A recent lawsuit has brought to light allegations of deceptive business practices at a popular San Francisco restaurant. The complaint, filed by Alexander Xue in the Superior Court of California, County of San Francisco on November 4, 2024, accuses Fisherman’s Wharf Sourdough French Bread Bakeries, Inc., which operates the Chowder Hut Grill, of scamming customers through hidden fees.
According to the verified complaint, Xue visited the Chowder Hut Grill on November 4, 2024. He claims that upon ordering a Garlic Dungeness Crab Sandwich priced at $19.95 as per the menu, he was surprised to find an additional charge labeled "SF EmpMnds" amounting to $0.80 or 4% of his pre-tax subtotal added to his bill without prior disclosure. This fee was allegedly concealed beneath the sales tax line on his receipt, leading Xue and potentially other customers to believe it was a mandatory governmental charge.
Xue argues that this practice violates several California laws designed to protect consumers from unfair and deceptive acts. The complaint cites violations of the Consumer Legal Remedies Act (CLRA), which prohibits advertising prices that do not include all mandatory fees unless clearly disclosed. Furthermore, it references Senate Bill 478 and Senate Bill 1524 amendments intended to curb such "drip pricing" tactics unless specific disclosure requirements are met.
The lawsuit accuses Fisherman’s Wharf Sourdough French Bread Bakeries of fraudulently increasing their profit margins by misleading customers with these undisclosed charges. Xue asserts that the fee's name "SF Employer Mandates" falsely implies a required governmental levy when it is not deposited with any governmental agency but rather benefits the restaurant's owners directly.
Xue is seeking various forms of relief from the court including actual damages for financial losses incurred due to these practices, punitive damages aimed at punishing and deterring such conduct in future instances, and declaratory relief confirming the illegality of these practices under California law. Additionally, he requests injunctive relief mandating proper disclosure of all merchant-imposed fees and an order requiring refunds for all improperly charged fees.
The case is being handled by Judge Sahar Enayati under Case ID CGC-24-619515. Xue is representing himself pro se in this matter.