"News Café" Closes

The popular downtown restaurant and bar in the Hotel Presidente, the "News Café", was shut down on Friday but not by Salud (Health) officials, but by its owners, who decided that too high the operating costs for them to pay the 10% gratuity of its wait staff, in wages.

Earlier this month, the Constitutional Court ruled that the 10% tip that is included by law on every restaurant and bar bill, forms part of the salaries of waiters, which dramatically increases the employer contributions to items like the social security (Caja).

The reasons for the closure was explained by Daniel Mikowski, general manager of the Hotel Presidente.

The News Cafe was a popular hang out for many foreigners, both visitors and living in Costa Rica, as one could sit at a table and watch passerby on the Boulevard.

The restaurant became popular with foreigners after its remodeling several years and for a time the kitchen under the management of a Canadian, who brought many popular North American dishes to the menu. The eatery was also very popular with the Tico lunch crowd.

In Costa Rica, restaurants and bars are allowed, by law, to add 10% to the check as a "propina" (tip). The 10% is for the wait and bar staff, which in many cases is much greater than the base salary.

The 10% was never part of the "regular salary" of the employee and thus was not included in the calculations for contributions to the Caja or the payment of "Aguinaldo" (Christmas) and other bonuses.

The Constitutional Court ruling, however, included the 10% in the basic salary which means higher operating costs for the owner of the restaurant and/or bar