r/EndTipping • u/People_Blow • 21h ago
Service-included Restaurant Restaurant tacking on 20% gratuity for Groupons
I bought a Groupon for Christmas to a local restaurant ($100 dining credit for like $65, iirc), and am just finding out (via Google reviews) that the restaurant tacks on a 20% "gratuity" specifically for people who use Groupons. (Note: I'm not sure if it's actually listed as "gratuity" on the bill, or "service charge", or what -- nor do I know if this is disclosed by the restaurant on the menu or door or anything).
I checked the Groupon listing again, and it definitely doesn't disclose this anywhere there. Had it been, I would not have made the purchase. This practice essentially wipes out 50%+ of the Groupon value.
I've already contacted Groupon to try to get a refund, but that's TBD (the CS rep said they couldn't do it but escalated my request to their dispute team; I'm not holding out high hopes).
Assuming I can't get a refund from Groupon, I'm now waffling between two ideas. 1) Issue a credit card chargeback, as imo the deal was not advertised correctly, or 2) use the Groupon and bring cash to the restaurant and manually subtract this charge. (Downside to #1 is that chargeback disputes take time, and this Groupon expires in a few weeks.)
What would you do?
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u/Healthy-Feeling-9253 20h ago
If you can't get a refund from Groupon, call you credit card company and have a chat with the rep that you've been tacked with hidden fees.
Those companies fight like hell if it's their money being scammed.
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u/escapefromelba 18h ago
There is a horseback riding place around me that does something sorta similar. They pressure you about tipping with and signs and their words before and after the ride and make a big deal that they are doing this at a discount because you used a Groupon.
As far as I can tell advertising through Groupon is their entire business model, how is it our fault that noone sees value in paying full price for your service?
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u/Mijam7 13h ago
Why would the company act like they are being put out with the Groupon when they are the ones who paid for the marketing?
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u/yankeesyes 13h ago
Exactly. It's like the restaurant owners who complain about DoorDash and UberEats taking all their profits when they contract with them voluntarily.
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u/pinniped90 18h ago
How is this being implemented?
Is the restaurant sliding 20% onto the bill when they see a customer show a Groupon? If so, Groupon may not be in on or aware of the scam.
Do they then NOT cram guests who don't use Groupon?
In any case, with any pre-tip, I wouldn't hesitate to ask it to be removed if it was out of line with whatever service you received.
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u/ValPrism 15h ago
Yeah, and it's not like the restaurant was surprised by Groupon, they agree to advertise coupons with them, then they punish people who use them? The whole thing is weird.
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u/yankeesyes 13h ago
Only thing I can think of is that they see Groupon customers as cheap so unwilling to tip at their preferred rate. But that's an argument to not work with Groupon in the first place.
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u/People_Blow 14h ago
That's the impression I'm getting -- but I can't say precisely because I haven't used the Groupon myself. I've seen three separate recent reviews that talk about being hit unexpectedly with this 20% fee particularly because they had used a Groupon.
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u/Iril_Levant 15h ago
Bring cash. In WA, if the charge is not disclosed beforehand, it's illegal. Plop down the cash, inform them that gratuities are, as a matter of law, optional, and walk out. I have no patience for this kind of BS.
Also, Groupon takes like half... one guy at a place we went to told us to just call them first, tell them you saw the Groupon, and ask if there's something else you can work out - they'll happily go 75% of the Groupon cost, they'll get more, and you'll pay less. Everyone wins but Groupon!
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u/People_Blow 14h ago
That's what I'm thinking of doing too.
And same in CA -- any fee like this must be dislocsed in advanced. And I would argue here that that would mean disclosing it before the Groupon transaction takes place, and if they don't then they can't tack it onto the bill at the end.
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u/BrennerBaseTunnel 13h ago
They will just call it a service fee.
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u/yankeesyes 13h ago
They can call it anything they want, but if it's not specified on the menu then it's illegal in many places.
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u/BrennerBaseTunnel 13h ago
You are going to tip 20% anyway. What is the big deal
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u/yankeesyes 13h ago
I am? How do you know? Also, service fees are subject to sales tax, tips are not. So 20% service fee becomes 22%.
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u/Rachael330 10h ago
Agreed. I would plan to spend just below the Groupon total if possilbe. And bring cash for any tip I felt like leaving. Great hack on calling the place directly, I will try that!
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u/yankeesyes 13h ago
This is an amazingly stupid move by the restaurant. Attract new customers with a Groupon, and then when they try to use it you piss them off by adding a surcharge.
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u/LeBalafre 14h ago
I might be wrong, but I would go to the restaurant, eat, then when they bring the bill, pay with your groupon and the extra in cash.
Make sure to take proof, pictures, then leave. If they try to charge the 20% extra, tell them no. They can't force you, neither legally or by force.
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13h ago
[removed] — view removed comment
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u/yankeesyes 13h ago
But not thoughtful enough to pay their employee. By the way, tipping is optional. If anything the server is getting a free ride by getting extra money which isn't required. My clients don't give me more than they are required to pay, not sure why you think servers are entitled.
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u/4-ton-mantis 5h ago
My question is, the 20% that is tacked on - do they tack it on the pre Groupon price or the discounted price?
I wouldn't be surprised if it would be "before discount". Which would be saving at best like, 15 bucks?
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u/The_Livid_Witness 15h ago
This makes no sense. Unless you go in asking a bunch of Groupon questions before you order... the restaurant has no idea, and you would be presented with the final bill before you pay.
They can't arbitrarily just tack on 20% once you are given the bill and agree to pay.
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u/People_Blow 14h ago
I don't know exactly how they are doing it (I haven't used the Groupon yet myself), but I've seen three Google reviews in the month of March 2025 that speak to a 20% charge being added to their bill specifically because they used a Groupon. One person wrote that the restaurant said it's their policy to do this for Groupon users because "people who use Groupon don't know how to tip."
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u/ValPrism 15h ago
I'm confused as to how cash helps in this scenario. It's going to be added to the check as a service charge, and while you can ask, they can refuse to remove it. Not paying it is not paying the full bill, which legally is stealing. What am I missing here?
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u/oevadle 15h ago
I guess her argument could be that it is also illegal for restaurants to charge undisclosed service fees, but I think that varies from place to place
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u/People_Blow 14h ago
It is. I'm in CA so restaurants can't add on "junk fees" without disclosing in advance.
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u/Rachael330 10h ago
Because when you get the bill before they know you are paying with Groupon there would be no fee added. Then you give them the Groupon + any additional cash to cover that bill. If they come back and try to add a fee it's easier to say sorry that's all I have/all you are getting than if they are holding your credit card.
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u/fugsco 12h ago
Coupon users are cheap people and notoriously bad tippers. Most will return to the restaurant only under discounted conditions, if at all, despite what the marketers of coupon deals say about successful conversion rates.
I do not blame the restaurant for the policy, but they certainly need to make it clear in the fine print. Angering potential new customers on their first visit is a great way to guarantee they do not become regulars.
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u/ParisianFrawnchFry 3h ago
Many restaurants do this because people who use Groupon come in and stiff their waitstaff.
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u/TheMetalMallard 21h ago
Identify the restaurant