oppn parties Why Service Charge for Bad Service?

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  • Amit Shah says the government will identify and deport illegal immigrants from all parts of the country
  • Reports from Pakistan confirm that Hafiz Saeed has been arrested and sent to jail
  • After the SC order, Karnataka Speaker says he will go by the Constitution in deciding on the resignations of the 16 MLAs
  • Rebel MLAs say they will not attend the trust vote on Thursday
  • Supreme Court rules that rebel MLAs cannot be forced to attend the assembly and vote in the floor test
  • Both the Centre and the Assam government have sought re-verification of up to 20% of draft NRC data
  • Pakistan opens its airspace for Indian planes
  • Dilapidated building collapses in Mumbai, killing more than 10 people while many were still trapped
  • Kulbhushan Jadhav case verdict to be delivered today by the ICJ
  • A Vistara flight landed in Lucknow with just 5 to 10 minutes of fuel left in the tank
  • Supreme Court to decide on Karnataka MLAs plea today
  • Karnataka alliance to face floor test on Thursday
  • China says that the next Dalai Lama will be appointed by it
  • Pakistan assures India that no anti-India activity would be allowed in the Kartarpur corridor
  • Pakistan to allow visa-free access to 5000 pilgrims every day to undertake pilgrimage using the Kartarpur corridor
ISRO calls-off Chandrayaan-2 mission launch at last moment due to technical snags. revised date will be announced later
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Why Service Charge for Bad Service?

By admin

About the Author

Sunil Garodia By our team of in-house writers.
People are talking about restaurant bills now. With the government saying that the service charge (as distinct from service tax, which has to be paid mandatorily) component should be optional – that a customer should pay only if he or she gets service of an expected quality, otherwise they can ask the eatery to revise the bill, the people have started talking about their horrible experiences in renowned restaurants where they were forced to pay 20% service charge on food bills despite getting atrocious service. Trade bodies of restaurants have retorted by saying that they will continue with the service charge and have haughtily added that patrons are welcome not to visit if they do not wish to pay the same.

Restaurants add various charges on their bills. One such is establishment charges. Taking the plea that they are providing diners with plush seating, lavish décor and air-conditioning, eateries charge a premium of anywhere between 200 to 500 percent on bottled water and branded soft drinks on the maximum retail price. If one carries one’s own drinking water, many times eateries do not provide empty glasses for the same. People have long resented this.

Logic provides that if a business is being run as a sit-down fine dining place, the price of food must cover all overheads the entrepreneur incurs. If dishes are priced upwards of Rs 350 for a portion, the waiter who serves the dishes must get his salary from that. Levying additional charges is abominable. Restaurants are already talking about how prices will be upwardly revised if they are not allowed to charge for service.

But keeping the service charge component optional is sure to start many ugly fights in restaurants. The best way would be for eateries to prominently display a board saying “this restaurant levies XX% service charge on its bill” and leave it to the diner whether he wishes to eat there or not. The same message should be prominently printed on all pages of the menu instead of being relegated to a small, 7 point line at the bottom. Many patrons end up leaving tips even after paying service charge in the bill as they do not know they have been charged separately for the service.