Recent online content about controversial fees charged at some Hawaii restaurants has sparked widespread debate, with many expressing frustration over what they see as excessive and unexpected charges. Hat tip to regular Beat of Hawaii commenter Jay for asking us about this 18% surcharge for takeout.
Kauai oceanfront restaurant adds a resort operation fee and a ToGo service charge.
One notable example is the 5% “resort operation fee” imposed on all checks at the Oasis On The Beach restaurant on Kauai, which applies even to diners who are not staying at the associated resort.
“A 5% resort operation fee is added to all checks. We reserve the right to not split checks and reserve the right to charge a 20% service charge for parties of 6 or more. A 18% service charge will be added to all ToGo orders.”
Oasis Kauai.
Outrage and skepticism among some online commenters.
Online communities, including Reddit, have seen a surge in comments from users who feel deceived by these additional fees. Many think that these charges are just another tactic to “nickel and dime” both tourists and residents to death.
Oasis has had nearly one thousand 4.4 star Google reviews.
But even then, some reviewers had concerns, including: “Extra “charges” – resort fee?” while another commented, “A total lunch disaster, the employee didn’t wash his hands after going to the restroom.” The restaurant subsequently apologized.
One commenter bluntly expressed their discontent, saying, “Welcome to Hawaii… also, this restaurant sucks.” This statement reflects a growing sentiment among visitors who feel unfairly targeted with hidden costs that diminish their dining experience.
Others took a more humorous approach to highlight their frustration. For example, a reviewer jokingly listed potential future charges, such as “utensils charge, toilet usage, napkin charge, lighting charge, the air you breathe in restaurant charge, and clean your table charge.” This tongue-in-cheek suggestion underscores the feeling that restaurants increasingly find creative ways to impose additional fees on unsuspecting customers.
Transparency issues amid questionable charges.
Several online users have called attention to other questionable fees, such as the 18% service charge on all takeout orders. One commenter was particularly outraged, questioning the logic behind such a charge: “Paying for not receiving dining services?” This type of fee is often seen as a deterrent to takeout, pushing customers towards dining in, where restaurants might see higher margins, especially on drinks.
While some comments pointed out that the resort fee is listed on the restaurant menu, many argued that simply disclosing the cost does not make the practice any less misleading. They noted that this allows restaurants to keep their menu prices lower while supplementing their income with hidden fees—a practice seen as deceptive by many.
Fees impact both Hawaii visitors and residents.
The conversation seems to highlight a broader discontent affecting tourists and residents. Some visitors have been openly disgruntled regarding the value of vacationing in Hawaii given the prevalence of such fees, with one commenter stating, “You will get absolutely nickel and dimed to death by all the fees.” This sentiment was echoed by others who noted similar “kitchen fees” and other charges at restaurants across the islands.
Local residents also voiced their displeasure. One person shared their approach to dealing with unexpected fees: “Any fee I wasn’t adequately made aware of comes off the tip with a note, and I don’t return.” This response reflects a growing frustration among locals who feel subjected to the same misleading practices as tourists.
This issue goes far beyond Hawaii restaurants.
Unusual fees at restaurants, similar to those seen in Hawaii, are becoming more prevalent across the U.S., sparking frustration among diners. Nearby, a new California law requires that all mandatory charges, such as service or kitchen fees, be included in menu prices to help ensure transparency and prevent surprises when paying. Similarly, in Las Vegas, some restaurants have added hidden “CNF” fees (Concession and Franchise Fees) to cover operational costs, often catching customers off guard with an additional fee of up to 5% currently. These practices reflect a broader trend of hidden fees in the restaurant and tourism industries, prompting debates over consumer rights and pricing transparency.
Calls for fair restaurant practices and honest pricing.
Amidst the debate, some commenters have suggested more transparent and equitable approaches. One user pointed out that the resort fees likely represent rent costs passed onto the independent restaurants operating on hotel properties. This suggests hotels are finding new ways to extract additional revenue from their premises.
Others have questioned the practice of maintaining artificially low menu prices only to add fees later, with one commenter describing it as “a shady business practice.” The consensus among many is that it would be more straightforward—and fairer—for restaurants to raise their prices rather than rely on hidden charges.
Conclusions and questions about these fees.
The conversation among visitors reveals some clear dissatisfaction with the practice of imposing expected or “resort” fees at Hawaii restaurants. Both tourists and locals call for pricing changes, expressing concerns over what they see as customer exploitative practices. It will be interesting to see if restaurants like Oasis adjust their policies to address these concerns rather than risk further alienating customers.
For now, it’s buyer beware. We suggest carefully scrutinizing Hawaii restaurant menus and bills to avoid unwelcome surprises.
Have you encountered any strange restaurant fees you’d like to report?
Image: Oasis Facebook Page.
No wonder tourists are not going to Hawaii. One is taxed to death. It is already extremely expensive for airfare, groceries, gas for expensive rental cars, etc. My husband and I use to live there and returned yearly but not anymore. Sad but Hawaii is fast losing it’s Aloha
I’ll go one better…there are restaurants in high tourist cities in Europe that now charge diners for every time a waiter comes to their table. Hard to believe Hawaii hasn’t caught on to this yet.