Why is Burdell Facing Viral Backlash Over a Service Fee?

For the last several days, Burdell, voted #1 restaurant in the nation by Food & Wine Magazine, has been repeatedly attacked online following a now-removed Reddit post accusing the restaurant of a perception of unfair tipping policies. Within two hours of the post going live, there were over 1,000 comments from Reddit users, several hundred complaints on Instagram, threats to burn down the restaurant, and several hundred more negative reviews on Yelp and Google…largely from people who have never set foot inside or eaten at Burdell. Owner Geoff Davis recalled the day the Reddit post went viral:

“The post got 1,500 responses in like two hours. And then we got 300 plus one and two star Yelp reviews in like an hour. And probably about the same on Google. And then we got probably 50, 60 emails.”

At the time, Chef Davis was in New York working a charity event and wasn’t able to quickly figure out where the issue originated until a regular customer sent him the Reddit post. Since then, the situation hasn’t settled down. In fact, it’s still escalating, and the metaphorical forest fire of comments, reviews, and trolls continues to grow. This can likely be pinpointed to several issues combining to make the situation far worse than expected.

We live in a nation where one person can create a snowball effect that negatively impacts not just a restaurant, but an entire community. Since the single Reddit post went viral, the restaurant has been receiving regular threats and has been bombarded with continued negative reviews, as well as clickbait articles that wrongly suggest a darker motive behind the service charge. One headline in the California Post read, “America’s best restaurant winner stokes outrage with automatic 20% charge because of country’s ‘racist’ past.” The California Post (the New York Post’s new West Coast publication) adds fuel to an already raging fire.

Why did they use the word ‘racist’ within their title? In short, the headline is click bait and irresponsible journalism. While the receipts at Burdell mention that tipping has an ‘ugly past’, there is nowhere that suggests this history is directly related to racism. Someone might choose to make that inference, but by using the word “racist,” the California Post is intensifying an already heated situation.

People everywhere are frustrated by the rising cost of living. We all go to the grocery store with tighter budgets. So I understand how someone might have felt surprised by the service charge when they discovered it. But no one was hiding it. The menu is posted on the door before you walk in, and the service charge is clearly noted at the bottom of every menu, as well as on the receipt when you pay for your meal. Every time I’ve dined at Burdell, the staff has also mentioned it to ensure I know not to leave an additional tip. There isn’t even a tip line on their receipts to write in any additional amount to pay.

In fairness, perhaps the server forgot to mention it that day—but we’re all human, and we all make small errors. For a minor oversight to go viral in an effort to take down a restaurant is, in my opinion, diabolical, unfair, and completely uncalled for.

I can’t help but wonder: If this were a different restaurant in a different city, would this be happening? Is it because it’s a restaurant that has received so much positive press? Is it because it’s owned by a person of color? I’d hate to think that could be part of it, but it has crossed my mind as I watch the story continue to unfold.

At the end of the day, Burdell has always had a service charge in lieu of a tip - even when they were a popup way back in 2022. This is a common practice within the restaurant industry. In fact, I did a bit of digging and it seems like Burdell is actually coming in lower than other comparable restaurants, according a list I found, many SF restaurants come in at around 25% (such as China LIve and Zuni Cafe) which include an additional 4-5% from a SF mandated service charge.

By doing this, the entire staff works together to provide the best possible experience. Service charges have become so common that many employees now expect their tips to come in the form of a service charge rather than an ever-fluctuating tip amount. By offering a stable, livable wage, restaurants are better able to retain their staff and keep their restaurant family happy and healthy.

Burdell explains on their website FAQs the reason behind their own service charge:

“[the service charge] is instead of traditional tipping and this helps us make sure everyone on our team is paid fairly and consistently-from the folks you see on the floor to the ones working hard behind the scenes. This model also allows us to cover up to 75% of healthcare costs for full-time employees, which is something we really care about. We feel strongly that this is the most empathetic and professional way to pay our teams. Because it’s a service charge (which is considered part of sales in the State of California) and not a tip (or gratuity), it is subject to sales tax and yep, we pay taxes on it too! To avoid confusion, we don't have a tip line for this reason, but all written in tips or cash goes directly to the people who served you. There's more to unpack here regarding the origins of tipping, but we'll keep it short and sweet.”

So, is it fair to charge a service charge? In my opinion, it absolutely is. It is the responsibility of the restaurant (and any employer) to take care of their staff and to provide them with a living wage and benefits. Gone are the days that it’s OK to give someone a $0 tip. If you have feedback on the service you can either ask for something to be changed directly or choose to not frequent an establishment you believe doesn’t meet your standards.

Owning a restaurant is not a get-rich-quick scheme where millions are made overnight. In fact, most full-service restaurants operate on an average profit margin of around 4%. That means that for every $100 meal, only about $4 goes back into the restaurant as profit. Service charges do not go into a bucket of profits—they support the people who work there.

Chef Davis goes on to say: “The service charge is so that the staff can actually pay their bills when, like, they know what to expect and don't have to just hope that they have nice people in their section that, you know, comply with this silent arrangement that we've had for decades.”

The best part of this entire story: our community is already stepping up to offset the negativity. Reservations have increased during a time that restaurants often have lower customers. People are also looking to help by trollin’ the trolls and making sure to educate by meeting hateful comments with truth and encouragement toward Burdell.

If I could say something to the trolls targeting restaurants, it would be this: No restaurant is trying to pull the wool over your eyes. No one is scheming to steal from you. They simply want you to enjoy great food and have a memorable experience. When you support a business, big or small, you’re supporting the entire staff by showing up with your hard earned dollars. You’re supporting your community by putting money directly back into it. 

Instagram: @burdell_oak
Reservations can be made here: BurdellOakland.com
Pro-tip… if you love the vibe of Burdell, check out their playlists on Spotify. Music is a huge inspiration for Chef Davis Listen to his Burdell playlist on Spotify