the first to come to mind for many, but hair salons/barbers, fitness centers and even dentists are some of the other businesses suffering from the loss of customers during the shutdowns.
And now, to win back cautious customers, not only do they need to follow local government requirements to open back up, but many have to implement added measures to ensure safety is priority one.
Think hand sanitizer, masks, extensive cleaning routines and limited service availability to ensure safe distancing is maintained.
All of these added safety measures have costs associated with them. And when those costs are added to the revenue these businesses have already lost due to mandated closures, the financial hit is difficult to absorb.
Covid-19 Surcharge
Which is where the Covid-19 Surcharge comes in.
Some businesses have decided the best way to offset the additional safety-related costs is to charge customers extra.
But rather than just increasing prices for the services they provide, businesses have determined a set amount each customer will be charged and added that to the bill with its own Covid-19 Surcharge line.
Or, in the case of restaurants and bars, the surcharge is a percentage of the total bill.
It was a restaurant in West Plains, Missouri, the Kiko Japanese Steakhouse and Sushi Lounge to be specific, which was one of the first to institute the Covid-19 Surcharge line on customer’s bills.
It was soon after an image was circulated on social media of the receipt that the restaurant learned how displeased people were with the practice.
Interestingly, the restaurant reported that its own customers were, for the most part, supportive of the surcharge, understanding the financial difficulties the restaurant was working to overcome.
The vast majority of those expressing outrage were doing so from areas no where near West Plains, or Missouri for that matter.
But, it illustrates that views are mixed when it comes to businesses adding charges specifically to offset the costs they’ve incurred as a result of the coronavirus pandemic.
Thoughts on Added Costs
I’ll be honest, I probably won’t be happy if I see a Covid-19 Surcharge on my restaurant bill.
Likewise, for my barber charge and my dental appointment…especially if insurance won’t cover the additional fee (which I’m sure it won’t).
Unfortunately, though, we all have to understand that we’re going to pay one way or another.
Whether businesses add a specific Covid-19 Surcharge on the bill, or quietly raise the prices they charge, most small and medium-sized businesses are in no financial shape to cover those costs on their own.
It’s a balancing act, though.
Businesses need to keep in mind they’re not the only ones negatively impacted by this pandemic.
Many individuals have lost income, or jobs altogether, as a result, and adding costs for those just getting by is not only bad in the short-term, but may be remembered – in a negative light – when things turn around.
The pandemic has been difficult – to put it nicely – for most Americans. And it’s important to keep in mind, it’s our fellow Americans who own and are employed by those restaurants and businesses that are struggling to stay open while keeping customers safe.
To help us all get through this challenging time, it’s likely we’ll all need to accept paying a bit more.
But the charges have to be fair. And once the added safety measures are no longer necessary, pricing should be reduced to reflect the new operating normal.
What do you think about Covid-19 Surcharges?
