Subway sparks debate after charging customers ’10% service fee’ to help pay for workers’ wages

Subway has divided customers after a Reddit user claimed their local store had begun charging a service fee.

If you’ve ever been waited on hand and foot at a restaurant or dined in a large group, then you may have encountered something called a ‘service charge’.

Here in the US, tipping culture is incredibly important and more than often, service workers are tipped fairly.

But what about when an extra service charge is added on the bill automatically?

Well, one Reddit user has sparked debate after claiming a Subway restaurant has started charging for its staff assembling their sandwiches.

A user by the name of @bologna510 recently uploaded a picture of a notice that was allegedly situated inside a Subway store.

The sign read: “Service Fee. A 10% service fee is added to your check which is used to help pay for our team members hourly wages, insurance, and benefits.

“This will help us keep up with the rising cost of business while keeping the cost of products affordable for all our guests.”

Reddit/@bologna510

The notice concluded by thanking customers for their ‘loyalty’ and their ‘understanding’ of the situation.

The post was uploaded to the popular Mildly Infuriating Reddit thread with the title: “Went to Subway for the last time”.

A comment was also provided by the user, who wrote: “Now I know why the app isn’t working…”

UNILAD has reached out to Subway to gain clarification on whether the service charge is a store-wide initiative or a decision made by an individual franchise.

Social media users have come out in their droves to debate the notice, with one commenting: “These ‘junk fees’ need to just be made illegal. Sticker price needs to reflect price out the door. I'm sick and tired of being nickle and dimed.”

“Yeah what the f**k is that,” replied a second. “Forcing a 10% tip at SUBWAY is absurd.”

Another Reddit user wrote: “Lmao, if you are keeping the costs of products affordable, but then tacking on that cost in the form of a service charge, who the heck are you kidding?”

Erik Mclean/Pexels

“These ‘junk fees’ are to become illegal in California from July,” replied a third.

Last October, California Governor Gavin Newsom amended the California Consumers Legal Remedies Act which will ban these so-called ‘junk fees’.

The law officially comes into play on July 1 2024 and means Californian customers will be able to see how much they’re being charged by restaurants, hotels and delivery apps from the outset.

Speaking about the legislation, California Attorney General Rob Bonta said: “These deceptive fees prevent us from knowing how much we will be charged at the outset.

“They are bad for consumers and bad for competition. They cost Americans tens of billions of dollars each year.”

‘Drip pricing’ is also being banned in the state, which the legislation defines as: “advertising a price that is less than the actual price that a consumer will have to pay for a good or service.”