Service Charge at Restaurants: Opinion Shared
We are pleased to share with you that your collective voice on Service Charge at restaurants has been communicated to the Department of Consumer Affairs. The recommendation is to eliminate Service
Charge completely and if that's not feasible atleast an option is given to the consumer in the invoice.
The same has been shared via media for broader awareness:
Business Standard/IANS - http://bit.ly/localcircles-bs-svcchrg
DNA/ANI - http://bit.ly/localcircles-dna-svcchrg
If you have latest experiences at restaurants on this, please do share!
We look forward to fast closure by the Government on this. more
Charge completely and if that's not feasible atleast an option is given to the consumer in the invoice.
The same has been shared via media for broader awareness:
Business Standard/IANS - http://bit.ly/localcircles-bs-svcchrg
DNA/ANI - http://bit.ly/localcircles-dna-svcchrg
If you have latest experiences at restaurants on this, please do share!
We look forward to fast closure by the Government on this. more
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View all 27 comments Below 27 comments
It is very much possible to completely abolish the term "Service Charge" not only in the hotels and restaurants but also in all other services including that of professionals like doctors and advocates as their fees covers everything. Service charge has no place in the transaction of a business as the cost is inclusive of delivery charges. It is also wrongly charged by the newspaper vendors from the consumers, besides their getting a good 30%-35% for distribution from the publishers. The vendors charge not by declaring it as a service charge, but their bills are inflated. more
Feb 16
It is a racket Even some itsy bitsy Restaurants ( not all) has the temerity charge 10% towards service charge which is way above what the government earns towards service and other taxes--irrespective of the quality of service one gets-and if questioned gives an explanation that Restaurant Associaition has ratified this charge with a rider that as long as it is mentioned in the menu card or displayed in the restaurant that they can charge any service fees upto I think 15% of the bill amount. I have had several bad experiences with Cream Centre ( at Phoenix Mall outlet to be precise) a chain of Restaurants in Mumbai whose management had the audacity to express that if a customer finds the service fees unacceptable he/she is free not tovisit the restaurant. To me this service fee concept seems absurd-a sit down restaurant always charges higher than takeaways obviously meaning such costs are built in the price-and there is no justification why a customer should additionally have to bear such a duplicate cost under a different heading.Do restaurants pay tax on such additional income or is it conveniently passed off as a deductible expenditure.? Finally under what authority can Restaurant Association determine an action aimed at nothing but fleecing the customer direct their association members to follow such an unprincipled parctice? more
Feb 12
As it is in India the serves in each item on the menu is getting smaller and the charges for each item is increasing. With a random service charge being mandatory on bill this will only make matters worse. more
Feb 11
Different types of charges and taxes burdens the customers which deters them to enter a big restaurant or shop for the second time. Charging moderately would fetch more through more sales; prudence over cleverness must be counted. more
Feb 10
