Toronto pizza chain raises eyebrows for charging carbon fee on bills

A Canadian pizza chain has got people talking — not about what’s on the menu — but for charging a 2 per cent carbon fee on all of its bills.

Goodfellas Wood Oven Pizza has several locations around the Toronto area. While the restaurant has received a myriad of positive reviews online, some visitors have pointed out the eatery has been charging an extra fee on its bills.

“BUYER BEWARE!!! They are adding on to your bill an EXTRA 2 per cent carbon tax that makes NO MENTION of before seating us,” said one person in a Trip Advisor review dated January 2024.

“Had we been told this BEFORE being seated, we would’ve walked out,” they said.

“Good good, great service but they added a cash grab disguised as a 2 per cent carbon tax,” wrote another person on Yelp, sharing a picture of their bill and confirming the extra charge.

“What we eat fuels climate change,” reads a statement at the bottom of the receipt. “Adding 2 per cent to every restaurant bill to invest in carbon capture will help offset our carbon footprint.”

Goodfellas directs customers to its website to learn more about its policy.

Yelp/Screenshot

Carbon fee is not illegal

The company’s webpage reiterates its commitment to the environment.

“Goodfellas uses certified D.O.P products from Italy to remain true to the brand, it’s not always possible to buy local.”

“To offset our carbon footprint, we will be supporting Tree Canada’s National Greening Program which plants trees in areas that need reforestation.”

The website does not confirm whether the 2 per cent fee charged on bills is being directly used to support the restaurant’s pledge to Tree Canada.

While the 2 per cent carbon fee is causing a stir amongst some customers, it is not illegal.

Julie Kwiecinski, the Canadian Federation of Business’ director of affairs for Ontario, explained that businesses are allowed to add fees to bills as long as they don’t refer to them as a “tax.”

“It’s an individual business choice. This is no different than an individual business showing a recycling fee on a receipt… or a COVID cleaning fee on a receipt during the pandemic,” she noted.

Kwiecinski credits Goodfellas for going “above and beyond” for its transparency around the 2 per cent charge, explaining that businesses are not required to show or mention how they are using the fees they collect.

“They just didn’t say it’s an environmental initiative. They have a little line at the bottom of their bill, they say it’s a 2 per cent carbon fee.”

She added that the restaurant’s noting that it supports Tree Canada is an example of its open communication with customers.

While some customers may not be too happy with the fee, Kwiecinski emphasized that there’s a much bigger issue at play with Canadian businesses and the carbon tax.

“Right now, if you are a business in Ontario, you are owed $1.3 billion in past carbon tax revenues from the federal government going back five years,” she said.

“The total for Canada is $2.5 billion. So it’s a big issue for businesses … because people have been getting their cheques, businesses haven’t.”

Kwiecinski added that the country’s carbon tax rebate system is an “unfairness that needs to be fixed.”

Goodfellas did not respond to a request for comment before publication.