Uproar over COVID surcharge causes Missouri restaurant to raise its prices, owner says

A Missouri restaurant has rethought its COVID-19 surcharge following complaints, but customers will still have to pay more for their food.

Images began circulating on social media this week of a $2.19 “COVID 19 Surcharge” added on a receipt at West Plains’ Kiko Japanese Steakhouse & Sushi Lounge. As the image was reposted, many people commented about their disagreement with the added charge.

“ ’Scuse me ... what? A covid surcharge...?” asked one social media user, whose tweet showing the receipt has more than 250 retweets and 550 likes.

Billy Yuzar, the restaurant’s owner, told TODAY that a 5% surcharge was added last week because of price increases on “meat, seafood and vegetables from their local supplier.” Kiko’s notified customers with signage inside and outside the restaurant about the new surcharge, according to TODAY.

The restaurant owner wrote on Facebook on Tuesday that his employees were getting harassed over the photo of the receipt.

He went on to explain why the charge was added.

“Please understand we are not doing this to take advantage of you guys!” the restaurant posted on Facebook, linking to a CNBC article about rising meat prices. “We are doing this hoping we can adjust the surcharge weekly rather than just raise prices on our menu due to increase prices from our supplier on meat, poultry, seafood & produce. Almost all of us here (are) getting our supply through the same supplier. So why are we the ones being harassed??!!”

Problems with the meat supply chain will likely continue, industry experts and analysts told CNBC.

Several other restaurants in West Plains also added surcharges, according to KYTV. Kiko’s manager, Sarah Sherwood, told the network that prices for fillets, rib eyes, shrimp, chicken and most of their steak are now double their previous cost.

Instead of a surcharge on Kiko’s receipts, the restaurant will raise all of its prices, it announced on Facebook.

“We are even making a lot of good promo deals so you guys still can enjoy our meal with a low cost, but due to prices going up & low margin, we have to raise our prices,” the restaurant wrote.

While many people spouted backlash on social media, the restaurant is receiving plenty of support from its customers on Facebook.

One couple wrote they would have left a larger tip for a recent order had they known “people were abusing hard working people.” Another woman suggested Kiko’s keep the surcharge.

“We will continue to gladly pay it,” Nancy McCartney wrote. “If others won’t, we will pick up the slack.”

Kiko’s has not announced what the price increases on its revised menu will be.

This story was originally published May 14, 2020 at 11:30 AM with the headline "Uproar over COVID surcharge causes Missouri restaurant to raise its prices, owner says."