Customers at Kern's Food Hall may notice an unfamiliar charge on their receipt after paying.
A screenshot of a receipt from Irvey's Ice Cream began circulating on Reddit after a customer spotted a 10% "Kern's
experience fee" and questioned where the extra cost came from. Knox News visited multiple food vendors at the South Knoxville destination Aug. 19 and found additional fees varied by business, ranging from 4% to 10%, while some charged none at all.
Kern's manager Grant Belback told Knox News via text that the optional fee charged by some vendors "wasn't a Kern's decision" while acknowledging the explanation displayed at Irvey's.
"Over the past several years, the shared operating costs that support the Kerns Experience have risen far beyond the original projections," reads a sign near the Irvey's register. "A Kerns Experience Fee will be added on to each order. ... If you would prefer to have the fee removed, just let us know. We are always happy to leave it off."
Belback said he saw the Reddit post and understands that "nobody likes paying higher prices." But South Knoxville is "growing fast," he said, and "as we grow, costs grow too."
Dustin Cochran, who has built a strong fanbase at Kern's across his four food hall concepts, told Knox News the food and beverage industry is notoriously difficult and that today's high supply and operating costs have added to those pressures.
Cochran has added a 4% service fee on all transactions at his four businesses inside Kern's: Disco Chicken and Donuts, Myrtle's Bakehouse, T. Ralph's Burgers & Fries and Wokxville. The same fee is applied to transactions at his Richy Kreme Donuts business 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."
Just like with Irvey's, customers who prefer not to pay the fee at Cochran's businesses can ask to have it removed.
At Disco Chicken, Knox News ordered a chicken biscuit and side of fries priced at $12.75 before taxes and fees. The 4% service fee added another $0.53 to the order, bringing the total to $15.06 after taxes, fees and a $0.50 side of grape jelly.
"I don't want to go in there and nickel and dime you for a pack of ketchup," Cochran said. "I never want to charge you for a pack of ketchup."
For dessert, Knox News ordered one scoop of ice cream in a kids cup priced at $5.75 before taxes and fees. The 10% experience fee added another 58 cents to the order, bringing the total with sales tax to $6.91.
Irvey's Ice Cream owner Trent Sanders told Knox News in a text message that the fee typically adds about $1 to a customer's order, roughly the cost of the free sprinkles offered to customers who pay it.
Belback said the experience fee remains an individual business decision and that Kern's has no plans to implement a similar charge across the food hall.
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: Knoxville food vendors explain 'experience fee' popping up on receipts | Exclusive
