San Francisco restaurants dread 'disturbing' law banning service fees

George Chen, owner of China Live in San Francisco, implemented a 20% service fee to support staff wages, achieving a 95% retention rate. However, a new California law effective July 1 will ban such surcharges, used by many local restaurants to manage rising operational costs and ensure pay equity. This law, aimed at eliminating "junk fees," is causing concern among restaurant owners like Chen and Laurie Thomas of the Golden Gate Restaurant Association, who fear it will force higher menu prices and potentially drive away customers.