Supporting Question 2: How did government regulation in the restaurant industry help o
hurt the economy?
Source E: The following is an excerpt from an article published in the Washington Post titled
"Service fees have upended D.C. restaurants. Here's how workers really feel."This article wa
written by Zoe Glasser and Marisa lati and published on May 24,2024.
The introduction of service fees in Washington, D.C., following the passage of Initiative 82 has
stirred significant debate and concern among restaurant workers and owners alike. This
initiative, almed at gradually increasing the minimum wage for tipped workers, has prompted
many restaurants to adopt service charges to manage rising labor costs.
Valerie Torres, a bartender in D.C., has observed a decline in her tips since the initiative took
effect. She works at Nick's Riverside Grill, which now adds a 5 percent operational fee to all
bills. This fee is intended to offset high costs like labor and rent. Torres worries that these
additional charges could hurt small businesses already struggling with narrow profit margins.
Chris Svetlik, owner of Republic Cantina and Hill East Burger, has taken different approaches at
each of his establishments At Republic Cantina, he continues to rely on traditional tipping
without implementing a service fee, absorbing the increased costs himself. Meanwhile, Hill East
Burger applies a 20 percent service fee to ensure both front-of-house and kitchen staff receive
fair compensation. Svetlik acknowledge.the complexity of these changes for customers but
emphasizes the necessity of adjusting to higher labor costs.
Max Hawla, a bartender at Grand Duchess, supports Initiative 82 for raising base wages, but he
criticizes restaurants that respond with service fees. He believes such fees deflect from the real
issue of fair pay and can confuse diners.
Jennifer Hitzke, a bartender at Madhatter, worries that varying service fees across restaurants
will confuse customers and potentially affect tips negatively She emphasizes the importance of
tips in motivating workers to provide excellent service.
Peter Pastan, owner of 2Amys Neapolitan Pizzeria, chose to raise menu prices instead of
implementing service fees when Initiative 82 began. He believes in transparent pricing and
ensuring his staff's earnings meet expectations without relying on tips.
Overall, the introduction of service fees has sparked a range of reactions among D.C.'s
restaurant workers and owners . While some see it as necessary for adapting to new wage laws,
others worry about its impact on customer satisfaction and the overall dining experience in the
city. As D.C. continues to navigate these changes,the long-term effects on its vibrant dining
scene remain to be seen.
