California Restaurant's Service Fee Sparks Backlash
Chef Geoff Davis of Burdell in Oakland has replaced tipping with a fixed service fee to provide employees stable income, but the move has sparked anger and threats from customers. The controversy highlights ongoing friction around restaurant compensation models and the legacy of tipping culture in the U.S.
- The 20% service fee at Burdell is used to pay all hourly staff approximately double the local minimum wage and to cover about 75% of their healthcare costs. This policy has been in place since the restaurant opened as a pop-up in 2022. - The controversy ignited after a now-deleted Reddit post criticized the fee and falsely claimed it was not disclosed beforehand. The restaurant's policy is stated on its menu. - The backlash escalated to include threats of violence, such as burning down the restaurant, and racist attacks against owner-chef Geoff Davis, who is Black. The restaurant was also flooded with hundreds of negative one- and two-star reviews on Yelp and Google from people who had never dined there. - Tipping in the United States has historical roots in the post-Civil War era, when it was used as a way to hire newly freed slaves without paying them a base wage. - A California law that took effect on July 1, 2024, (SB 478) requires that all mandatory fees and charges be included in the advertised price. However, a subsequent bill, SB 1524, created an exemption for restaurants, allowing them to continue adding service charges as long as they are clearly and conspicuously disclosed on the menu. - The practice of adding a service charge instead of a tip line is not unique to Burdell and is used by other Bay Area restaurants, such as Ancora and the Michelin-starred Cyrus, to create more equitable pay between front-of-house and kitchen staff. - Before the recent online backlash, Chef Davis stated the restaurant had received no complaints about the 20% service charge. The restaurant, which was named the best in the U.S. by Food & Wine magazine in 2025, has since seen an outpouring of community support.
