Korean American restaurant owners in Los Angeles say they are suffering growing losses from customers who leave without paying and from fraudulent credit card chargebacks. Most cases occurred in Koreatown, with additional reports in Burbank. Owners add that confronting non-paying customers can sometimes escalate the problem, leaving them little choice but to accept the loss.
At All You Can Eat Sushi & BBQ (owner Chris Han), two customers tried to leave without paying last week. When challenged, they claimed a card was on the table. By the time staff attempted payment, the pair had fled and the card was declined, possibly because it had been reported lost. Earlier this month, a group of 11 diners left only five people to pay, while the remaining six refused, saying they had eaten little and service was poor. The loss totaled about $200.
Han said similar incidents happened at least seven times this year: three men ran out in January, followed by another case involving three people who appeared to be a family. Two more incidents occurred in February, and in June four men promised to retrieve cash from a car and never returned. “It usually happens late at night near closing,” Han said.
At Yuchun Naengmyeon (owner Jenny Jung), three young Asian women recently slipped out without paying. In March, three Asian men ordered about $160 of naengmyeon (cold buckwheat noodles), galbi (grilled short ribs), and mandu (dumplings), then left a broken phone as collateral after saying they forgot a card. They never returned. “Incidents occur about once a month, and police rarely pursue them, so we take the loss,” Jung said.
In Burbank, seafood restaurant owner Mr. Park reported six chargebacks—two last year and four this year (February, March, May, June). After checking emails and phone numbers, he found they appeared to involve the same person. “These are clearly malicious chargebacks, but there’s no way to stop them,” Park said.
In Koreatown, Hyunju Cho, who runs Kimbap Heaven, said one or two online orders each month are canceled through chargebacks. “It’s no different from dine and dash,” Cho said. Each case also adds a $25–$30 processing fee. If an $80 order is reversed, the restaurant loses about $110.
Under California Penal Code [CPCS537], failing to pay for a meal is a criminal offense. For $950 or less, penalties can include up to $1,000 in fines or six months in jail. For more than $950, penalties can reach three years in prison.
BY HANKIL KANG [kang.hankil@koreadaily.com]
