New York City restaurants would be able to charge customers a 10% Covid-19 relief fee under legislation approved Wednesday by the City Council
Small restaurants will have option to charge customers 10% fee to offset financial hardship brought on by coronavirus.
The move would temporarily end a ban on restaurant surcharges in the city that has lasted more than four decades. The new fee is intended to ease some of the financial hardship city restaurants have faced since March because of the coronavirus pandemic and lockdowns meant to curb the spread of virus.
The city now only allows pickup and outdoor dining at restaurants. Gov. Andrew Cuomo said earlier this month that restaurants could resume. But many restaurant owners say they will struggle to make ends meet without full indoor dining. Council Member Joseph Borelli, a Republican from Staten Island who introduced the “COVID-19 Recovery Charge” law, said the fee would “give restaurants the freedom they need to increase revenue to help cover rapidly rising labor and compliance costs and keep them in business.”
Mr. Borelli has been pushing for a permanent version of the measure for years because of increasing labor costs. However, the pandemic has provided the opportunity to test the surcharge for a limited time, said Council Member Keith Powers, a Manhattan Democrat.
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