Minnesota lawmakers are taking a stand against excessive restaurant surcharges with the introduction of Senate Bill 5378, aimed at capping surcharges at five percent. Proposed by Senators Latz and Klein, the bill was introduced on April 8, 2024, and seeks to enhance transparency and protect consumers from unexpected costs when dining out.

The key provisions of the bill stipulate that restaurants cannot impose a surcharge exceeding five percent of the total bill. Notably, the legislation distinguishes between surcharges and gratuities, ensuring that mandatory tips are not included in this limit. Additionally, restaurants must clearly disclose any surcharges before customers place their orders, with specific requirements for how this information is presented—such as bold type on menus or placards.

This legislative move comes in response to growing concerns among consumers about hidden fees that can significantly inflate dining costs. Advocates for the bill argue that it promotes fairness and transparency in the restaurant industry, allowing patrons to make informed decisions about their dining expenses.

While the bill has garnered support from consumer advocacy groups, it has also sparked debates among restaurant owners who argue that such regulations could limit their ability to manage operational costs. Some opponents express concerns that capping surcharges may lead to increased menu prices as restaurants seek alternative ways to cover rising expenses.

The implications of Senate Bill 5378 extend beyond consumer protection; it reflects a broader trend of legislative efforts to regulate pricing practices in various industries. If passed, the bill could set a precedent for similar measures in other states, potentially reshaping how restaurants communicate costs to customers.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders from both sides are expected to engage in discussions that will shape the final outcome. The Minnesota Senate's Commerce and Consumer Protection Committee will review the bill, and its progress will be closely monitored by both consumers and the restaurant industry alike.