Service fees charged by some Kern's Food Hall vendors are optional for customers and are added by individual business owners, not food hall management, as a way to offset rising costs.
Some confusion stems from Irvey's Ice Cream, which labels its 10% surcharge a "Kern's experience fee" on receipts. But Kern's manager Grant Belback said the food hall itself has no service fee policy and has no plans to roll out one property wide.
"This wasn't a Kern's decision," Belback told Knox News in a text message. "Irvey's made that call independently for their own operation a while back."
Knox News followed up on questions readers have asked since service fees at Kern's became a topic of discussion online. Here's what we found.
How do other food halls handle service fees?
Some food halls around the country
have adopted venue-wide fees charged at every stall.
When purchasing food from popular Tampa food hall Armature Works, for example, a 3% venue fee is added to bills from every stall.
"This fee is retained by the restaurant to support operational costs including facilities, equipment and overhead," according tothe Armature Works website. "It is not a gratuity and is not distributed to staff as a tip. Gratuity is at your discretion and added separately."
The website for the Freedom Street Social food hall in Arvada, Colorado, notes a "7.5% service charge is added to every bill which allows us to equitably compensate everyone that contributes to your Freedom Street experience, from the back of house, to the front of house."
"Additional gratuity for exceptional service is greatly appreciated by our staff but is not required or expected," the website says.
Do all Kern's vendors have a service fee?
At Kern's, additional fees are left up to individual vendors. Some businesses add a surcharge while others, including Ooh Lala Indian Kitchen, do not.
Dustin Cochran told Knox News the optional 4% fee charged at his Kern's stalls is also added to purchases at his businesses outside the food hall, including Richy Kreme Donuts locations on Northshore Drive and in Maryville.
"It's standard for us," he said. "Could I increase my menu prices across the board? Yes, but I don't want to do that."
Cochran said the fee is a way to offset rising costs without increasing menu prices across the board.
Restaurant menu prices in the South were 3.4% higher in July than they were a year earlier, according to the National Restaurant Association.
How can I have service fees removed?
Customers can ask for these fees to be removed, but they first need to know they're being added to their bill.
Irvey's has a sign near the cash register explaining the fee, citing that "shared operating costs that support the Kerns Experience have risen far beyond the original projections." Customers who choose to pay the 10% fee can ask for free sprinkles to be added to their order.
All you have to do is ask an employee, whether you're ordering from Irvey's or one of Cochran's businesses: Disco Chicken & Donuts, Myrtle's Bakehouse, T. Ralph's Burgers & Fries and Wokxville.
Receipts from Cochran's businesses label the surcharge simply as a "service fee."
Knox News reporter Joanna Hayes covers restaurants and retail for the business growth and development team. Email: joanna.hayes@knoxnews.com; Instagram: @knoxeat65. Sign up for Joanna's Eat65 email newsletter to get the latest drink and dining news, as well as restaurant recommendations, at knoxnews.com/newsletters.
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This article originally appeared on Knoxville News Sentinel: Kern's customers still have questions about optional fees. We have answers
