Philly restaurants may add 20% service charges during World Cup
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A new service charge could land on your check at some restaurants and bars across the city during the World Cup.
Why it matters: Businesses are considering auto-charges when international visitors descend on Philly for the tourney this summer, many from countries with far different tipping customs.
Driving the news: The Pennsylvania Restaurant and Lodging Association is advising its members to add a roughly 20% service charge to bills temporarily during the tourney, which runs June 11–July 19.
- But businesses that adopt the recommendation would set their own rates — meaning the charge will vary from place to place.
What they're saying: "Tipping customs vary widely around the world," PRLA spokesperson Ben Fileccia tells Axios
- "Many of our visitors will come from countries where service is included, tipping is minimal or tipping is simply not part of the culture," he added.
How it works: A service charge is not a tip.
- So exactly where that money goes will depend on the restaurant's policy.
Yes, but: The industry group recommends that any service charge go to tipped employees like servers and bartenders, Fileccia says.
Worth noting: Pennsylvania's minimum wage is $7.25 an hour, but for tipped workers, it's only $2.83 an hour.
- So service workers rely on tips, which in the U.S. have a typical baseline of 15–20%.
Meanwhile, service charges are not a foreign concept in Philly.
- Some restaurants are already using them — like River Twice, My Loup and Loco Pez.
Zoom out: Restaurants in other U.S. cities hosting World Cup matches are considering adding auto-charges to bills, too, like Kansas City.
Between the lines: If businesses go the route of service charges, transparency and consistency are key, says Fileccia. PRLA recommends:
- Auto-charges should be applied to all checks, not just large groups.
- They should be clearly communicated on websites, signage or the check itself.
- And customers should be informed about where the money is going.