Service Charge in restaurants
Had an argument at a CP restaurant yesterduy where they had this attached on table saying service charge is for serving you on table to which I said that then Are you a grocery store? The manager was a bit shocked and couldnt handle then I googled and found this report below saying 37% ppl havent paid service charge. Anyways he thought i knew the subject and therefore gave me a discount. My question is why many of these restaurants are still messing around and forcing service charge waiting for us to fight back? Its a bit upsetting while having meal that we will have to argue for service charge at the end. Govt needs to do more via states and directly.
The number of people who did not pay or refused to pay the service charge at restaurants has increased, according to a recent survey that revealed a hike in the number to 37 per cent in January from 35 per cent in November. The survey, conducted by Local Circles -- a social engagement platform -- said it interviewed 8,013 people, who visited air-conditioned restaurants in January, for their experience with the service charge.
"In response, 27 per cent said restaurants did not charge it, 10 per cent said restaurants charged and they got it removed, 27 per cent said restaurant charged and they paid it while 36 per cent did not pay much attention to their bills," it said in a statement.
"The month-on-month stats show that although the percentage of restaurants not charging service charge is showing a constant increase, the percentage of people getting it removed has become almost constant," it added.
New Delhi: The number of people who did not pay or refused to pay the service charge at restaurants has increased, according to a recent survey that revealed a hike in the number to 37 per cent in January from 35 per cent in November. The survey, conducted by Local Circles -- a social engagement platform -- said it interviewed 8,013 people, who visited air-conditioned restaurants in January, for their experience with the service charge.
"In response, 27 per cent said restaurants did not charge it, 10 per cent said restaurants charged and they got it removed, 27 per cent said restaurant charged and they paid it while 36 per cent did not pay much attention to their bills," it said in a statement.
"The month-on-month stats show that although the percentage of restaurants not charging service charge is showing a constant increase, the percentage of people getting it removed has become almost constant," it added.
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The percentage of people, who did not pay service charge at restaurants, stood at 35 per cent in November, 30 per cent in August and 27 per cent in May, it added.
The Ministry of Consumer Affairs had called it an unethical business practice and directed restaurants to remove the service charge component from bills.
It said the trend of the gradual increase could have occurred either due to the strict warning by the government or due to the empowerment of consumers.
The development means the ministry "would need to do much more to make consumers aware and empower them further on this issue", it said.
https://www.ndtv.com/business/37-of-consumers-do-not-pay-service-charge-at-restaurants-says-survey-budget-1812315 more
The number of people who did not pay or refused to pay the service charge at restaurants has increased, according to a recent survey that revealed a hike in the number to 37 per cent in January from 35 per cent in November. The survey, conducted by Local Circles -- a social engagement platform -- said it interviewed 8,013 people, who visited air-conditioned restaurants in January, for their experience with the service charge.
"In response, 27 per cent said restaurants did not charge it, 10 per cent said restaurants charged and they got it removed, 27 per cent said restaurant charged and they paid it while 36 per cent did not pay much attention to their bills," it said in a statement.
"The month-on-month stats show that although the percentage of restaurants not charging service charge is showing a constant increase, the percentage of people getting it removed has become almost constant," it added.
New Delhi: The number of people who did not pay or refused to pay the service charge at restaurants has increased, according to a recent survey that revealed a hike in the number to 37 per cent in January from 35 per cent in November. The survey, conducted by Local Circles -- a social engagement platform -- said it interviewed 8,013 people, who visited air-conditioned restaurants in January, for their experience with the service charge.
"In response, 27 per cent said restaurants did not charge it, 10 per cent said restaurants charged and they got it removed, 27 per cent said restaurant charged and they paid it while 36 per cent did not pay much attention to their bills," it said in a statement.
"The month-on-month stats show that although the percentage of restaurants not charging service charge is showing a constant increase, the percentage of people getting it removed has become almost constant," it added.
by Taboola Sponsored Links .
3 million kids are learning English with this App. 30-Day-Free-Trial
Download on the App Store | Lingokids App
The percentage of people, who did not pay service charge at restaurants, stood at 35 per cent in November, 30 per cent in August and 27 per cent in May, it added.
The Ministry of Consumer Affairs had called it an unethical business practice and directed restaurants to remove the service charge component from bills.
It said the trend of the gradual increase could have occurred either due to the strict warning by the government or due to the empowerment of consumers.
The development means the ministry "would need to do much more to make consumers aware and empower them further on this issue", it said.
https://www.ndtv.com/business/37-of-consumers-do-not-pay-service-charge-at-restaurants-says-survey-budget-1812315 more
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Another point of relevance is to study and reveal the facts as to why the Restaurants are interested in charging the service charge separately and why not include in the price of the dishes or commodities when the price fixation is the prerogative of the restaurant management. There must be something hidden about such practices which we are unable to make out. In simple words say the price of the dish is Rs. 200/- and the restaurant want to charge 15% as service charges, the price to the consumer would be Rs. 230/-. I would like to know as to what it prevents or what is that he is being motivated to levy of charge of Rs. 30/- under the separate head of service charges instead of fixing the price of the commodity as Rs. 230/- more
Feb 21
Sir, As far as service charge is concerned, the Restaurants are already free to fix the prices of the commodities being served by the Restaurants. These prices are so exorbitant and one of the aspect in the dining is that the dishes would be served to the diners with amenities and ambiance. Hence the restaurants are aware that the dishes would be served and therefore would require staff to serve commonly called as waiter and therefore have factored their cost while fixing the prices of the commodities. The charging of any service charge in addition to the prices of the dishes become unethical business. More soever, the service charge which is commonly known as 'tip' is paid by the diner out of its sweet will depending upon the type of services extended. The quantum of the tip depends upon the factor that how much the diner has been happy with the services. Now the question is under what manner the restaurant can guarantee the level of service and ensure that the guaranteed level of service has been extended or not. If the service charge is fixed as %age without any relevance to the level of the services, it need to be treated as part of the cost of the dishes and who knows as to how the prices of the commodities or the dishes have been fixed. Hence if at all the service charges are to be charged it should be with well laid guaranteed service level in a published manner else there is no justification in charging service charges. The 'tip' is an optional item and can be paid by the diners if they so wish. If the service charge is being treated as compulsory, then the Govt. need to fix the quantity as well as price of the dish that any restaurant can charge and that need to be at par in all the restaurant, the only variable could be only the %age of service charge that can be fixed by the restaurant depending upon the level of service and ambiance offered by the particular restaurant. more
Feb 21
Against 'Service Charge' we need aggressive publicity through audio visual media. On the highways, there must be big bill boards at the entry and exist points against the Service Charge as also against the overcharging MRP - by deleting the print on the labels/menu carads and putting up stickers beside the charging of GST on the discounted MRP. more
Feb 21
Statistics as quoted by Ms Shivani indicate a rather slow rise in the number of those who refuse to pay the service charge. What may be the reason for that? Imagine that a majority of restaurant visitors are business people who entertain their clients at their employers' cost and couldn't be bothered about whether service charge is levied or not. They are not paying the bill from their own pockets. The arguments put forward by the NRAI that the service charge helps their staff including their families; they say it's not illegal and is protected by contract law. If that be the case, is the Department of Consumer Affairs right in asking restaurants not to levy service charge? Some knowledgeable expert needs to check this out. Having said that, you do come across more than many outlets in Delhi itself which openly put up a signboard at the entrance that they do levy service charge. And they have customers queing at their doors for entry. Is this now a case of "demand and supply"? more
Feb 18
Restaurents providing hospitality services are required to be cordial to its customers and charging anything in dispute is not in decency. Their objectives are merely on profit making. We therefore should think how they would be cooking the dishes? Better avoid such restaurants and there is no logic in blaming any authorities. more
Feb 17
