This proposal will significantly hurt restaurants in Fairfax City.
From my restaurant point of view customers will see this as a 12% tax. Currently Meals tax is 4% and Sales tax is 6%. Many customers already ask “How much are taxes”. The proposal increases Meals tax to 6% with a 6% sales tax- that makes 12%. The highest in the region. Many customers just look at the bottom line total. With this increase this makes our bottom line more expensive. This is how Fairfax City restaurants will be viewed. More expensive. The most expensive in
Northern Virginia. It is an unfair advantage to our neighboring communities.
Restaurants vulnerability is what makes us an easy target. All the restaurants combined in Fairfax City don’t put us in the top large businesses here. Yet we are the ones that are targeted. Unfortunately restaurants are always at risk. It is a different industry than it was 5 years ago, even 2 years ago. Labor is 25% higher than it was before covid. Food products and all other products probably average more than that. Restaurants have passed on some of the expenses but
can’t pass on everything to the customer. Our fixed costs only go up: Rent, gas, electric, water, trash, insurance, more insurance. These bill only increase. Restaurants need to be supported not taken advantage of.
The increase will cause harm to our industry. If it goes through Fairfax City will be known as “The Most Expensive”. That reputation will hurt the restaurant industry. “Most Expensive” will scare customers away. When restaurants lose customers they go out of business.
Not a good idea to increase meals tax
Bill Hamrock
Owner Hamrock’s Restaurant and Kelly’s Oyster House
Both in Fairfax City