Let’s Discuss: Do You Mind Paying Extra for Take-Out Containers?

This picture is not representative of Velvet Taco. Stock photo of take-out containers.

Listen up all of you people who don’t mind recycling or rescuing, we’ve got a situation we need to discuss. A SideDish reader brings up the “green tax” charged for take-out containers at Velvet Taco.

I had lunch at Velvet Taco for the first time today.  When we ordered, we noticed on the menu that there was listed a “10% Green Tax” on takeout orders.  I snickered at the brazen attempt to make additional money off of imaginary concern for the environment, never having seen such a fee before.  (Perhaps it’s common and I’ve just never seen it at another establishment?) But thinking about it today and beyond the mere ridiculousness of a fast-casual dining spot charging more for those taking their food elsewhere, I can’t help but wonder if Velvet Tacos is violating any law. I haven’t researched the issue, but I wouldn’t be surprised at all if it were illegal for a business to call a “tax” (implying mandated by the government) any privately-imposed and discretionary fee. It certainly seems to rise to some level of deceptive trade practice to call this sort of greedy and unnecessary fee a “tax,” as it seems like a term which could very easily confuse even intelligent diners about who was mandating the charge.

Before I hand this issue over to John Franke of Velvet Taco, let me put in my Nichols’ worth. I don’t find the practice of charging for container ridiculous. Especially when said containers are made from more expensive ‘green and compostable wares that, according to one industry person I asked, can cost up to $3.00 an order. (Another in the fast food expert said:  “to-go containers are direct expense of about 4% of [our] sales (in a $400 million company, that’s an eye-opening $16 million non-recovered expense) that was spent directly on to go supplies.”

On the other side, people who take food away from a restaurant don’t require the labor of a server or busser or any of the other costs a place incurs when a customer dines in (big flush, little flush!). Also, the charge at Velvet Taco  is not a state-sanctioned “tax,” it’s a term they chose to use in place of  “upcharge” and the 10% is based on the pre-sales tax amount.

Below, John Franke, the head of operations at Velvet Taco replies to the reader’s question.

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