Legality of Service Charge (mandatory tips) in India

[Aakash Malhotra]

It is newly opened outlet. Forgot its name.

 

[Jonas]

Many outlets have opened in DLF Avenue, not sure about Select City. Might have missed it.

 

[Sushubh]

Source

 

[manu1991]

I still don't understand why restaurants have a problem with this. Can't they just increase the price of everything by 12.5% and charge the same as what they were doing by adding the service charge? What's stopping them from doing it

 

[pujaari]

So their theory is that if they increase the menu prices, it'll go to landlords and food aggregators pocket who have a revenue sharing and commision on volume basis agreements

 

[mikrotik]

Then why do they inflate their menu on aggregators?

 

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[Jonas]

Government is just working on a new way to raise revenue. In India, before the silence comes a storm.

 

[Notorious]

Customers will be paying more now. People celebrating on whatsapp'verse are in for a rude shock.

 

[Sushubh]

They are already paying a lot. You see the price in menu. If you get poor service and are charged 10% for it, that's the problem part. No one expects restaurants to absorb the cost. They want food to cost what it appears in the menu for.

 

[Notorious]

Restaurants will increase food prices and then customers will have to pay taxes on hidden 'service charge"