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The problem is that the '%f%' is a static/constant value and not a parameterized one. That means each time the user presses a key the SQL server must recompile the query/plan as the filter is hard-coded. If the filter was parameterized, it would only have to compile the query/plan once and change only the parameter that is passed in with it.
Additionally (and probably even more important) using parameterized queries protects against injection attacks:
As I am guessing you already have something like this on your end, I am primarily interested in the performance benefits. :)
Please let me know of any questions you have and I will assist you.