Iconic Washington D.C. Restaurant Chain sued over ‘misleading’ 3.75% surcharge

November 10, 2023 by No Comments

A group advocating for travelers has filed a lawsuit against Clyde’s Restaurant Group, labeling their 3.75 percent menu surcharge as misleading.

Travelers United, a Washington D.C.-based non-profit focused on traveler rights, has accused Clyde’s Restaurant Group, which operates establishments like Old Ebbitt Grill and 1789, of engaging in deceptive advertising. The organization claims that the “2023 surcharge” of 3.75 percent on the menus of Clyde’s restaurants breaches DC’s consumer protection and liquor license regulations.

John McDonnell, the President of Clyde’s Restaurant Group, maintains that the surcharge adheres to the DC Attorney General’s recent directives regarding transparency in restaurant fees.

This lawsuit marks Travelers United’s first legal action against a restaurant. The group has previously challenged MGM Resorts, Hyatt, Hilton, and Sonesta hotels over supposed “drip pricing,” a tactic where an initially low price is increased through additional hidden charges. This particular lawsuit refers to an October meal at Old Ebbitt Grill, where Travelers United President Charlie Leocha and a colleague ordered dishes including calamari and salads, resulting in a $58.07 bill plus a $2.10 surcharge, excluding tax.

For 2024, Clyde’s Restaurant Group was considering price hikes over maintaining a surcharge, but McDonnell asserts that any changes will be unrelated to the lawsuit.

This legal action against Clyde’s differs from Travelers United’s previous hotel lawsuits in that it is not a class action. The main objective, according to Wolfe, is to compel Clyde’s Restaurant Group to eliminate the surcharge.

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