Clovis Restaurant Implements Dual Pricing Strategy to Comply with New Regulations
A restaurant in Clovis, California has adopted a new pricing strategy in response to upcoming regulations on hidden fees. Seven Cafe & Grill, owned by Mike Mohammadi, now displays two prices for each menu item – one for cash payments and another for credit card payments.
According to Mohammadi, the implementation of dual pricing is aimed at increasing transparency and eliminating any hidden charges for customers. For example, the Good 4 You Skillet is priced at $14.99 for cash transactions and $15.44 for credit card payments.
The decision to introduce dual pricing comes ahead of the implementation of SB 478, a new state law that will come into effect in July. This law is designed to prevent businesses from adding undisclosed fees to their advertised prices.
Gilbert Dowling from Electronic Payments Incorporated highlighted the importance of compliance with the new regulations, as non-compliant practices, such as adding administration fees without prior notice, could lead to legal consequences.
By adopting a more transparent pricing model, Mohammadi aims to foster trust and loyalty among his customers. He believes that aligning with the state’s efforts to protect consumers from hidden fees is beneficial for both businesses and customers.
It is expected that more restaurants in the area will follow suit and introduce dual pricing options on their menus, similar to the practices observed in gas stations for years. The Hidden Fees Statute (SB 478) will officially be enforced starting on July 1st.
Biography:
Mike Mohammadi is the owner of Seven Cafe & Grill in Clovis, California. With a strong commitment to transparency and customer satisfaction, Mohammadi has implemented a dual pricing strategy to comply with new regulations on hidden fees. His proactive approach to aligning with state laws demonstrates his dedication to providing a fair and honest dining experience for all customers.
