There was a Bitcoin ATM down the street where I used to live, they used to charge $1,000+ per BTC when the average price was between $490-500
Of course they will charge more. Not worth it unless you want the anonymity.

This fee is ridiculously high, I don't think anyone will use it, this is about 100% fee. It doubles the price of that time, it is double fee. I feel atm it is useless due to the fee.
I think the reason this particular ATM was charging so much was because they never bothered to update the prices. That has got to be the reason.
Although I agree, they do cost an awful lot. Even outside of Bitcoin, ATMs are generally known for ripping people off.
I wouldn't say they are "useless" though, I saw many people using the ATM, to my surprise.