Tipping point: The restaurants scrapping ‘discretionary’ service charge
4 years, 8 months ago

Tipping point: The restaurants scrapping ‘discretionary’ service charge

The Independent  

On 7 May this year Jeremy King, co-founder of the London-based Corbin and King restaurant group, made an impassioned plea to all the customers on the mailing lists of their restaurants, which include The Wolsey, Fischers, Brasserie Zedel and The Delaunay. The tronc system is the “discretionary service charge” you find at the bottom of your bill – typically 12.5 per cent if you’re in London and 10 per cent outside – which is distributed between restaurant staff. “This idea of ‘discretionary’ service is unique to hospitality,” Kiazim continues – and, as Charles Tyler of Paladar, a Latin American restaurant in south London points out, it’s also unique to the UK. We should be able to pay our staff decently without relying on an optional service charge to make up their wage.” open image in gallery Tyler worries that when VAT goes back up to 20 per cent, it will make dishes like this sea bass tiradito seem more expensive For Kiazim, one of the main sources of the confusion with service charge – at customer and government level – is around tips. The furlough scheme brought into focus the issues around the tronc or service charge – and I think many people would like to make this change and stand up for those working in hospitality.” Like Carver at the Cheese Bar, Tyler longs “for a nice clean playing field.

London Restaurants Restaurant Charge Pay French Cent Scheme Staff King Customers Cornwall Tyler Vat Camden Carver His Staff Service Charge Our Staff Matthew Carver Selin Kiazim Discretionary Service Oklava Kiazim Paladar  pay  scheme  discretionary  service  cent  customers  scrapping  point  charge  tyler  restaurant  tipping  staff  restaurants

History of this topic

How demands for US-style tipping are on the rise in UK hotels and cafes... but hard-up Brits are NOT giving in
3 months, 3 weeks ago

How demands for US-style tipping are on the rise in UK hotels and cafes... but hard-up Brits are NOT giving in

Daily Mail  

A growing number of British hospitality and service providers are adopting a US-style tipping culture, with gratuities prompts routinely added to card payment machines. A growing number of British hospitality and service providers are adopting a US-style tipping culture, with gratuities prompts routinely added to card payment machines But despite the strong nudge from businesses, the UK public is in …

Is it time for restaurants to ditch optional service charges? Join The Independent Debate
5 months, 2 weeks ago

Is it time for restaurants to ditch optional service charges? Join The Independent Debate

The Independent  

Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more SIGN UP I would like to be emailed about …

The Great Tipping Debate: Has charging for service gone too far in the UK?
5 months, 3 weeks ago

The Great Tipping Debate: Has charging for service gone too far in the UK?

The Independent  

It’s a truth universally acknowledged that the British public are generally polite, often to the point of apologising when someone steps on their foot. What we have now is this awkward, convoluted system where service charges and tipping are tangled together, leaving diners unsure whether they’re paying for good service or simply subsidising a broken pay structure. Maybe one day, …

Expert reveals how much you really need to tip for goods and services - and it's less than you think
5 months, 3 weeks ago

Expert reveals how much you really need to tip for goods and services - and it's less than you think

Daily Mail  

How much to tip - especially when service charge is already included on your bill - is something that's a constant source of bafflement to Brits. Restaurants and cafes: 10 - 15 per cent Many restaurants in the UK, especially in London and other big cities, now include a service charge in the bill - usually of 12.5 per cent. …

OK, But What Are The Service Charges On My Restaurant Bill?
7 months ago

OK, But What Are The Service Charges On My Restaurant Bill?

Huff Post  

igor kisselev, www.close-up.biz via Getty Images One type of extra fee that’s becoming common in the hospitality world is a “service charge.” It seems like the cost of going out to eat at a restaurant is always a hot topic for debate; between rising prices, gratuity requests popping up at counter-service spots and seemingly random surcharges, many diners now find …

Restaurants may be able to keep service fees if menu shows the charges
9 months, 2 weeks ago

Restaurants may be able to keep service fees if menu shows the charges

LA Times  

A new state law to prohibit hidden surcharges and other “junk fees” tacked onto customers’ bills is slated to go into effect July 1, with businesses having to include those charges in the prices they post or advertise. Under the proposal by Sen. Bill Dodd, restaurants could continue to add surcharges, mandatory gratuities or fees to diners’ bills instead of …

To tip or not to tip and the dilemma of a service charge
1 year, 5 months ago

To tip or not to tip and the dilemma of a service charge

Live Mint  

A tip, an age-old appreciation of good service, is no longer a simple matter. It can be a service charge included in some restaurant bills or an online cue to “add a tip" for a food delivery agent or cab driver. In response, the income tax department had clarified that firms are liable to pay income tax on service charge …

This Reddit list is tracking L.A. restaurants charging ‘service fees’
1 year, 7 months ago

This Reddit list is tracking L.A. restaurants charging ‘service fees’

LA Times  

Patrons eat lunch at Jon & Vinny’s restaurant in Brentwood. This is to say nothing of service charges, typically ranging from 3% to 20%, that are tacked onto restaurant customers’ bills with various disclaimers, some more opaque than others, such as “healthcare surcharge,” “competitive industry compensation” and “wellness fee.” A Google spreadsheet circulating in Reddit’s Los Angeles group has gained …

‘Deceiving and disgusting’: Readers react to the rise of restaurant service fees
1 year, 9 months ago

‘Deceiving and disgusting’: Readers react to the rise of restaurant service fees

LA Times  

A class-action lawsuit was filed in Los Angeles Superior Court on June 20 by former servers at Jon & Vinny’s, a hip Italian American restaurant owned by Jon Shook and Vinny Dotolo, with locations in Fairfax, Beverly Hills and View Park-Windsor Hills. So one knows exactly what to expect — and so do the employees.” — Peter M. Graf “Restaurant …

Scuffle over service charge: To pay or to not pay?
1 year, 9 months ago

Scuffle over service charge: To pay or to not pay?

Hindustan Times  

Recently, a scuffle broke out between a group of diners and staff at Float by Duty Free, a restaurant in Noida, over the latter levying a service charge of ₹970 on a bill of ₹11,209. This incident is the latest of many to bring the contentious issue of service charge into the limelight, raising questions about its legality and lack …

Is a dine-in service fee a tip? Former servers allege in suit they are owed gratuities from Jon & Vinny’s
1 year, 9 months ago

Is a dine-in service fee a tip? Former servers allege in suit they are owed gratuities from Jon & Vinny’s

LA Times  

At one point in 2021, Jasmine Sharma was so exasperated with her low tips at the Jon & Vinny’s restaurant in Fairfax that she learned to approach almost every diner with what she dubbed her “monologue.” “Hi, all. In Tuesday’s suit against Jon & Vinny’s, Liss-Riordan’s firm wrote: “When customers have paid these 18 percent service charges on Defendant’s bills, …

Letters to the Editor: ‘I detest American tipping culture’ — the case for just paying workers more
1 year, 10 months ago

Letters to the Editor: ‘I detest American tipping culture’ — the case for just paying workers more

LA Times  

Meeka Smith, visiting from Baltimore, shows her receipt that includes a mandatory 15% service charge and a tip she left at a restaurant in Venice. It’s not right for a business to surprise a customer with a bill showing added charges for “kitchen support” or “health insurance.” That happened to me twice recently, and in both cases I did not …

Should Restaurants Just Include Tips In The Cost Of A Meal?
2 years, 1 month ago

Should Restaurants Just Include Tips In The Cost Of A Meal?

Huff Post  

studiocasper via Getty Images “Rent Is 2 Damn High” has been a unifying rallying call several times already in the past couple of decades. This amount varies by state, but by law, in many states, if you earn at least a paltry $20 a month in tips, you’re working for nothing more than, as Blanche DuBois so eloquently put it, …

HC stays guidelines prohibiting levying of service charge by restaurants
2 years, 8 months ago

HC stays guidelines prohibiting levying of service charge by restaurants

The Hindu  

The Delhi High Court on July 20 stayed the recent guidelines issued by the Central Consumer Protection Authority banning restaurants and hotels across the country from levying service charge by adding it along with the food bill. The high court said that CCPA’s guidelines, which effectively barred restaurants and hotels from adding service charge automatically or by default in the …

Staff will suffer, feels restauranteurs; customers happy
2 years, 8 months ago

Staff will suffer, feels restauranteurs; customers happy

Hindustan Times  

On Monday, the Central Consumer Protection Authority prohibited eateries from automatically or by default levying service charges on food bills. As Central Consumer Protection Authority has prohibited eateries from automatically or by default levying service charges on food bills, restaurateurs feel this isn’t in the welfare of their staff. Umang Tewari, owner, Local, Junkyard and Liv Bar, says, “The service …

Customers happy, restaurateurs upset over removal of service charges
2 years, 8 months ago

Customers happy, restaurateurs upset over removal of service charges

The Hindu  

While the Central Consumer Protection Authority’s recent announcement which tagged service charges “unfair” has sparked joy among bill paying consumers, the same is not the case for those who own and run hotels and restaurants. To protect consumer interest on behalf of our hotel owners, we welcome this decision and also advise all our members to do the needful.” The …

Levied with a service charge at an eatery? Here’s what you can do
2 years, 8 months ago

Levied with a service charge at an eatery? Here’s what you can do

Firstpost  

The government has enabled customers to file complaints in case of violations after they stipulated that the service charge levied by restaurants and eateries was an ‘unfair trade practice’ Eating out in the country just got cheaper — almost by 10 per cent! On 4 July, the Central Consumer Protection Authority barred hotels and restaurants from levying service charge automatically …

Hotels, restaurants cannot force consumers to pay service charge. It's voluntary
2 years, 8 months ago

Hotels, restaurants cannot force consumers to pay service charge. It's voluntary

Hindustan Times  

Hotels and restaurants are now barred from levying service charges automatically or by default on food bills, the Central Consumer Protection Authority said on Monday, adding customers will be allowed to file complaints in case of violation. The service charge can also not be collected by adding it along with the food bill and levying the Goods and Services Tax …

Why there is a debate over service charge in restaurants
2 years, 9 months ago

Why there is a debate over service charge in restaurants

India Today  

Working in the hospitality industry is not easy. That the service charge attracts GST further confirms this,” says Anurag Katriar, trustee at NRAI, and founder and managing director, Indigo Hospitality Pvt Ltd. Katriar finds the argument that menu prices be increased instead of levying service charge separately “misplaced”. From my experience, at our restaurants, only one in ten guests debates …

As Service Charge Is Being Opposed, Will Restaurants Go For Price Hikes?
2 years, 9 months ago

As Service Charge Is Being Opposed, Will Restaurants Go For Price Hikes?

News 18  

As the consumer affairs ministry has already called levying the service charge illegal, restaurants are saying it’s very much legal until the final rules come in. Last week, during a meeting with restaurant and hotel bodies, consumer affairs secretary Rohit Kumar Singh said that even as restaurant associations claim the practice of levying service charge is legal, the consumer affairs …

Service Charge Levied by Restaurants is Legal in India? Here Is What We Know
2 years, 9 months ago

Service Charge Levied by Restaurants is Legal in India? Here Is What We Know

News 18  

A row has recently sparked up regarding the act of restaurants levying service charges on customers with the consumer affairs ministry calling for a robust framework, and the restaurants saying that the same is very much legal in India until further notice. The department of consumers affairs has called levying service charge by restaurants an “unfair trade practice”, but there …

Eateries hint at legal face-off with government over service charge
2 years, 9 months ago

Eateries hint at legal face-off with government over service charge

Hindustan Times  

Restaurants will not be able to force diners to pay a service charge, according to new rules being framed by the ministry of consumer affairs, but eateries aren’t conceding yet. Restaurants and hotels can “raise prices but cannot levy service charges without the customer’s explicit consent”, commerce and consumer affairs minister Piyush Goyal said on Friday. On Thursday, the government …

Eateries, govt lock horns on service charge
2 years, 9 months ago

Eateries, govt lock horns on service charge

Hindustan Times  

New Delhi: Restaurants will not be able to force diners to pay a service charge, according to new rules being framed by the consumer affairs ministry but eateries aren’t conceding yet. Union commerce and consumer affairs minister Piyush Goyal on Friday said restaurants and hotels can “raise prices but cannot levy service charges without the customer’s explicit consent”. On June …

Service charge issue: Restaurants body, owners says govt's move unfortunate
2 years, 9 months ago

Service charge issue: Restaurants body, owners says govt's move unfortunate

Firstpost  

The government’s move will be a ‘loss’ to the ordinary staffers only. It is meant for the staff who render services to guests and divided among all the serving staff at a restaurant, which they receive it over and above their salaries, said NRAI president Kabir Suri New Delhi: A national food industry body and several restaurant owners on Friday …

Restaurants can’t impose ‘service charge’ to food bills: Piyush Goyal
2 years, 9 months ago

Restaurants can’t impose ‘service charge’ to food bills: Piyush Goyal

The Hindu  

Food and Consumer Affairs Minister Piyush Goyal on June 3 asserted that restaurants cannot add ‘service charge’ to the food bills, though customers at their discretion can give “tips” separately. On June 2, the consumer affairs ministry said the government will soon come out with a legal framework to stop restaurants from imposing service charges on customers as the practice …

Explaining service charge by restaurants and the unsavoury row over it
2 years, 9 months ago

Explaining service charge by restaurants and the unsavoury row over it

Firstpost  

The restaurant association in India and the government are at loggerheads over service charge. Terming the service charge illegal at restaurants, the consumer affairs ministry has asked the National Restaurant Association of India to immediately stop the practice. The department, which comes under the Ministry of Consumer Affairs, Food, and Distribution, had chalked the guidelines after noticing that some hotels …

Centre to come up with framework to check service charge levied by restaurants
2 years, 9 months ago

Centre to come up with framework to check service charge levied by restaurants

Firstpost  

Service charge is used by restaurants/hotels to pay the staff and workers and is not charged for the experience or food served to consumer New Delhi: The Department of Consumer Affairs will soon come up with a robust framework to ensure strict compliance by the stakeholders with regard to service charge levied by restaurants and hotels as it adversely affects …

To Pay or Not? News18 Decodes the Service Charge in Restaurant Bills & Why is it 'Illegal'
2 years, 9 months ago

To Pay or Not? News18 Decodes the Service Charge in Restaurant Bills & Why is it 'Illegal'

News 18  

The Department of Consumer Affairs has observed that restaurants levying service charge from customers as the practice is an “unfair trade practice”. However, consumer organisations observed that levying service charge is patently arbitrary and constitutes an unfair as well as restrictive trade practice under the Consumer Protection Act. Further, considering entry of a customer to a restaurant/hotel as an implied …

Centre will bar restaurants from levying service charge
2 years, 9 months ago

Centre will bar restaurants from levying service charge

Hindustan Times  

The government will frame new rules, along with a legal framework, to prevent restaurants from levying service charge on diners, which is an “unfair trade practice”, consumer affairs secretary Rohit Kumar Singh said on Thursday. Consumers often mix up “service charge” imposed by eateries with service tax, which is a statutory levy under the Goods and Services Tax or GST, …

Levying service charge legal, restaurant associations tell Consumer Affairs Department
2 years, 9 months ago

Levying service charge legal, restaurant associations tell Consumer Affairs Department

The Hindu  

In a meeting called by the Department of Consumer Affairs on Thursday to seek clarification on restaurants levying service charge “by default” on consumers, the National Restaurants Association of India and The Federation of Hotel & Restaurant Associations of India clarified that there was no illegality in levying such a charge. The association also said that various judicial orders have …

Centre to formulate legal framework to stop eateries from levying service charge
2 years, 9 months ago

Centre to formulate legal framework to stop eateries from levying service charge

Firstpost  

Consumer organisations observed that levying service charge is patently arbitrary and constitutes an unfair as well as restrictive trade practice under the Consumer Protection Act New Delhi: The government will soon come out with a legal framework to stop restaurants levying service charge from customers as the practice is “unfair”, Consumer Affairs Secretary Rohit Kumar Singh said on Thursday. Consumer …

Service Charge By Restaurants Illegal, Says Govt; Asks NRAI To Immediately Stop It
2 years, 9 months ago

Service Charge By Restaurants Illegal, Says Govt; Asks NRAI To Immediately Stop It

News 18  

The consumer affairs ministry on Thursday called the service charge levied by restaurants illegal and asked the National Restaurant Association of India to immediately stop the practice. In a letter to the NRAI recently, Department of Consumer Affairs Secretary Rohit Kumar Singh pointed out that the restaurants and eateries are collecting the service charge from consumers by default, even though …

Levying service charge not unfair trade practice: NRAI
2 years, 10 months ago

Levying service charge not unfair trade practice: NRAI

Hindustan Times  

The National Restaurant Association of India on Tuesday said that asking for service charge is not an unfair trade practice, and contended that once a customer is aware of such a charge and goes on to place an order anyway, the act of doing so becomes an agreement between the parties. It added that service charge — or fee charged …

Service charge not distributed to workers by restaurants liable to income tax: CBDT
6 years, 4 months ago

Service charge not distributed to workers by restaurants liable to income tax: CBDT

Firstpost  

New Delhi: Service charge collected by hotels and restaurants but not passed on to staff and workers will be liable to income tax in the hands of such entities, the tax department has said. The ministry also said that there is “every likelihood” that the service charge amount collected is not even distributed among staff and workers of the hotels …

Service charge back on Pune menus
6 years, 11 months ago

Service charge back on Pune menus

Hindustan Times  

The beginning of the financial year, April, saw the return of service charge, as restaurants and pubs across the city began charging their customers for services rendered. According to National Restaurant Association of India, service charge is a fee charged by the restaurant over and above the price of food and drink for the additional convenience of service rendered inside …

How much to tip in the US: Service charge means you could pay twice
7 years, 6 months ago

How much to tip in the US: Service charge means you could pay twice

The Independent  

Sign up to Simon Calder’s free travel email for expert advice and money-saving discounts Get Simon Calder’s Travel email Get Simon Calder’s Travel email SIGN UP I would like to be emailed about offers, events and updates from The Independent. I had calculated $5 would represent a tip of about 15 per cent, and placed a five-dollar-bill in the tip …

‘Service Charge’ In Hotel Bills Totally Voluntary: Govt Issues Guidelines
7 years, 11 months ago

‘Service Charge’ In Hotel Bills Totally Voluntary: Govt Issues Guidelines

Live Law  

‘Service charge column of the bill may be left blank for the customer to fill up before making payment’The Food and Consumer Affairs Ministry has made it clear that Service Charge on hotel and restaurant bills is totally voluntary and not mandatory, and Hotels/Restaurants cannot decide how much Service Charge is to be paid by the customer & it should …

‘Service Charge’ In Hotel Bills Totally Voluntary: Govt Issues Guidelines
7 years, 11 months ago

‘Service Charge’ In Hotel Bills Totally Voluntary: Govt Issues Guidelines

Live Law  

‘Service charge column of the bill may be left blank for the customer to fill up before making payment’The Food and Consumer Affairs Ministry has made it clear that Service Charge on hotel and restaurant bills is totally voluntary and not mandatory, and Hotels/Restaurants cannot decide how much Service Charge is to be paid by the customer & it should …

Restaurants cant fleece you any more, govt makes service charge voluntary
7 years, 11 months ago

Restaurants cant fleece you any more, govt makes service charge voluntary

India TV News  

The government has decided to issue an advisory to states asking them to crack down against unfair imposition of service charge on food and drink bills. Food and Consumer Affairs Minister Ram Vilas Paswan today said that no such thing as the service charge exists and that it was being wrongly charged. We cannot understand why we are being singled …

Service charge may soon be a thing of the past, as govt clamps down on 'unfair trade practice'
7 years, 11 months ago

Service charge may soon be a thing of the past, as govt clamps down on 'unfair trade practice'

Firstpost  

The Centre has has asked restaurants to remove service charge voluntary component levied by hotels. While service tax is a mandatory component in the restaurant’s bill, service charge by law has always been a voluntary component. Speaking about this in January, Paswan had said, “Our department’s view is that imposing service charge is an unfair trade practice and consumers need …

Service charge advisory to affect hotel business in AP
8 years, 2 months ago

Service charge advisory to affect hotel business in AP

Deccan Chronicle  

Rajahmundry: As the Centre has issued an advisory recently stating that paying service charge at the hotels and restaurants is discretionary and a majority section of customers is unwilling to pay such charge, the hotels and restaurants will be having their revenue dented in city. Though service charge is being levied ranging from 5 per cent to 20 per cent …

To service' with love, not money
8 years, 2 months ago

To service' with love, not money

Deccan Chronicle  

The worst part of dining out has to be shelling out extra bucks for bad service. Omer Faiyaz, entrepreneur and foodie adds, “Tips given to a waiter is an appreciation towards good service, it encourages them to do better, albeit restaurants shouldn’t really make it compulsory to pay tips aka service charge and neither should they consider tips as an …

How would we take care of staff without service charge: Eatery owners
8 years, 2 months ago

How would we take care of staff without service charge: Eatery owners

Firstpost  

The Department of Consumer Affairs on Monday issued a statement saying that customers dissatisfied with service at any hotel or restaurant can opt for the service charge not being levied as this is optional or discretionary. New Delhi/Mumbai: Though customers now refuse to pay the service charges levied by restaurants, the owners of the eateries have voiced their disappointment over …

Service charge: Why put the consumer in a conflict with eateries?
8 years, 2 months ago

Service charge: Why put the consumer in a conflict with eateries?

Firstpost  

The government puts the onus of deciding whether to pay service charge on the consumer. The government notification puts the onus of deciding whether to pay this ‘service charge’ or not on the consumer. The Ministry of Consumer Affairs, Food and Public Distribution hasn’t issued any prohibitory order to stop hotels and restaurants from levying service charge on bills. The …

Service charge: Bureaucratic govt's half-steps have made a royal mess of a sticky issue
8 years, 2 months ago

Service charge: Bureaucratic govt's half-steps have made a royal mess of a sticky issue

Firstpost  

If the eatery owners and associations lack a fair wage policy for their employees, they have no right to pass the burden on to their customers. Dissatisfied with the experience, you choose to not pay the 20 percent service charge and end up colliding with the hotel management over the issue, resulting in complete ruination of your memorable day. And …

Govt directive on service charge will lead to confusion, says industry body
8 years, 2 months ago

Govt directive on service charge will lead to confusion, says industry body

Firstpost  

Service charge is an above board practice and there are even judicial pronouncements to support that ‘service charge’ can be charged by hotels and restaurants. New Delhi: The government’s clarification that service charge on food bill is not compulsory and a dissatisfied customer can choose to have it waived will “lead to confusion and quarrels”, hotels and restaurant owners said …

Service charge at hotels: Don’t be fooled by govt notification, it has just passed the buck
8 years, 2 months ago

Service charge at hotels: Don’t be fooled by govt notification, it has just passed the buck

Firstpost  

Prime Minister Modi who has been spearheading the digital payment campaign perhaps would not mind a limited deviation in favor of tips to the waiters being paid in cash because only that ensures that tipping remains voluntary in letter and spirit and reaches the intended beneficiary—the one who has attended on you. The Department of Consumer Affairs has clarified that …

Paying Service Charge ‘Discretion Of Customer’, Can Deny If Unhappy: Govt.
8 years, 2 months ago

Paying Service Charge ‘Discretion Of Customer’, Can Deny If Unhappy: Govt.

Live Law  

Those disappointed with sloppy service at restaurants need not shell out those extra few notes for ‘service charge’.The Department of Consumer Affairs said the ‘service charge’ billed in the total amount along with the taxes is only ‘optional’ and the customer has the discretion to not pay it.The department has asked the state governments to sensitise the companies, hotels. The …

Govt says service charges at restaurants optional, Twitter reacts
8 years, 2 months ago

Govt says service charges at restaurants optional, Twitter reacts

Hindustan Times  

Ever grumbled about paying service charges on your restaurant bill despite getting lousy service or a bad dining experience? The Department of Consumer Affairs has announced that the ‘service charges’, which restaurants include in addition to taxes, are actually optional --- and not mandatory. Following complaints from consumers, the Department of Consumer Affairs has declared that making service charge compulsory …

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