Case Overview: A class action lawsuit accuses Applebee's of adding hidden delivery and service fees at the final stages of online and app-based orders, misleading customers about the true cost.
Consumers Affected: Consumers who ordered delivery from Applebee's through their website or app.
Court: U.S. District Court for the Northern District of California
A new lawsuit accuses Applebee’s of misleading customers by concealing multiple delivery-related charges on its website and app. The case centers on how fees are presented during the ordering process and whether customers are paying more than they expect once all charges are revealed.
Plaintiff Michael Drake brought the case to a federal court in California, alleging that Applebee’s is violating both federal and state consumer protection laws.
Drake claims that Applebee’s applies several undisclosed fees to food delivery orders, including a “delivery charge,” “service fee,” and a “CA delivery surcharge.” According to the lawsuit, these amounts only appear on the final checkout screen, after users have customized their orders and are ready to make a payment.
“Applebee’s prominently advertises pricing that is drastically altered by the time the payment screen populates,” the complaint states.
Consumers using Applebee’s digital platforms may believe they are paying the price listed in the menu, Drake argues. Instead, near the end of the transaction, added charges surface and inflate the total cost without adequate warning or explanation.
The lawsuit describes this pattern of fee application as “surreptitious,” with the intent of generating supplemental revenue while limiting consumer visibility until the point of purchase.
The complaint draws attention to one specific charge: the “CA delivery surcharge.” While it appears to reference a statewide mandate, the lawsuit alleges that the fee does not reflect any actual government regulation or tax.
Drake asserts that labeling the fee this way misleads customers into believing it is externally imposed, when in fact, it is controlled by Applebee’s.
He further claims that by separating the “delivery charge” and the “CA delivery surcharge,” Applebee’s is effectively charging twice for the same service. The lawsuit paints these fees as unnecessary and unsupported by any additional benefit to the customer.
In addition, the “service fee” is included in the same category. Drake contends that neither the “service fee” nor the “delivery charge” correlates with any enhanced features or improvements.
Delivery app users may believe the prices they see up front reflect the full cost of their meal, minus taxes. According to the lawsuit, Applebee’s diverges from this assumption by reserving the addition of multiple fees until the very last screen.
This practice, the plaintiff says, puts Applebee’s at an unfair advantage over competitors who show a complete breakdown of pricing earlier in the order flow. Consumers who make purchasing choices based on visible pricing may unknowingly incur more charges than anticipated.
Drake notes that these fees can influence how much people are willing to spend on their meals. Consumers expecting a meal to cost $25 might ultimately pay several dollars more, a margin that could affect purchase decisions if disclosed earlier.
Applebee’s joins a list of food service brands facing legal scrutiny over extra charges in digital sales channels. Earlier this year, Shake Shack was taken to court for allegedly hiking prices through undisclosed fees on digital orders.
In a separate complaint filed this year, a group of McDonald’s customers claimed they were misled about orange juice pricing in breakfast meal combos. While the menus appear to include the beverage, the lawsuit alleges customers are later charged more when completing their purchase.
These cases suggest a growing concern among consumers regarding how platforms present final charges at checkout, particularly when ordering food through apps and websites.
In the Applebee’s hidden fees class action lawsuit, Drake is asking the court to approve the case as a class lawsuit, representing others across the U.S. who ordered delivery through Applebee’s website or app and were subjected to the unexpected add-on fees.
Besides requesting a jury trial, Drake is seeking damages, attorneys' fees, and costs incurred in bringing the complaint.Drake’s complaint requests that Applebee’s revise its checkout processes to make all delivery charges visible earlier in the transaction. By doing so, consumers would receive full pricing information before finalizing their orders.
The case awaits decision on class certification and any action the court might direct. For now, Applebee’s customers may begin to review their past digital orders more closely to see how fees were applied and whether they felt fully informed at the time of purchase.
Case Details
Plaintiffs' Attorney:
Have you ordered delivery from Applebee's online or through their app? Did you notice any unexpected fees? Share your experience below.
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