4-minute read ---

In a weighty move aimed at enhancing consumer transparency and competitive fairness, states such as Minnesota and Illinois are considering or have passed new laws that will prevent surprise "junk fees" in all businesses, including restaurants. For now, this type of regulation is happening on the state level, but such a change may take effect on a national level in the next few years, since a “junk fee” ban was proposed by the Federal Trade Commission (FTC) in October 2023.

However, other states such as California are exempting restaurants from their state-wide “junk fee” ban, and only requiring restaurants to clearly post additional fees on their restaurant menus.

In order to remain compliant and avoid potentially large fines and/or penalties, business owners and operators are encouraged to reference local news sources and government websites to stay abreast of changing state and federal laws.

What Are "Junk Fees"?
"Junk fees" refer to mandatory fees or charges that are not clearly disclosed to customers until the time of payment. These can include credit card surcharges, service fees, administrative fees, health care fees, employee wage fees, and any other mandatory costs that are added onto a final bill – without advanced notice to the customer.

Proposed “junk fee” legislation is intended to protect customers from hidden or unexpected charges that dramatically increase the cost of their final bill. It is also intended to level the competitive playing field by eliminating “unfair and deceptive charges.” Proposed legislation will do this by requiring that all mandatory fees are built into the posted or advertised price of a good or service, thereby promoting transparency to customers as they make purchasing decisions.

What This Means for Restaurant Owners
Unfortunately, many restaurant owners and operators are concerned about how these new requirements will negatively affect their business, as regulation will require an increase in advertised prices, which will likely deter some customers through “sticker shock” (at least in the short-term). To successfully navigate these changes, operators will need to take an “adjust, analyze, repeat” approach to maintain their business’s profitability while simultaneously managing customer satisfaction and promoting positive guest experiences.

Business owners and operators are encouraged to reference local news sources and government websites to stay abreast of changing state and federal laws

Ease the Blow with Aldelo Express Management Solutions
Fortunately, Aldelo Express Cloud Point-of-Sale offers restaurant owners multiple management solutions to help ease the blow of changing state and/or federal requirements.

• Cash Discount

To help merchants effectively reduce credit card processing costs, Aldelo Express offers an automated cash discount feature that incentivizes cash-based transactions. Per federal regulation, cash discounts can only be placed on menu items whose prices are adjusted to equal to their total “credit price.” To ensure this compliance, the Aldelo Express cash discount feature automatically adjusts menu item prices before applying the appropriate discount to cash orders. By simply turning “on” the Cash Discount feature in the cloud back office, owners and operators confidently implement cash discounts in their restaurant and document these charges on physical and digital receipts.

Aldelo helps restaurant owners comply with cash discount regulations by providing appropriate paperwork and documentation, available at no charge to Aldelo Express users, through its website. This includes signage to place in the restaurant environment that meets industry regulations for properly informing customers of cash discount opportunities.

• Up to Ten Prices Per Menu Item

Aldelo Express supports up to ten prices per menu item, including:

• 5 prices, one for each order type (Takeout, Curbside, Pickup, Table Service, Delivery)
• 2 prices per third-party service type (Pickup, Delivery)
• 3 prices per Masa+ order type (Dine In, Pickup, Delivery)

This unparalleled system flexibility enables restaurant owners to accommodate their menu prices according to new “junk fee” legislation while allowing restaurants to tailor their prices to reflect the true cost of each service type. The result is a deeper level of price transparency that suits their business needs while promoting competitive fairness and respect for their customers.

• Advanced Pricing Module

The Aldelo Express Advanced Pricing Module enables operators to make global price changes in their restaurant point-of-sale system and Masa+ digital menus. Users can:

• Change menu prices by groups of items or menu categories such as Bar Items, Beers, Appetizers, Entrees, Desserts, and More
• Change menu prices by order type: Takeout, Delivery, Dine-In, Table Service, and Bar
• Adjust prices by percentage or dollar values
• Make positive or negative price adjustments, to suit the needs of their business and customer base

Users can also schedule automatic price changes by time of day and days of the week, enabling restaurants to automatically update their menus during different meal periods, happy hours, seasonal pricing, and weekly specials, according to their business needs. This feature also supports temporary markdowns and markups, allowing operators to experiment with automated price changes for a specific period of time.

• QR Code Digital Menus

Aldelo Express offers fast, easy, and affordable menu changes with customer-facing QR code digital menus from Masa+. Updating traditional physical menus requires regular reprinting. For operators, not only do the associated costs quickly add up over time, but this method requires advance planning to ensure that printing orders are in the restaurant when the changes become “live.” Another option is to physically scratch out and write in new menu item prices by hand, but this risks sending a message of unprofessionalism and lack of quality to new customers, who often value a restaurant’s aesthetic experience alongside the quality of the food.

QR code digital menus, on the other hand, are easily updated without the need for paper or printing, and become immediately available on the Masa+ online platform. Customers simply scan a Masa+ QR code to view digital menus in-store, or from anywhere with an internet connection. Plus, as a native Aldelo Express solution, operators use the same Aldelo Express AI Menu Builder, Global Price Changer, and Matrix Menu Builder tools to make adjustments to their QR code digital menus as well as on Aldelo Express Point-of-Sale terminals.

Aldelo Express Does More
The elimination of surprise "junk fees" proposes a positive step towards greater consumer protection and industry fairness. Aldelo Express supports restaurants affected by these new laws by providing multiple tools to navigate the changing market and industry requirements.

Reminder: In order to remain compliant and avoid potentially large fines and/or penalties, business owners and operators are encouraged to reference local news sources and government websites to stay abreast of changing state and federal laws.

Learn more about Aldelo Express Cloud Point-of-Sale Solutions by contacting an Aldelo representative today at [email protected] or 925-621-2410

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​Restaurants that use ultra-competitive
Aldelo Pay or Aldelo Partner Merchant Services
obtain access to
a Centralized Multi-Store Restaurant Technology Platform
that includes Masa+ Online Ordering,
Unlimited Software Releases,
​Unlimited Software Upgrades, and 24/7 Technical Support!


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Please contact an Aldelo representative today for more details, 
including a free Aldelo Express POS demo trial

[email protected] | 877-639-8767 | [email protected]

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