Legality of Service Charge (mandatory tips) in India
- Thread starter Sushubh
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an official guideline is still welcome. increased rates on the menu is better because you get closer to the final price. service charge at 10% in addition to regular taxes levied by government(s) pretty much makes the pricing in menu a joke. i wish they would just establish a ruling requiring all restaurants to show all-inclusive pricing on their menus. freshmenu and yumist are doing it already. a few local joints also do it (i have no idea if they are just not paying taxes or have included them in the prices on the menu). this should be the standard. like mrp on products.
The problem is some restuarants are going out of control. In 2013, I remember seeing a bill (paid by someone else) of Rs.2500 had an additional Rs.500 as service charge - and this was no fancy restaurant, a typical 500-600 for 2 kind of restaurant. We decided never to go to that place again. As its exorbitant.
lol. i do not think i have seen it higher than 10%. 20% seems extremely high 
the other thing government should have done was to set guidelines that this charge WOULD go to the staff. most restaurants do not pass on the entire benefit. even the big ones.
the other thing government should have done was to set guidelines that this charge WOULD go to the staff. most restaurants do not pass on the entire benefit. even the big ones.
We literally had a verbal fight - I was more on the back of the actual two guys from our side arguing - who were saying that they should inform atleast on menu of this service charge - hotel had some story of it being Rs.500 when crowd is like 5 or more or something.
We were even asking what if we had ordered just a couple of things totalling under Rs.1000 will you still charge Rs.500 for that.
Clearly, they wanted to have more service charge when a huge crowd ends up paying no tip or whatever. But in our case (it was 5 or 6 people I think), it felt too much - more so as a couple of them were very poor eaters.. The food was ok-ish, service, well - I dont think they even served to the plates - just kept it on the table - so not sure what their excuse was for such a high charge
We were even asking what if we had ordered just a couple of things totalling under Rs.1000 will you still charge Rs.500 for that.
Clearly, they wanted to have more service charge when a huge crowd ends up paying no tip or whatever. But in our case (it was 5 or 6 people I think), it felt too much - more so as a couple of them were very poor eaters.. The food was ok-ish, service, well - I dont think they even served to the plates - just kept it on the table - so not sure what their excuse was for such a high charge
powerwatts
Regular
No space science this but the work around I (and friends of mine) do is to go a restaurant which is worth the buck paid for and avoid the restaurants with exorbitant pricing. Basically choosing ones which are value for money.
