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Culture War Roundup for the week of August 12, 2024

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However, I could never find a convincing argument for why they should care about this, unless they think that people are so stupid that they'll keep paying a 10% service fee but if they see the prices on the menu increase by 10% then they'll... Stay home?

Over time, yes. Or buy lower-ticket items.

People are stupid. They will do all sorts of stupid, irrational things. Restaurants want to charge people extra service fees on top of the sticker price for the same reason almost all prices end in .99: cognitive biases.

The whole world is a series of small nudges that, in aggregate, add up to insane wealth.

Or buy lower-ticket items

Bigger ticket items are actually less profitable for restaurants on average, because so much of it gets eaten up in food costs. I suspect the bigger concern for restauranteurs is that customers will stop ordering $2.50 cokes(easily the highest markup thing on the menu) to go with their $30 steaks if the price of the former increases by too much.

I can believe that they think this, but not all restaurants have fees, so it's clearly possible to run a business without it. They also never clearly say this (but I guess that might be bad for business).

They also never clearly say this (but I guess that might be bad for business)

People are always going to spin the most positive version of their proposed policies in public discourse. Particularly here, since restaurant fees are a specific industry and not a more general question (like personal tax rates), there's less room for people to say the quiet part out loud. So all you get is the "this will hurt our business!" and not the "this will make people rationally decide our business is charging too much money and go elsewhere!"

"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices."