Fat bill at Fatburger

fatburger1Have you met anyone who enjoys being nickel-and-dimed? Do you know anyone who embraces unexpected add-on charges? Of course not. That’s because these business practices are irritating.

Last week, I brought my family to Fatburger to enjoy a good hamburger (their burgers are delicious). Since this was my first time at Fatburger, I was especially attentive to things like cleanliness, customer service, value for price paid, etc.

I spotted a sign near the register promoting kid’s meals for $5.59. This included a hamburger, fries, and a drink. Since three of my four children were interested, I placed an order for three kid’s meals with plain cheeseburgers, fries, and chocolate milks.

When I received the total, I immediately felt like it was too high (not the sort of reaction you want customers to have in response to their bills). After paying, I joined my family at one of the booths and began scrutinizing the receipt (again, this is not the sort of reaction you want customers to have after completing their purchases).

After adding up the cost of the $5.59 kid’s meals that I ordered, each totaled $7.36 before tax.

Here’s the breakdown from the receipt:

$2.79 Hamburger
0.79 Cheese
1.69 Chocolate milk
2.09 Fries
$7.36 Total

That’s $1.77 or 32 percent more per meal than I expected to pay! I felt nickel-and-dimed by the unexpected add-on charges. When I approached the manager during my meal to inquire about the charges (yet another reaction you don’t want customers to have), he graciously refunded me one dollar for each kid’s meal I purchased.

Now, I suppose a Fatburger representative would point out my own negligence in either overlooking the menu’s fine print (something else that irritates most customers) or failing to inquire about the price differential when ordering chocolate milk as opposed to a soft drink.

But she would be missing the point.

You don’t win these types of debates with customers. And even if you score more debate points, who cares? The customer ultimately decides who the real winners are because, in business, winning is influenced by factors such as repeat purchases, referrals, and other characteristics of loyal customers.

Personally, I am loyal to Chipotle Mexican Grill. Like Fatburger, Chipotle has clean restaurants and an amazing product. But unlike Fatburger, I’m not surprised by unexpected add-on charges and don’t feel compelled to scrutinize their receipts.

When I order a burrito with cheese and sour cream, the price doesn’t change. And if I order guacamole, the server will always announce the extra charge and gain acceptance before adding it to my burrito—avoiding an unpleasant surprise at the register.

In spending my discretionary income to dine out at a quick service restaurant, I will choose fat burritos with no surprises over fat bills with unexpected add-on charges.

How about you? Why do you choose to spend where you spend?

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  • DS

    My buddy and I recently got nickle and dimed with the same thing by the Fatburger on the Vegas strip. We had never been there before.

    Pretty good food, but all the hidden charges kind of gave me a bad taste. We thought they can probably pull this off as Vegas has tourists everyday so you do not have to build big loyalty. This is more of a problem for other locations which are more reliant on repeat business and customer loyalty. Not a good customer move by Fatburger.

  • http://www.stevecurtin.com Steve

    DS, thanks for your comment. I hear you regarding the customer traffic in Vegas. Even so, if Vegas is your first experience with a brand and it goes badly due to poor value, quality, service…whatever, what’s the likelihood that you would return to that brand in your home town? My point is that Fatburger has an opportunity to make positive lasting impressions on hoards of Vegas customers who will then return to their home towns seeking out Fatburger locations and spreading the good word to friends and colleagues. Of course, if the location is abused and the perception is that it’s nickel-and-diming Vegas customers who are a bit more free-spending, then it may have the opposite effect.

  • DS

    Totally agree with you Steve.

    This did give us a bad first impression and perception on Fatburger. We do not have one in our home cities so we were joking that they could get away with that doing it to tourists on the Strip, but it would be a bad practice to do on customers you are hoping to get back and those who do have Fatburger locations in their hometowns would probably feel a little burned.

    I agree that this particular Fatburger on the Vegas strip really has a chance to enhance the brand nationwide for all the tourists passing thru but their pricing practices are doing the opposite and hurting the overall brand. Not having one in my home city I was not thinking of it that way, but this certainly does not help the overall brand which is not good if you are Fatburger. Good article Steve!