Should Small Business be Saved or the Customers?

Image of a receipt with a COVID surcharge

Lauren O’Neill

To save their livelihood, many small businesses are raising their prices, rather than face the consequences of a complete and total shutdown. The debate continues over whether small businesses should be raising prices during a pandemic.

A new restaurant in Chicago, Harold’s Chicken on Broadway, added a 26% fee at the end of customers’ bills. For some there was shock and outrage at the absurdity of this charge, while others quietly paid the fee, understanding the troubling times.

Prices are being raised in other places as well. Restaurant owners in Florida, Las Vegas and Missouri followed suit, although they fear that the increased prices will turn customers away.

A survey conducted by Research and Insights, Techonomic noted that, “38% of customers said it’s reasonable for restaurants to add a surcharge to cover pandemic- related prices, another 32% said that if they encountered such a practice, they would take their business elsewhere.”

This increase in prices can be seen at a variety of places such as nail salons, bakeries and even medical offices. One dentist reported to NBC news that their practice is being forced to abide by CDC guidelines which means buying face masks, face shields, sneeze guards and other sanitary related products.

Small business owners consider whether customers would rather see an increase in the cost of overall prices or fees at the end of a bill as the Chicago restaurant is trying. The balance between surviving and making customers happy seems almost impossible.

A popular trend that has surfaced across social media shows patrons tipping their waiters and waitresses hundreds of dollars, despite the fact that they may have only ordered a few drinks. The term has been coined mega tipping and has received much attention on TikTok.

News writer Marianne Favro for NBC Bay Area covered a story about a waitress in Pleasanton, CA who received a $1,200 tip from first time customer. Customer and donor Marilyn Weinstein stated, “This is $1,200 we know are you are shutting down soon, thought this would help.”

Mega-tipping is community members way at attempting to help small businesses, along with supporting them through take-out and purchases of gift cards, and they did not expect to be repaid with COVID surcharges and an increase in prices.

The world remains in an on-going fight to financially survive these unprecedent times. The upkeep of small businesses appear to be at the exploit of the customers. Will this ongoing debate ever reach a unanimous consensus?

About the Author

Lauren O'Neill
To capture myself in this miniscule box with only 100 words is a challenging if not impossible task. I could sit here and list out my major, perhaps even the part-time jobs I hold, but those aspects of my life are merely different hats I wear, but they do not capture my true self. In fact, there are no words to describe my true self because we never really know ourselves and we are always doing things that surprise us. However, as I navigate my life throughout college, I have learned to discover myself by exploring and understanding things I think are important to me. My resilience, integrity, and optimism in all of my various pursuits are small pieces of a large picture of myself. But the greatest lesson I have learned is that I am the only constant in my life, and I need to be ready to face and accept life’s greatest challenges.

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