The cheeseburger at Krug’s Tavern is the stuff of legend. It was named New Jersey’s best burger by NJ.com back in 2015, but frequenters have been making the trek to Newark for much longer than that. The Ironbound institution has been open since 1932.
There are eight different types of burgers on Krug’s menu. More interestingly, each burger now has two different prices. Every menu item does, and it has nothing to do with the size of the dish. It’s all about how you pay.
Cash or credit.
“We want to be upfront with the customers,” manager Joyce LaMotta, whose family has owned Krug’s Tavern since it opened, told NJ Advance Media this week. “We want them to know as soon as they see the menu. We don’t want anything hidden.”
It has become common for restaurants in New Jersey and beyond to charge a fee when customers pay with credit card, often noting the surcharge at the bottom of the menu or on the receipt at the end of the meal. The surcharge is typically to offset fees restaurants have to pay to credit card companies to offer the payment option to customers.
Gov. Phil Murphy signed a bill into law in 2023 that requires restaurants post information about credit charges before consumers pay for service, and makes it illegal to profit off of credit card charges.
Krug’s decided if it was going to charge more for paying by card, they were going to be completely transparent. Two prices are listed below every menu item is listed, both cash and credit, like a gas station.
At the bottom of the menu is also a note about the policy. “Our business uses a standard dual pricing format. At the time of purchase there will be a cash or credit payment option,” the note reads.
One of Krug’s vaunted cheeseburgers will cost you $13.50 if you pay with cash, but $14.04 if you use a credit card. Every menu item costs 3.99% more if you pay with card — to offset the 3.99% fee credit card companies charge Krug’s to process the payment.
“When you’re getting a beer for $4 and you’re charging it, we have to pay the credit card processing fee,” LaMotta said. “You’re using a credit card for convenience, I guess. But I mean, it’s costing us so much more money.”
The menu at Krug's Tavern in Newark, featuring both cash and credit prices for menu items.Image via Krug's Tavern
LaMotta says Krug’s implemented the cash/credit pricing policy during the COVID-19 pandemic. They’ve received mixed feedback on the policy — some customers hate it, others don’t mind it.
“Some people complain. Some people say they’re not coming back,” LaMotta said. “And a lot of people pay cash.”
Most customers still pay with credit card, LaMotta said. And the LaMotta family feels this is the best policy for the bar. They rather do this than up prices across the board to pay for the fees. The way LaMotta sees it, Krug’s isn’t charging more for credit card payments. They’re offering a cash discount.
“We could just up the prices to cover the credit card fees, the credit card fees are just ridiculous,” LaMotta said. “For us, we try to keep our prices low and keep everything manageable while everything’s skyrocketing.”
It is unclear if any other restaurants around the state use a such a transparent dual-price policy. But LaMotta said the way Krug’s does it simply makes sense to her and her family.
“Every business is their own,” LaMotta said. “I like to have everything just out there for the customer to read.”
Related coverage:
• What is a ‘kitchen appreciation fee’? Why this N.J. restaurant charges customers extra.
• N.J. restaurants rejoice as controversial customer fee is removed amid backlash
• N.J. restaurants furious as take-out orders just got more expensive for customers
• Businesses can’t profit from credit card surcharges, must tell customers, under new N.J. law
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Jeremy Schneider may be reached at jschneider@njadvancemedia.com and followed on Twitter at @J_Schneider and on Instagram at @JeremyIsHungryAgain.
