Krugs Tavern in Newark, New Jersey, has been serving up outstanding burgers and cocktails since 1932.

Until recently the famed restaurant has had only one price for each item on the menu. The restaurant has now gone to a two-price menu.

Every item on the menu has a cash price and a credit card price.

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Photo via Canva
Photo via Canva

The credit card price is higher than the cash price because the restaurant must pass on the surcharge of the credit card processing fee that they face when we use a credit card to pay for our burger and beer.

To give you an example: a cheeseburger is $13.50 if you are paying cash; if you are paying with your credit card, you will be paying $14.04 for the exact same cheeseburger when you whip out your Mastercard.

Want a beer with that? A glass of the “King of Beers” Budweiser will cost you $4.25 if you are paying cash, $4.42 if you are paying with your credit card.

Photo via Bence Boros on Unsplash
Photo via Bence Boros on Unsplash

Krugs has added the 3.99% surcharge on every item on the menu for credit card use to cover the card processing fee passed on to them and they thought they would do it upfront so that the consumer does not get a bigger surprise when the final total gets the 3.99% added on to the total.

Patrons are divided by accepting the increase and two prices at Krugs. Some patrons accept the exact cost of each item and others complain that the prices are too high.

The fact remains that all restaurants here in New Jersey have credit card processing fees and most will add it to the total at the bottom of your check. So do not punish Krugs for having a different approach to making you, the patron, aware.

I admire Krugs for being transparent and giving me a choice of what method to pay instead of just raising all the prices to cover the card costs. The question then remains when paying with the card do you tip the server on the increased cost?

Looks like I opened a new assortment of problems. Good luck with that.

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Gallery Credit: Big Joe Jenry

The post above reflects the thoughts and observations of New Jersey 101.5 weekend host Big Joe Henry. Any opinions expressed are Big Joe’s own.

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