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


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, 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.