The 3% “Employee Benefits & Retention” charge
Late in August 2025, customers at several Dunkin’ franchise locations discovered an unexpected line item on their receipts: a 3% surcharge labeled “employee benefits & retention charge.” The charge appears automatically for card payments and is described on the receipt as “not gratuity” but instead directed toward an “employee retention program”. Many patrons voiced frustration that the fee was neither advertised in-store nor disclosed before payment. One New Jersey customer posted on Facebook: “I mean, ask me or tell me so I can make a decision,” highlighting the sentiment that such a fee should be built into menu prices rather than tacked on post-purchase.
Although Dunkin’ corporate has yet to clarify whether this surcharge will roll out chainwide, reports suggest store-level decisions have driven its appearance. Critics argue that embedding labor and benefits costs directly into menu pricing would be more transparent and avoid “surprise fees” that erode consumer trust.
Nondairy milk substitution upcharges
Before March 2025, customers who requested soy, oat, almond, or coconut milk in their drinks were routinely charged an extra fee ranging from $0.50 to $2.15 per order to cover higher ingredient costs. A 2024 class-action lawsuit accused Dunkin’ of discriminating against lactose-intolerant and milk-allergic customers by creating a separate, pricier menu for dairy alternatives.
Although Dunkin’ eliminated the upcharge in March 2025 following negative publicity and customer feedback, the precedent underscores how seemingly small fees can inflame consumer sentiment and spur legal challenges.
Mobile-app “Butter Alternative” fee
Digital ordering has introduced its own set of hidden costs. Patrons using Dunkin’s mobile app sometimes face a $0.55 “butter alternative” surcharge when ordering bagels or breakfast sandwiches with spread options labeled as “butter alternative” instead of traditional butter packets.
As one Reddit user discovered, the app poorly displays this upcharge, leading to confusion at pickup: “I didn’t notice until I saw my total was exactly $0.55 more than listed on the menu,” they wrote. Store staff were reportedly unaware of the fee’s origin, further fueling customers’ ire over opaque digital charges.
Customer backlash and calls for transparency
Across social media platforms, Dunkin’ customers have united in voicing disapproval of these surcharges. Common themes include:
- Lack of upfront disclosure: Consumers demand that any fee appear on menu boards or order screens before payment.
- Trust erosion: Hidden fees, regardless of their stated purpose, are seen as exploitative, diminishing brand loyalty.
- Preference for inclusive pricing: Many argue that Dunkin’ should adjust base prices to cover labor, ingredients, or digital infrastructure rather than itemizing “convenience” or “wellness” fees.
One commenter on Reddit compared these practices to cable-TV billing: “Here’s the price, plus a required box fee, channel guide fee, local channels fee…” illustrating how fragmented charges can feel like corporate nickel-and-diming.
Industry trends and regulatory attention
Dunkin’ is not alone in experimenting with surcharges. Restaurants nationwide have tested wellness fees, service charges, and digital-order fees to offset rising labor and operational expenses. However, the backlash at Dunkin’ underscores a broader industry lesson: transparency is paramount when adding any fee.
Consumer-protection advocates warn that undisclosed surcharges may violate state “truth-in-menu” laws, which require full price disclosure. Several jurisdictions are already considering legislation to mandate that all mandatory fees be included in advertised prices.
Best practices for Dunkin’ and Beyond
To restore customer goodwill and comply with regulatory expectations, Dunkin’ (and other chains) should consider:
- Bundling costs into menu prices: Integrate labor, benefits, and ingredient costs into item prices rather than separating them as surcharges.
- Clear in-store and digital disclosures: Ensure any mandatory fee is prominently displayed on menu boards, receipts, and app order screens before checkout.
- Customer education: Offer clear explanations of why fees exist, demonstrating how revenue supports workers or enhances service, thereby fostering understanding rather than resentment.
As chains navigate the challenges of rising costs, the Dunkin’ surcharge saga provides a cautionary tale: consumers may tolerate higher prices, but they will react strongly to hidden fees that undermine transparency and trust.
