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Old 6th July 2022, 17:43   #31
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

OT but on the topic of tipping, how do you folks tip in the digital age?

I always tip valets, car washers, waiters, etc. But now every business (at least in Bangalore) accepts digital payment, and I hardly use cash. So, often find myself without small change when there is a need to tip.
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Old 6th July 2022, 19:26   #32
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

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Originally Posted by Jaguar View Post
OT but on the topic of tipping, how do you folks tip in the digital age?

I always tip valets, car washers, waiters, etc. But now every business (at least in Bangalore) accepts digital payment, and I hardly use cash. So, often find myself without small change when there is a need to tip.
I face this problem for temple hundials also . One solution is to get a friendly senior citizen who visits banks frequently to withdraw 10/20 rupee bundles from the teller
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Old 6th July 2022, 20:49   #33
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

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Originally Posted by Doonite View Post
There's another problem that needs adressing.

Since when is tipping an obligation and not a choice?
It should be up to the customer/service user to decide and not a mandatory add-on.
I think this is absolutely spot on! While service charge is like a forced Tip and there is absolutely no way to know if the service charge ends in the right hands, I feel tipping itself should be purely based on merit. Suppose I order 2 dishes, and the waiter just comes and places it on my table, why would I need to tip? He has just placed the food on the table. I’m not saying the food needs to be served, but it really depends on the courtesy exhibited, maybe even the way someone suggests the right food, informing customers if they are for example ordering way too much food or anything like that. I do tip at restaurants and also the security guards at restaurants etc, but I usually do it based on the demeanour of the person. If the person is courteous and even offers a glimpse of being helpful then surely I try and tip. But if the person acts like he doesn’t care then I usually don’t.
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Old 6th July 2022, 21:31   #34
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

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Originally Posted by Jaguar View Post
OT but on the topic of tipping, how do you folks tip in the digital age?
Cash is always king! I doubt even today we are going out without a currency note in wallet. More often than not, we don't have lower denomination currency.

I have 2 anecdotes to share:

One gentleman cleaned my car windshield at an Indianoil petrol bunk 2 days back on my confirmation. The minimum denomination I had was 200. I told him I don't have change, he said he'll get it and indeed did. I gave him from the change he brought me, and moved on. Have done this in a restaurant as well.

Another instance, I added the tip on the card swipe. And the tip was given to the person who serviced me. This was one off occurrence though.
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Old 6th July 2022, 21:48   #35
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

This service charge is akin to the 'handling' charges in the car purchase that is being forced down to the customer. We all know where that money ends up.

I have seen strong disapproval for that practice here but surprised to see people support this mandatory service charge concept. US is a bad example to emulate as the food business interests kept the minimum wage floor low by telling it is in the customer interest (low food prices) but was cleverly subsidized by the tip culture from the same customers showing it as 'American' way of life.

I have encountered service charge only once in UK. In a Thai restaurant, they politely asked whether they can add a service charge that will help them before billing and I was okay with that. If you don't agree, they won't add it to the bill.
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Old 7th July 2022, 10:44   #36
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

There are both pros and cons because of this rule.

Pros -
1.Customers are not forced to pay the service tax/tips
2.Restaurants won't get tax free money.

Cons -
1.Restaurants are simply gonna raise the cost of the food items.
2.Customers are gonna pay the additional GST for the increased cost of the items.

Overall, not much impact to the restaurants but customers will be paying additional GST(10%?) for what used to be the service tax amount + optional tips based on personal choice. In the end, more tax money for the government, more tax for the people and restaurants unaffected.
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Old 7th July 2022, 10:53   #37
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

It needs to be seen how soon restaurants start enforcing it. Or do they end up challenging this in court?

Even if they keep it on bill, I wonder how many will end up starting an awkward conversation of removing it? Especially in upmarket places, most will avoid conflict and so, restaurants will continue to charge.

Other option is to not raise it there, but complain online later.
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Old 7th July 2022, 11:03   #38
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

How do we handle the scenario where restaurant puts up a note saying - " If you decide you be our patron and order food, you're agreeing to the service charge that we levy". Sounds like they don't welcome you if you're not ok pay service charge. Can they deny us "privelege" of eating at their restaurant?
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Old 7th July 2022, 11:22   #39
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

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Originally Posted by Raghu M View Post
In Japan it may be considered rude to tip but in NY (most of US), waiters are generally not paid a salary. They live on tips.
Impossible, it would violate their labour laws which stipulate a minimum wage to all employees. But I agree, getting tips is almost considered a right there.
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Old 7th July 2022, 11:35   #40
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

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Impossible, it would violate their labour laws which stipulate a minimum wage to all employees. But I agree, getting tips is almost considered a right there.
Not impossible, the minimum wage for tipped workers is lot lower.

https://www.dol.gov/agencies/whd/sta...um-wage/tipped

This is why it is considered rude not to tip. It is part of their income.
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Old 7th July 2022, 11:42   #41
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

If I’ve received good service I’m totally fine with the service charge, in fact unless I’ve received terrible service I don’t fuss about the 10%.

That’s because it removes the hassle of tipping entirely, i anyway rarely carry cash now days, so it makes the process more seamless.

But yes I’ve started noticing this weird trend at some pretty high end places wherein when you swipe your card at the time of billing, they physically ask you if you want to add a tip straight into the machine, that’s so embarrassing especially if the service has been good and if you’re there with people. I just point to the bill and say that’s what the service charge is for, and they say that the service charge goes into a pool which is divided amongst all the staff at the end of the month and even the management keeps a cut. So if I’d like to make an extra contribution I can add a tip in the card machine. That it isn’t fair on any level - because when you say no, you come out looking like a looser despite paying a fat bill along with service charge etc.

Last edited by armaan_singh : 7th July 2022 at 11:43.
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Old 7th July 2022, 12:00   #42
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

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Originally Posted by armaan_singh View Post
So if I’d like to make an extra contribution I can add a tip in the card machine. That it isn’t fair on any level - because when you say no, you come out looking like a looser despite paying a fat bill along with service charge etc.
It is absolutely fine to say NO. What others think of you when you say NO, is their problem. Not yours. You cannot control their emotions. Besides, I feel it is downright cheap to ask for a charge on top of existing service charge.
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Old 7th July 2022, 12:09   #43
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

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Originally Posted by armaan_singh View Post
But yes I’ve started noticing this weird trend at some pretty high end places wherein when you swipe your card at the time of billing, they physically ask you if you want to add a tip straight into the machine, that’s so embarrassing especially if the service has been good and if you’re there with people. I just point to the bill and say that’s what the service charge is for, and they say that the service charge goes into a pool which is divided amongst all the staff at the end of the month and even the management keeps a cut. So if I’d like to make an extra contribution I can add a tip in the card machine. That it isn’t fair on any level - because when you say no, you come out looking like a looser despite paying a fat bill along with service charge etc.
This is something that's being copied from the West (US especially) where the waiters are encouraged to get more tips out of the customer (plus their hourly pay rate is lesser if it's a tip-enabled environment). I also remember some restaurants putting a note saying feel free to tip if you had great service; this in spite of charging 10% as part of the bill.

You did the right thing. No shame in saying no when there's a service charge. Every individual around you knows that and will probably do the same (unless they miss out the service charge reflected).
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Old 7th July 2022, 12:41   #44
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

Generally, the sum of the service charge collected from patrons all during the month is split amongst all the employees as an added bonus to their income.

I generally have been upfront with my waiter, informing them that I'd rather pay you directly than others who have not interacted with me at all. This generally leads to me getting the service charge waived off immediately.

In some cases, the waiter says that he can not waive the charges. Instead of then creating a fuss over there, I kindly refuse to pay a tip.
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Old 7th July 2022, 12:47   #45
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Re: Service charge in restaurants abolished; Fresh guidelines issued against unfair practice

Utterly OT:

I have seen this phenomenon in these large stores in malls as well. At the time of swiping, they ask if I can donate Rs.2 or Rs.5 to some children's welfare fund. I always say no and some of the stares I get are with the mind voice "You buy clothes for 4000 but can't spare 5 Rs". I simply say no, but this guilt tripping is seeing an increasing trend nowadays.
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