Although many restaurants are still closed during the pandemic, CBS Los Angeles reported that dining and drinking are still a problem for restaurants that are still open-even forcing a restaurant owner in Los Angeles to close.
According to the Los Angeles Times, more and more city restaurants are struggling because scammers use Internet ordering to use fraudulent credit cards or request refunds, claiming that they have never received some or all of the orders.
The Korean fusion cafe “Spoon by H” has the elements of a success story in Los Angeles, but it is the epitome of a small business. The owner and chef Yoonjin Hwang works 1
Hwang said: “We don’t have employees. We don’t have a chef. I have to do everything by myself.” “Like many other small businesses, we have been hit by the pandemic. What we can do is like dealing with it every day, And do our best to make ends meet.”
However, as more and more restaurants receive takeaway orders online and through apps, they are facing a new challenge, namely “friendly fraud” or “rejection of payment.”In the scam Customers usually order food through a delivery service, and then receive the food, but dispute with the credit card company to charge a refund.
One day, Huang received the largest order in history at a price of more than 700 US dollars.
Hwang said: “He came, he picked up the food, and then a week later, he disputed the charges.”
She lost food and money, and it kept happening-over and over again.
She said: “I feel extremely helpless and frustrated. We just can’t continue to run our business like this.” Therefore, she decided to close the restaurant permanently. Saturday was set to be her last day, which disappointed her customers.
Client Alice Whitney said: “When I found out that the door was about to close, I just broke down.”
However, the customer saw her struggle and stepped in to help, raising more than $60,000 on the GoFundMe page.
Mr. Huang said: “I am happy to remind us that there are more benefits for the people around us and our community.”
Hwang plans to use the funds raised to repay the debt and said that she might consider using the income to start a new company one day, but she does not know when or what type of company.