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Opinion | Restaurateur: New law aimed at transparency will hit SF restaurants hardest

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Opinion | Restaurateur: New law aimed at transparency will hit SF restaurants hardest


My business partners and I opened our NoPa restaurant, Che Fico, in 2018. From the start, we included a 4% surcharge to cover the additional costs we faced under the city’s mandated health care coverage plan, which requires restaurants to contribute to a city fund for employees.

When Che Fico reopened post-pandemic, we were driven by a mission to rectify long-standing industry injustices that disproportionately favored a select few—primarily servers and bartenders—at the expense of other workers who didn’t receive tips and worked long hours in substandard conditions. We instituted a 10% surcharge, increased pay across the board and introduced new benefits, such as a 401(k) plan with a 4% match and profit sharing.

It was not easy. We had to adjust our shared tip pool several times to ensure everyone was included and that it was fair to our entire staff. We also increased hourly wages to compensate for potential tip losses. This model epitomized free-market capitalism, where ownership collaborated with labor to find common ground and consumers had the choice to support a business that resonated with their values. Our menu was always clear that the charge would be added to the final bill. 

Now a new law known as the “junk fee” bill, taking effect July 1, aims to reshape California’s dining industry by banning restaurants from adding surcharges or service fees to their bills. Instead they’d have to raise menu prices, baking the surcharge in.

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While this may initially appear to benefit consumers, it will disproportionately harm small businesses—the latest move in a pattern of well-meaning yet detrimental policy decisions targeting the restaurant industry. It also obscures the challenge of operating in San Francisco, where voters and officials have repeatedly approved costly additional mandates that operators elsewhere do not face. 

We can all agree that hidden fees are frustrating. Nothing is worse than booking a hotel room at an advertised price, enjoying your stay and upon checkout, finding your bill laden with resort charges, Wi-Fi charges, valet parking and other surprise fees and taxes. I fully understand the frustration. I am a consumer myself. But the vast majority of restaurants don’t operate this way. If they charge surcharges or service fees, they post it on menus and let guests know when they book a reservation. 

Transparency is the goal, and this is one way for operators to show customers all the things they are paying for, beyond the cost of food. Guests have thousands of restaurants to choose from, especially in San Francisco. They can simply decide a certain restaurant isn’t worth the fee. And no restaurateur who believes in good service and repeat business wants to leave a bad taste in a customer’s mouth upon dropping the check.

But the new law focuses more on appearances than on the operational realities of managing a restaurant in one of the nation’s most expensive urban environments.

Gavin Newsom enacted San Francisco’s Health Care Security Ordinance during his tenure as San Francisco mayor. As governor, he continues to influence policy in ways that strain local enterprises. The health ordinance has been one of the most damaging things to happen to San Francisco small businesses and can be directly linked to the beginning of the surcharge trend here. One of the most pervasive problems with that legislation is that it punishes businesses for growing and hiring more workers, adding a cost of several dollars per hour per employee for businesses with 20 or more workers. But rather than use his post as governor to propose a smart, statewide reform of the health ordinance, this new junk fee bill will throw out all surcharges regardless of their purpose or how they are communicated to consumers.

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Advocates of eliminating service charges argue that doing so protects consumers, but that fails to consider the pressure San Francisco restaurants face—challenges beyond typical market fluctuations. They contend with some of the highest insurance premiums in the country, soaring utility rates from providers like Pacific Gas & Electric and a labor market characterized by escalating wages and staffing shortages. Consider:

Labor costs are rising: San Francisco’s minimum wage rose from $10.74 per hour in 2014 to $18.67 in 2024—a 74% increase approved by voters and the Board of Supervisors. Such spikes put a significant burden on labor-intensive sectors like the restaurant industry.

Inflation is increasing utility bills and the cost of goods: The pandemic further intensified supply chain disruptions, pushing the costs of ingredients up by about 15% in San Francisco. Officials have approved numerous rate increases for PG&E, leading to a 60-77% increase in commercial rates in the last decade, even as PG&E rakes in billions in profits. 

Rent and property costs are soaring: The city’s commercial real estate market has also surged, with rents increasing by about a third since 2014. Rent or mortgage payments are the third-highest expense for many restaurants, after labor and cost of goods.

Surcharges have enabled small businesses to manage these rising costs without shocking customers with drastic or frequent price increases and allowed them to convey these external cost pressures. Removing them could lead to a sudden spike in dining costs, further deterring customers and pushing restaurants toward insolvency.

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The irony is stark. Policymakers, comfortably dining at San Francisco’s top restaurants, seem oblivious to the adverse effects of their decisions on those serving them. By eliminating the option to communicate cost pressures through surcharges, the law does not support consumers. This will lead to decreased consumer spending, fewer shifts for waitstaff, reduced orders for suppliers and lower tax revenue from a once-thriving industry.

The “junk fee” law misunderstands basic economic principles: Thin operating margins and insufficient profits can lead businesses to close, which affects the entire community—workers, suppliers, service providers and local artisans. In my own restaurants, our surcharge has allowed us to improve pay across the board, offer a 401(k) with a 4% match and create profit-sharing. If Newsom’s intention is to dismantle these programs, then he is certainly being effective.

Hopefully, before the law takes effect, state leaders will have a dose of common sense and will revise the legislation to preserve the rich diversity of San Francisco’s dining scene. Otherwise, they will simply be compounding the issues that began with the initial health ordinance, without acknowledging the benefits workers and restaurant patrons receive surcharges are clearly spelled out.

David Nayfeld is the co-owner of Back Home Hospitality, which includes Che Fico. Find him at @davidnayfeld on X and Instagram.



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San Francisco, CA

Get out of the house with these SF events

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Get out of the house with these SF events


San Francisco isn’t letting the rain that’s in the forecast damper residents’ moods. 

Here are some of the top events to check out this week in The City. 

Daniel Grace at Book Passage (Monday)

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Goran Bregovic and his Wedding and Funeral Orchestra (Monday)

Out of This World Showcase (Monday)

San Francisco’s Next Congress Member? The Candidates Debate (Tuesday)







Congress

State Sen. Scott Wiener, center, progressive-activist Saikat Chakrabarti and Supervisor Connie Chan are among the candidates vying for the congressional seat representing San Francisco. 

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An evening with Nathan Bickert and Levi Gillis (Tuesday)

Portrait painting (Wednesday)

Felt collage art workshop (Wednesday) 







YBCA

Yerba Buena Center for the Arts provides participants with materials for its drop-in workshops.



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Live Music: France, Pateka, Agnes Martian (Wednesday)

Artist reception (Thursday)

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SF steps up efforts to designate local landmarks amid push for housing

New accelerated program adopted to preserve historic and cultural resources in balance with updated zoning rules


Why the venture industry’s dark days don’t mean it’s doomed

With few IPOs and exits, firms have been struggling to send money back to investors and raise new capital from them — but experts see a turnaround coming

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Where every culture is beautiful: Carnaval season commences

Thirteen competitors will perform for a chance to headline the Mission parade and festival

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Downtown First Thursday (Thursday)

Wood Engravers’ Network 5th Triennial Exhibition opening reception (Thursday)

After Dark: Immersed in Verse (Thursday)







Exploratorium

Exploratorium patrons will be able to participate in activities such as an exercise in which people explore the connections between language and phyiscal movement.

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An evening with Anthony McGill and Gloria Chien (Friday)

Dirty Pop! First Fridays (Friday)

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‘16 x 20’ opening reception (Saturday)

Launderland Circus (Saturday-Sunday)

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Easter Mountain Lake Park 5K (Sunday)

Bring Your Own Big Wheel (Sunday) 







BYOBW

The annual Bring Your Own Big Wheel event takes place on Vermont Street in Potrero Hill.



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San Francisco’s 5 Best Affordable Places To Stay On A Tight Budget, According To Guests – Islands

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San Francisco’s 5 Best Affordable Places To Stay On A Tight Budget, According To Guests – Islands






As one of the most expensive tourist destinations in the U.S., according to a GoBankingRates study, San Francisco, California, turns “affordable” into a relative term. While you might be able to nab a roadside hotel for under $50 in the middle of nowhere, San Francisco hotels are considerably more expensive.

I’m from the Bay Area and often travel to San Francisco for work. I usually stay outside the touristy neighborhoods — I prefer the area near San Francisco International Airport (SFO) — because I drive my own car. The following suggestions are based on guest feedback from Reddit, Tripadvisor, Google Reviews, and Booking.com, supplemented by my knowledge of different parts of the city. These aren’t the absolute cheapest places in San Francisco, but accommodations I’d feel comfortable recommending to visiting friends or family on a budget.

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Although rates vary significantly based on demand, location, and a myriad of other factors, most relatively comfortable, affordable stays start from $150 per night for a private room, including taxes and fees. However, most hotels initially display rates online without taxes and fees. These hidden costs can easily bump up displayed room rates by $30 to $50, so make sure the final price includes everything, such as the “guest amenities fee” in some hotels. To keep the price somewhat low, you’ll likely need to sacrifice something, be that location, cleanliness, ambiance, amenities, space, or privacy. I’ve included estimated rates for the cheapest room at each accommodation (including fees and taxes), but you should take these numbers as rough guidance.

Chancellor Hotel on Union Square

Frequently mentioned among the top affordable hotels in San Francisco on Tripadvisor forums, Reddit, and area-specific Facebook groups, the Chancellor Hotel on Union Square makes guests feel at home in the heart of the city. Among the tallest buildings in San Francisco in its heyday, this 3-star stay dates back to 1914 and offers a taste of the past at an accessible price point. 

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Featuring over 130 rooms, most of which fit two adults max, this family-run hotel earns 4.5 stars on Tripadvisor, in part due to small touches. “I loved the free homemade cookies, fresh apples, and high-end coffee in the cozy lobby,” enthused a guest on Google Reviews. “They truly went above and beyond and made me feel like an old friend.” The location is also a draw for visitors. Union Square sits one block over, and the Powell Street Cable Car passes directly in front of the hotel. 

Those who didn’t enjoy their stay usually found issues with the small room sizes, lack of air conditioning, or staying in a loud room. For reference, the only time I’ve ever used air conditioning in San Francisco is during an unusually hot stretch in California’s “Indian Summer,” usually a few days in September or October. However, the price point is reason enough to sacrifice a few comforts. Expect room rates from $130 for a queen bed with a private bathroom, a bathtub with a bright yellow rubber duck (yes, you can take the duck home), and a mini-fridge. 

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Handlery Union Square Hotel

To secure a hotel with a heated pool, sauna, and gym in Union Square, you usually have to pay through the nose, but the 3-star Handlery Union Square Hotel is an exception. Cocooned in a courtyard, the swimming pool offers sun loungers and a place to relax after dark. The small gym features just enough equipment to maintain your fitness routine—treadmills, ellipticals, and free weights —while the sauna is private and must be reserved in advance. 

Built in 1908, the historic rooms (the most affordable option) feature Victorian architecture, as well as modern amenities like a mini-fridge, coffee maker, and flat-screen TV. A block from Union Square, the location is incredibly walkable and near Chinatown, shopping centers like Macy’s, and many restaurants. In the historic wing, guests report the problems you’d expect from an old building. For instance, some guests found the soundproofing insufficient, or stayed in rooms that felt dated rather than vintage.

However, for the price, most guests feel like they’re getting their money’s worth. “It was great, especially for the very reasonable price I paid. Very classy reception, and clean on the parking garage side too – felt very safe,” per a guest via Google Reviews. Rates hover between $150 and $250 for the most affordable rooms. However, the hotel offers discounts for guests attending events like a Giants’ game at Oracle Park or a concert at Civic Auditorium. There’s also a 20% discount for California residents. 

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HI San Francisco Fisherman’s Wharf Hostel

Showcasing views of Alcatraz and the Golden Gate Bridge, HI San Francisco Fisherman’s Wharf Hostel is a step above your average backpacker experience. While the hostel offers traditional dorms, ranging in size from four to 20 beds, guests can also book private rooms with views across the bay. “I got the private room and if you stood on the far side of it you could see part of the Golden Gate Bridge. It’s one of the best views you’ll get for this price in the entire city,” shared a traveler on Google Reviews. 

Occupying a cypress-covered hill in Fort Mason Park, the location is one-of-a-kind. It’s one of the only places in the city where you can stay in an urban national park; although campers can pitch a tent at Angel Island State Park in San Francisco Bay. Here, visitors can stroll along paths or sunbathe in the grass before exploring the city on foot or with public transportation. Lombard Street, the city’s famous winding road, is only a 20-minute walk away, and you can reach Fisherman’s Wharf and Pier 39 in 15 minutes. The hostel offers weekly free events, such as the Mission Walking Tour on Wednesdays or the Yoga at Grace Cathedral on Saturdays. Check the schedule here.

Dorm beds start from $36, while private rooms with shared bathrooms go for $110 and up. Guests use the common areas to work remotely or meet other travelers, while the hostel also offers laundry facilities and a kitchen.

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Golden Gate Hotel, San Francisco

Situated on the border of the Nob Hill and Union Square neighborhoods, the Golden Gate Hotel, San Francisco, maintains its old-world charm without falling into disrepair. It’s just around the corner from the California Street cable car and a 10-minute walk to the Cable Car Museum. A favorite among visitors on travel communities like San Francisco Travel Tips, this 4-story bed and breakfast was built in 1913, earning a spot on the National Register of Historic Places. Although the facade displays the Edwardian architecture typical of San Francisco, the interior reminds guests of compact flats in France or Italy.

With only 23 rooms, each one slightly different from the next, the hotel earns a 4.6-star rating on Tripadvisor. Afternoon tea and breakfast are complimentary, and guests appreciate the homey feel and resident cat, Skittles. “You could stay in the St. Francis for 3 times the price but you probably would NOT feel the sincere welcome of the decades-long established Golden Gate Hotel,” praised a guest on Tripadvisor. “This very clean, and gently cared for ‘nest’ in a wonderful location will soothe your frazzled senses when coming back from the tiring excitement of touristy jaunts.” 

Small rooms with a shared bathroom start from around $110, and come with Wi-Fi, a TV, bathrobes, and toiletries. Rooms with a private bathroom (plus an antique claw-foot tub) offer slightly more space and start from around $150 per night.  

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Marina Motel

Situated in the Marina District, just off Highway 101, the 3-star Marina Motel is a top choice among families visiting San Francisco. Many of the rooms come with kitchens and multiple bed configurations, which makes traveling with children easier. In addition, the room rate includes free parking, a rarity in San Francisco. 

Dating back to 1939, the hotel originally provided overnight accommodation (with parking) for people driving over the brand new Golden Gate Bridge. Still run by the founder’s grandchildren, the motel offers rooms perched over small garages, nestled in a courtyard with bougainvillea vines and window boxes filled with flowers. Every room comes with a microwave, coffee maker, and mini-fridge, but the kitchen accommodations also have a gas oven and stove top, a freezer, and kitchenware. “My fiance and I took our teenage daughter and her friend to San Francisco as a spring break getaway. This hotel gave the girls their own room and their own beds, while my fiancé and I got a nice quiet space to ourselves! The price was unbeatable for having 2 rooms,” praised a visitor on Google Reviews, where the motel earns 4.4 stars.

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From the motel, guests can easily reach San Francisco’s most iconic sites, but having a car is useful. However, the Palace of Fine Arts is a 10-minute walk away, and the motel serves as a starting point for exploring the nature trails at the Presidio. Rooms start around $140 per night with discounts for longer stays.

Methodology

To find the best affordable stays in San Francisco, I used my experience visiting as a Bay Area local and living in the city short-term as a jumping-off point. I scoured Facebook groups like San Francisco Travel Tips, and Reddit threads like r/AskSF and r/TravelHacks for affordable hotels I hadn’t heard of or potential hidden gems. 

Next, I dug through thousands of guest reviews on Tripadvisor, Google Reviews, and Booking.com, searching for hotels with convenient locations, clean rooms, helpful staff, amenities, and, of course, low prices. Then, I double-checked the prices using the hotel’s official website. I only included hotels where guests felt safe, and prioritized walkable locations. Finally, all the hotels have at least a 4.0 rating on Google Reviews or Tripadvisor. When booking your stay, consider using travel guru Rick Steves’ expert tip to find the most affordable hotels online.

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People We Meet: Ranjit Brar’s ‘horrible’ road led him back to San Francisco

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People We Meet: Ranjit Brar’s ‘horrible’ road led him back to San Francisco


“Imagine this, right? There’s a fork in the road where down one road is like — how would I explain this,” Ranjit Brar muses for a moment. “Dead trees. You see rocks, or a road that’s potholes. It’s just horrible.” 

The other road in the scenario looks beautiful, Brar says, but seemed “so far-fetched” that for years, he didn’t choose it. 

Instead, he found himself selling drugs, stealing cars, committing identity theft, anything — just to buy more heroin or pay for a place to sleep at night. He’d catch charges, post bail, skip town to the next county. 

“It’s easier to stay in something that feels more secure, even though it’s a miserable life,” Brar says. Today, he sits at a conference table, with his work ID and key fob hanging off a lanyard around his neck, his goatee neatly trimmed. A tattoo on his throat peeps over the top of his T-shirt.

One fork in the road came 12 years ago, when Brar found himself 32 years old and addicted to painkillers after a shooting at his home in Florida left him severely injured. He told a Daytona Beach news outlet in an interview at the time about his pain and the various medications he was taking to ease it. 

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Eventually, his doctors cut him off the pills, and he found his way to heroin. Before he knew it, his family was in shambles. 

Feeling “empty inside,” Brar left behind his children and relationship and hit the road back to the Bay Area. “San Francisco, it’s the best place if you want to change your life around,” Brar says. “And it’s the worst place if you want to destroy your life.” 

Brar had spent his early years here, and his adoptive father still lived in the area. 

“I came back to California … to reconcile [with] my father, try to see if I could salvage the relationship,” Brar says. “Any connection to family at this point, that’s what I wanted.” 

When that family connection fell through, Brar continued to find comfort in drugs. As he bounced around the Bay Area, committing petty crime, all roads seemed to lead back to San Francisco, his home base and the city where he was born. 

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“I’d come here, Tenderloins. I knew how to survive in the streets, how to sell drugs, the homies are here,” Brar says. “For about ten years, I struggled with trying to get clean. And I couldn’t do it on myself.” 

Brar’s “rock-bottom,” he says, was the day he was arrested and realized he had no one to reach out to. 

The loneliness was jarring. It reminded him of trying to connect with his father, or being shipped off to boarding school in India as a child — an experience he has now learned to see differently. 

“Even though it was a lonely time in my life, everything is something to learn from,” he says. He learned Hindi and Punjabi, and got to travel and see the Himalayas with his grandmother. 

In a similar way, Brar today finds a different kind of solace in the Tenderloin. 

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He attended rehab in custody and after he was released, and began volunteering with St. Anthony’s. Brar now works there as a full time volunteer coordinator. He has an apartment nearby and another he shares with his girlfriend. 

As we walk out the door, we run into one of his best friends, with whom he does everything from attending Narcotics Anonymous meetings to going on vacation together. He clarifies that this person is “not a homie, a friend.” 

Brar connects with other people in the throes of addiction and lets them call him if they need support. 

And beyond the neighborhood, his children are grown up and successful, one surfing in Australia, another working as an electrician in Florida, and a third attending college in New York. 

Brar, though, still finds his comfort in San Francisco. Reflecting, he says that rehabilitating in the same place where he used drugs has only made his recovery stronger. “It keeps me grounded.”

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