Service Charge

Why We Added a 5% Service Charge

Beginning June 15, JaK's Grill will add a 5% service charge to all guest checks.

We believe it's better to explain that decision directly than to have it appear as a surprise at the bottom of a receipt.

The Short Version

Every restaurant cost is ultimately paid by guests.

Food costs, labor costs, rent, insurance, utilities, benefits, taxes, and maintenance are all part of the cost of providing a restaurant experience. The question has never been whether those costs get paid. The question is how they appear.

Restaurants generally have five options:

Raise menu prices
Reduce portions
Reduce staffing
Reduce quality or service levels
Add a service charge

For most of the last decade, we chose menu price increases. As costs continued to rise, we reached the point where that approach alone was no longer the best solution.

We chose a service charge because it allows us to keep menu pricing more stable while clearly identifying a portion of the operating costs required to run a full-service restaurant.

Why Not Just Raise Prices?

It's a fair question.

From a guest's perspective, a $50 entrée with a 5% service charge costs exactly the same as a $52.50 entrée with no service charge.

The total is identical.

The difference is that we show it instead of burying it."

Rather than embedding every cost increase into menu prices, we have chosen to identify a portion of those costs separately. We believe that is the more straightforward approach.

What Does the Service Charge Support?

The service charge helps offset the operating costs of running a full-service restaurant, including wages, benefits, payroll taxes, healthcare costs, workers' compensation, paid leave, insurance, utilities, and other expenses required to support our team and our restaurants.

Like every business, when costs increase, those costs are ultimately reflected in what customers pay. This service charge is simply our chosen method of addressing those increases.

Is the Service Charge a Tip?

No.

The 5% service charge is retained by the restaurant and is not a gratuity.

Am I Still Expected to Tip?

Tipping remains entirely at your discretion.

Gratuities continue to go to the team members who serve you and are calculated on your pre-service-charge subtotal.

Why We're Doing This

Our goal is simple:

To continue operating fully staffed restaurants, maintain the hospitality standards our guests expect, invest in our people, and preserve the dining experience that has defined JaK's Grill for more than two decades.

We understand not everyone will agree with this approach. We respect that.

After careful consideration, we believe it is the most honest and sustainable path forward, and we appreciate your support.

Thank you for dining with us.

The JaK's Team