Prof Tells CP About Potential, Challenges in Restaurant Surcharges to Fund Benefits

Facebooktwittergoogle_pluspinterestlinkedintumblrmail

Michael von Massow

Prof. Michael von Massow, Food, Agricultural and Resource Economics, was interviewed by the Canadian Press May 10 about the practice in some restaurants of adding a consumer surcharge to pay for employee benefits. The story ran in various Canadian media outlets, including CTV News, CityNews.ca and Metro News. Von Massow said the practice — including one Toronto restaurant with an optional surcharge — may attract customers favouring corporate social responsibility. But he said such a surcharge could induce customers to reduce their food purchases or curtail restaurant visits — a potential blow to an industry with small profit margins. Von Massow studies restaurant pricing and revenue management.