Chicago restaurant operator Lettuce Entertain You has been served with a class action lawsuit, accusing it of allegedly improperly padding its profits by adding “deceptive surcharges and processing fees” to customer checks, “under the veneer of Covid-19 impacts.”
On Aug. 16, attorney James X. Bormes, of Chicago, and others with the firms Kerkonian Dajani, of Evanston, and The Khowaja Law Firm, of Chicago, filed suit in Cook County Circuit Court against Lettuce Entertain You Enterprises and its subsidiary, Do-Rite Tinley LLC.
Do-Rite Tinley operates the Do-Rite Chicken and Donuts shop in south suburban Tinley Park. It is one of seven Do-Rite locations in Chicago and the suburbs operating under the LEYE banner.
James X. Bormes
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According to the complaint, for at least the past two years, Lettuce Entertain You has allegedly added surcharges and fees of 3-4% to customers’ checks. However, according to the complaint, the company has not notified customers of the additional fees before adding them to their final bills.
The lawsuit was filed on behalf of named plaintiff James Maher, identified only as a resident of Cook County.
According to the complaint, Maher purchased food at the Do-Rite location in Tinley Park on Feb. 20, 2022. He claims the restaurant added a 3% surcharge to his bill, but did not tell him they were doing so until he learned of it from his purchase receipt, after paying for his food.
The complaint asserts LEYE and Do-Rite have added the fees as a way of adjusting to revenue losses stemming from the onset of the Covid-19 pandemic, but without appearing to raise prices.
“The costs of doing business across all markets have increased as a result of Covid-19,” the plaintiffs said in their complaint. “The restaurant industry has particularly been impacted.
“However, instead of factoring any increased operation costs into their pricing model (as every other industry has been forced to do) and simply adjusting the visible advertised price of their menu items so customers are informed, Defendants (LEYE and Do-Rite) regularly and unlawfully add these deceptive surcharges to their customers’ bills without authorization or notification.”
The plaintiffs accused LEYE and Do-Rite of violating the Illinois Consumer Fraud and Deceptive Business Practices Act, as well as counts of fraud and unjust enrichment.
The plaintiffs are seeking to expand the action to include anyone in Illinois who paid such LEYE surcharges since 2017.
The lawsuit is asking the court to order LEYE and Do-Rite to pay unspecified damages, including restitution and disgorgement of profits from the surcharges and fees, plus attorney fees.
In addition to Bormes, plaintiffs are represented by attorneys Catherine P. Sons, of the Law Office of James X. Bormes; Donald J. Pechous and Paul A. Castiglione, of the Khowaja Firm; and Elizabeth M. Al-Dajani and Karnig S. Kerkonian, of the Kerkonian firm.
A spokesperson for Lettuce Entertain You declined to discuss the lawsuit, saying LEYE does not comment on pending litigation.