Credit card fees, higher menu prices among changes following new price transparency law
Restaurants are adding credit card fees and higher menu prices to adjust to the new Minnesota Price Transparency law that went into effect on Jan. 1.
The law requires so-called “junk fees” like health and wellness charges to be displayed clearly on the menu price so customers can see it before they get the bill.
5 EYEWITNESS NEWS spoke to at least nine different restaurants in the Twin Cities, who said this policy is creating challenges.
Hell’s Kitchen is Valentine’s Day heaven in downtown Minneapolis.
“Right now, you’re supposed to be kind of basking in all of the Valentine’s decor for the Valentine’s Emporium that we have going on until Feb. 16,” Billy Schoenburg, Hell’s Kitchen president, said.
This holiday decor is one of many changes customers will face when they walk in and when they get the bill.
“Moving back to a traditional tip model just made the most sense for a lot of different reasons,” Schoenburg said.
Around the COVID-19 pandemic, Hell’s Kitchen added a 15% service charge to every bill to help close the wage gap between employees in the front and back of the house.
A new Minnesota state law forced them to remove it.
“It’s been kind of just a struggle sorting through how to afford what the current labor market demands, while keeping our prices reasonable,” Schoenburg said.
On Jan. 1, the state’s new price transparency law went into effect. It requires restaurants to advertise mandatory fees and surcharges up front.
The law says if a fee or surcharge is reasonably avoidable by consumers, it is not considered mandatory.

Lawmakers explained the goal is to increase transparency.
“I understand why the service charge went away on a lot of levels, like as a consumer, I definitely understand it,” Schoenburg said.
After Hell’s Kitchen dropped its 15% service charge, they increased menu prices and added a 3% credit card fee to offset costs.
In a statement, the Minnesota Hospitality Association called the law a confusing “one size fits all” approach.
They explained service fees are not ”junk fees” because they benefit employees through pay or other benefits. The association said in the statement they plan to work with the Minnesota Legislature to “fix the law.”