[ValarMorghulis]

We often visit The Pet People Cafe in HSR Bangalore, to get our cocker spaniel groomed.
The restaurant in the cafe automatically adds a service charge to your food/ coffee bill which I'm perfectly happy to pay since 1. They clean the place/ sofas for fur etc. after each visit. 2. They also provide the pets with water and are really nice to them. So this place deserves a service charge.

For all other places, I want the service charge to be my choice and not automatically added to the bill.

Let restaurants also pay tax and if they want to raise the prices further, so be it. Free market.

[Raghu M]

Originally Posted by superbad

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.

Most of the people that restaurants employ are part timers. I don't think the labor laws apply to contractors. It's mostly on an hourly basis but I was told by a waiter himself about this. I was shocked but looks like that is the norm across restaurants in Manhattan.

[AZT]

Originally Posted by akhil_007

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?

The new rule forbids them from adding a mandatory service charge even if above is mentioned. Any restaurant not complying will just get a complaint from any of their patrons to whatever regulatory body this comes under.

Haven't visited a restaurant since this rule passed but I'm curious to see if everyone is following this.

[siddd]

Originally Posted by kushagra452

I have been to restaurants in Delhi NCR wherein I politely requested for the removal of service charge. The Manager walked over and asked me to share my mobile number. When I refused, he said the service charge will only be removed after I share my mobile number. I wonder whether anyone has faced such a scenario in Delhi NCR or elsewhere.

I have faced the same problem at a restaurant in Kolkata. However, after a little firm talk, the manger agreed to remove the service charge without me giving him my mobile number. Probably, they were also not wanting to antagonize me further as they had already got a piece of my mind earlier because of their atrocious service.

[dragonfire]

Governments should stop meddling in the affairs of private businesses. If any business is charging an "unfair" charge, customers would vote with their feet/wallet.

Now, if govt prohibits restaurants from charging a service fee, they would happily add them to the food prices. They have already beat the MRP rule for bottled water/drinks by selling "specially packaged" drinking water at a higher MRP. Bottled water manufacturers are only happy to play along.

So moral is, market will eventually find a way around all these unfair govt regulations.

[abhijith]

This is funny when I remembered that I had seen a post on Twitter about IRCTC(100% owned by GoI) charging a Rs 50 Service Charge on a Rs 20 morning tea on Bhopal Shatabdi.

[Sidban85]

Originally Posted by ValarMorghulis

We often visit The Pet People Cafe in HSR Bangalore, to get our cocker spaniel groomed.
The restaurant in the cafe automatically adds a service charge to your food/ coffee bill which I'm perfectly happy to pay since 1. They clean the place/ sofas for fur etc. after each visit. 2. They also provide the pets with water and are really nice to them. So this place deserves a service charge.

For all other places, I want the service charge to be my choice and not automatically added to the bill.

Let restaurants also pay tax and if they want to raise the prices further, so be it. Free market.

It is already overpriced for food and grooming service. So, I stopped going there once HUFT opened next door.
Also, people there were pushy selling stuff. So that makes it irritating.
You can say that prices are high because they have to clean the place, but then why the service charge on top?

[chef-de-jeep]

Well, I run a restaurant and I have never explored levying a service charge. A year ago as I was speaking to one of my subordinates who is employed with a very reputed restaurant chain(we were both employees of a reputed 5 star chain) it was a big blow to a guy who makes 15-20k a month after being in front of a tandoor for 12 odd hours a day. This apart from all the other prep time needed.

The working condition is indeed not very hospitable at any good hotel/restaurant and badly behaved guests who always seem to know more about the food or complain at whim. For all the extended hours or partying that goes on till the wee hours of banquet halls in five stars and snacks served much beyond the permitted hours. The guy was taking home a princely 2.5-3 k which was a big difference to him in his life. Of course I detest the ridiculous 4k service charge that some one mentioned above.

[Malyaj]

Originally Posted by chef-de-jeep

The working condition is indeed not very hospitable at any good hotel/restaurant and badly behaved guests who always seem to know more about the food or complain at whim. For all the extended hours or partying that goes on till the wee hours of banquet halls in five stars and snacks served much beyond the permitted hours. The guy was taking home a princely 2.5-3 k which was a big difference to him in his life. Of course I detest the ridiculous 4k service charge that some one mentioned above.

Hi chef-de-jeep,

Fellow (ex) restaurant owner here. I agree that the salaries in the industry are very low and working hours quite long. However you will notice that service charge is almost always levied by big and expensive establishments, rarely by the mid and budget range ones. I find it a bit unfair that entrepreneurs who could afford to spend crores on interiors, liquor license and monthly lakhs of rupees on marketing do not think it appropriate to pay their staff a fair fixed wage, and instead want to make it contingent on the earnings for the day. They are transferring the risk to the weakest, instead of the strongest, i.e. themselves.

Another point which many restaurant owners are missing is that people are not complaining so much about the 'hidden' charge, but the fact that it feels forced. By positioning it as a tip, restaurant owners themselves have made it problematic, because customers who find the service poor loathe being asked to pay a forced tip. And let's face it, service can get bad at places. I too have given some bad experiences to my customers.

If they can agree that it is not a tip, but a way of funding their staff salaries, then it has to be accounted as revenue and they should pay tax on it like any other service provider. The neighbourhood barber, auto mechanic, taxi driver, electrician all are service providers and work in difficult conditions, long hours. They are not levying service charge separately or expecting a tip.

Finally, to those who are saying that this is interference in business practices, it isn't. Splitting revenue at your whims and fancies to dodge taxation isn't right and will face interference from government. It happens in all industries. Ask CEOs and MDs what kind of questions they have to face from the taxman. Restaurant industry on the whole is over regulated by local governments and municipal bodies, but tax dodging is a legitimate concern. Owners should instead lobby to reduce regulation. During my time as a restaurant owner, I never found the NRAI doing anything worthwhile on this front.

[am1m]

Originally Posted by chef-de-jeep

Well, I run a restaurant and I have never explored levying a service charge.

Originally Posted by Malyaj

Fellow (ex) restaurant owner here.

Thank you both for posting, always more useful to hear from people actually involved in the business. Would be great to hear from someone working as staff as well, but given the very narrow range of Tbhp's demographic, doubt that will happen. But your posts are certainly very instructive.

Originally Posted by Malyaj

However you will notice that service charge is almost always levied by big and expensive establishments, rarely by the mid and budget range ones.

Exactly, such a pertinent point. From the customer side as well, I've noticed that we rarely complain when it comes to a fancier establishment, where often we're just getting ripped off and the service sometimes borders on snobbish. Those places we pay and tip uncomplainingly. Whereas we tend to act bossy and like cheapskates and quibble over the tip at smaller establishments, where I've often received much better service.

[m8002?]

While I am all for minimum government interference in business, this is a welcome move. When a customer sees the price for a service/product, it should be the all inclusive price. If they have good chefs and waiters, then pay them more and charge accordingly for food and service.

The aviation industry was notorious for showing fares as Rs.1/10/100 and then adding a bunch of charges on top and that was corrected. It is the same here as well.

[Superleggera]

Walked into one of the breweries yesterday (LaCasa, Kasavanahalli, Hosa Road,Bangalore) and they had a big board right next to the entrance saying 'We will be charging 10% service Charge on your Bill". Don't think this will be changed anytime soon unless all the customers react against it.

[kushagra452]

Originally Posted by Superleggera

Walked into one of the breweries yesterday (LaCasa, Kasavanahalli, Hosa Road,Bangalore) and they had a big board right next to the entrance saying 'We will be charging 10% service Charge on your Bill". Don't think this will be changed anytime soon unless all the customers react against it.

I am surprised that customers are willing to get arm twisted by such eateries/breweries. Can't someone simply take a snap of this board and log an online complaint. What happens when after a meal a customer refuses to pay the service charge?

[ValarMorghulis]

Originally Posted by Sidban85

It is already overpriced for food and grooming service. So, I stopped going there once HUFT opened next door.
Also, people there were pushy selling stuff. So that makes it irritating.
You can say that prices are high because they have to clean the place, but then why the service charge on top?

Well not exactly. It sells a regular cappuccino for around Rs.220 which is at par with Blue Tokai or Third Wave.
Though I agree with respect to their dog grooming services. I also prefer HUFT next door. That said, I understand their service charge.

Originally Posted by Superleggera

Walked into one of the breweries yesterday (LaCasa, Kasavanahalli, Hosa Road,Bangalore) and they had a big board right next to the entrance saying 'We will be charging 10% service Charge on your Bill". Don't think this will be changed anytime soon unless all the customers react against it.

LaCasa is highly overrated with very average stuff. The only reason to visit this place is proximity to it. Else, totally avoid.

[kushagra452]

Originally Posted by ValarMorghulis

Well not exactly. It sells a regular cappuccino for around Rs.220 which is at par with Blue Tokai or Third Wave.

IMO a regular cappuccino for Rs.220 is damn expensive. I am surprised to see these coffee chains charging the customers in India almost the same price that it costs in London, UK (IIRC a regular cappuccino was GBP 2.50). I find the Chaayos menu to be overpriced as well. Gulping down Rs.60 cup of tea is certainly not my thing.