Unhappy with restaurant’s service? Simply don’t pay!

Have you ever grumbled to anyone willing to listen, about paying the service charges on your restaurant bill, despite getting lousy service or a bad restaurant experience? Well, if you have, there is good news for you. On January 2, The Department of Consumer Affairs has announced that the ‘service charges’, which

restaurants

include in addition to taxes, are optional and not mandatory. A press release detailed that the

service charge

is payable only on a consumer’s discretion and can be waived off if the consumer is not happy with the service. Are restaurant owners welcoming the move? Is the customer feeling empowered? We speak to some prominent restaurateurs in town as well as a few

diners

, about this move…
IT’S LIKE SHOWING ONE’S GRATITUDE FOR SERVICE TAKEN
I don’t think the move would affect our business as the service charge at our restaurants is quite nominal (3%). As long as the restaurants do not charge abnormally high service charges (15- 20 %), I don’t find any fault in charging the customers. Service charge is like showing one’s gratitude for the service taken from a restaurant and its staff. Now, it’s the customer’s discretion to pay it or not. The service charge can be waived off if the customer doesn’t want to pay
- Ramachandran P, general manager, Le Meridien

IF SOME CUSTOMERS CHOOSE NOT TO PAY SERVICE CHARGE, IT MIGHT AFFECT THE PERKS OF STAFF
The move is positive, but has its own complications. Earlier, it was mandatory for customers to pay the service charge, but now they can choose to, depending on the service they have been provided. The drawback in the move is that it doesn’t give a clear picture between a casual dining and fine dining restaurant. The service charge is used to pay our staff, in addition to what we pay as their salary. If some customers choose not to pay the service charges, it might directly affect the small perks of the staff. There is also a risk of some customers deliberately not paying up, despite a good service. We will have to wait and watch
- Vijayakumar Mohan, COO, Bombay Brasserie
HAVE TO COMPENSATE THESE CHARGE THROUGH OTHER MEANS
Service charge is usually charged for all the additional facilities that are provided at a restaurant. The charge also covers the additional breakages and tiny embellishments at a fine dining restaurant; and the perks to the staff. After all, a fine dining restaurant has to maintain its standard to appeal to its customers. But, now with the new move, it looks like we will have to compensate these charges through other means
- Lakshminarayanan Vijay, managing partner, Bird on Tree

THIS MOVE MIGHT AFFECT MY PERKS AND BONUS
The move doesn’t affect me in a big way as the service charge eventually goes to the restaurant. But, I am worried that I will have to face unnecessary questions from my owner if my customer refuses to pay up. It might even affect my perks and bonus, thus putting my work under the scanner
-Raj Kanna,

service staff

IT DOESN’T MAKE A DIFFERENCE TO ME AS I ALWAYS PAY A LITTLE MORE THAN THE BILL AMOUNT
I think it’s in our blood to shell out a tad more while eating at a chat stall, bakery or a restaurant. Earlier, it was mandatory to pay service charge; but now, it’s our choice to pay or not. It doesn’t really make a huge difference as I always pay a little more than. As a customer, I don’t think it would make a huge difference to me
- Lalitha Gautam,founder, Kovai Foodies

A move like this would help restaurants up their ante. If we decide to not pay the service charge, they can introspect and improve
- Venkatesh CS, diner

I WOULD RATHER TIP A BEARER DIRECTLY FOR HIS SERVICE, RATHER THAN PAY THE SERVICE CHARGE
I have never tipped the bearers, when I have been charged for their service. But, at the same time, I have always been sceptical about how the service charge amount has been distributed among the employees – the share and if they have indeed been distributed among them. I would rather tip a bearer directly based on his service than paying the service charge. This way, I know that the money is indeed going to his pocket. I welcome the move whole-heartedly
- Vinod Pillai, senior manager-sales

Service tax

versus Service charge

Service charge:

*Is not levied by the government

*Restaurants are free to charge any amount, as there are no set guidelines yet. Usually varies from 5% to 20%

*Post the announcement by the Department of Consumer Affairs, paying service charge is entirely optional, and falls under the consumer’s discretion.

Service tax:

*Tax levied by the government on the services rendered by restaurants

*It amounts to about 14% and is payable on 40% of the total bill amount (which includes food, drinks and service charge)