Suit claims Twin Cities restaurant group breached price transparency law

Kaskaid Hospitality Inc. fails to properly warn its diners about credit card fees until the bill is delivered, according to a lawsuit filed Tuesday.

The Twin Cities restaurant group, which runs popular establishments like Crave and Brit’s Pub, is accused of breaking a new state law meant to increase price transparency.

Restaurant owner Kam Talebi said Wednesday he was disappointed by the claims outlined in the lawsuit, saying his establishments fully comply with Minnesota’s law.

“This blindsided us,” Talebi said. “We’re doing everything that we’re supposed to do.”

The lawsuit was filed in Hennepin County on behalf of Lucianna Baregi, a customer who says she was forced to pay an extra $2.25 for dinner and cocktails at Crave’s downtown Minneapolis location.

Baregi says she had a meal with friends and family at Crave on June 1. When her bill came, a $2 “miscellaneous” charge appeared beside the blood orange margarita, pineapple mojito, traditional poke bowl and double smash burger.

After taxes, her bill came out to $108.69, with the fee. Baregi claims she did not see an earlier notice of the charge until the bill came. Under the modern digital payments of today, a restaurant patron “cannot reasonably be expected to pay cash,” the lawsuit said.

Nathan Prosser, an attorney representing Baregi, said a restaurant that delivers a last-minute, not-previously-disclosed fee at the table is breaking the law. He said other area restaurants have taken steps to comply with the law, including some who put up a sign or add a disclaimer in small font on the menu.

On its own, Prosser said, a $2.25 charge is not a big deal. But those fees add up to a substantial amount over many customers and transactions.

Included in the lawsuit is a request for a judge to approve a class-action suit on behalf of customers who paid a previously undisclosed fee while dining at one of five restaurants Kaskaid runs — Crave, Union Rooftop Bar & Grill, Brit’s Pub, Blvd Kitchen & Bar, and The Butcher’s Tale — beginning Jan. 1.

Kaskaid is accused of unjust enrichment as well as violating the state’s Deceptive Trade Practices Act and Consumer Fraud Act.

Talebi called the allegations “absurd” and “disheartening,” saying signs are clearly placed for customers to see.

“It’s a money grab,” he said. “And I’m incredibly disappointed, and I’m incredibly pissed off.”

Minnesota’s price transparency law took effect in January. State lawmakers took up the issue in response to the growing amount of so-called “junk fees,” surprising Minnesotans at the checkout line.

The new law is meant to address hidden charges that have increased the prices of everything from concert tickets to restaurant bills. Under the changes, the fees were listed on Minnesota’s Deceptive Trade Practices Act, forcing mandatory fees and surcharges to be included in the upfront list price of goods and services.