Dining out in the U.S. has changed fast since 2020, as restaurants added QR code menus, service charges and automatic gratuities alongside higher menu prices. In California, where Senate Bill 478 took effect on July 1, 2024, restaurants and other businesses faced new rules on how mandatory fees must be shown to customers. The result for diners nationwide is a meal that often involves a phone scan, a checkout screen and more line items than many people saw five years ago.
Restaurants added digital menus and more checkout charges
QR code menus spread widely in 2020, when dining rooms across the U.S. shifted operations during the Covid-19 pandemic and many operators tried to limit shared contact surfaces, according to National Restaurant Association reporting from that period. Toast, a major restaurant technology company, said in its 2024 Restaurant Trends Report that digital ordering and contactless payment remain common tools for operators. That means the menu is now often part of the payment system, not just a paper list on a table.
Service fees and auto-gratuities also became more visible as restaurants looked for ways to cover labor and operating costs. The Federal Trade Commission announced a final rule on junk fees in December 2024 for live-event tickets and short-term lodging, but restaurants were not included in that federal rule. In restaurants, fee practices have instead been shaped by state laws, local enforcement and company policy, which is why diners can see very different check formats from one city to the next.
The impact varies by state, and California became a key test case
California became the clearest state example in 2024 because SB 478 generally barred hidden mandatory charges starting July 1, 2024, after being signed in 2023. The California Restaurant Association said in June 2024 that a separate state budget trailer bill would allow restaurants to continue charging service fees if they are clearly disclosed. That left California diners with a rule many other states still do not have, even though restaurants in New York, Illinois and Washington also commonly use digital payment screens and preset tip buttons.
What is confirmed is that restaurants in California can still use service charges when they are properly disclosed under the updated state approach. What is not fully known is how many individual restaurants in Los Angeles, San Diego or San Francisco changed checkout language or pricing after July 1, because there is no statewide public count. Outside California, there is no single national database showing how many restaurants use QR-only menus, surprise fees or automatic gratuities.
The biggest drivers are labor costs, tech systems and disclosure rules
Labor remains one major reason restaurants changed how they price and present a meal. The U.S. Bureau of Labor Statistics reported that food away from home prices were up 4.1% over the 12 months ending May 2024, while limited-service and full-service operators continued to face wage pressure and staffing constraints. The National Restaurant Association said in its 2024 State of the Restaurant Industry report that operators were still managing higher food, labor and occupancy costs than before 2020.
For customers, that means the final bill often reflects both menu inflation and a more complicated payment setup. A diner may encounter a QR menu, a service charge, an automatic gratuity for larger parties and a tablet that suggests tip amounts before checkout, all of which are now standard features in many U.S. markets. Industry groups and state regulators have increasingly focused on disclosure, so the practical change for diners is not that every fee disappears, but that restaurants are under more pressure to show charges clearly before payment.
