Restaurant service – Goniyon http://goniyon.net/ Wed, 27 Jul 2022 05:53:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://goniyon.net/wp-content/uploads/2021/09/icon-3-150x150.png Restaurant service – Goniyon http://goniyon.net/ 32 32 7 in 10 consumers unhappy with staying on CCPA restaurant service fee standards, complaints report https://goniyon.net/7-in-10-consumers-unhappy-with-staying-on-ccpa-restaurant-service-fee-standards-complaints-report/ Wed, 27 Jul 2022 05:53:00 +0000 https://goniyon.net/7-in-10-consumers-unhappy-with-staying-on-ccpa-restaurant-service-fee-standards-complaints-report/ Nearly seven in 10 consumers are unhappy with the Delhi High Court’s decision to suspend recent government guidelines banning restaurants from automatically levying service charges on food bills, a new report recently showed. Last week, Delhi HC suspended new guidelines from the Central Consumer Protection Authority (CCPA) preventing restaurants from adding default service charges to […]]]>

Nearly seven in 10 consumers are unhappy with the Delhi High Court’s decision to suspend recent government guidelines banning restaurants from automatically levying service charges on food bills, a new report recently showed.

Last week, Delhi HC suspended new guidelines from the Central Consumer Protection Authority (CCPA) preventing restaurants from adding default service charges to food bills.

A new Local circles A survey found that 70% of respondents plan to either refuse to pay service tax or avoid restaurants that charge it.

“Consumer contention is that most customers in air-conditioned restaurants tend to tip staff in the normal course based on the quality of service,” the results showed.

A breakdown of those opposed to service charges shows that 20% plan to fight and not pay the additional charge, 37% of respondents plan to avoid restaurants that charge service charges, while 13% plan to avoid eating in restaurants.

In other cases, 28% expressed a willingness to pay a service fee if it was part of the bill, while 2% of respondents were undecided about their course of action. LocalCircles conducted a nationwide survey that received over 21,000 responses from consumers located in 291 districts.

Asked about their experiences, of those with poor or poor service experiences, 23% said it had happened once or twice, 18% said it had happened three to five times, and even worse, 24 % of respondents said this happened up to 6-10 times while 6% were among those who had a bad service experience despite having service charges taken from the bill, more than 10 times.

LocalCircles said it would share the findings of this report with the CCPA and the consumer department so that they move to defend the rights of consumers.

In his response to the verdict, the National Restaurant Association of India (Nrai) said he had always been adamant that there was nothing illegal about charging service fees and that it was a very transparent system.

The CCPA said the consumer can ask the hotel or restaurant concerned to remove the service charge from the amount of the bill. The consumer may also lodge a complaint against unfair commercial practices with the Consumer Commission.

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Restoration service provider 86 Repairs raises $15.2 million in latest funding round https://goniyon.net/restoration-service-provider-86-repairs-raises-15-2-million-in-latest-funding-round/ Tue, 26 Jul 2022 20:49:39 +0000 https://goniyon.net/restoration-service-provider-86-repairs-raises-15-2-million-in-latest-funding-round/ 86 Repairs Inc.a restaurant equipment repair and maintenance company founded in Grand Rapids, raised $15.2 million from investors to support the company’s continued growth. The $15.2 million Series A funding was led by Silicon Valley-based Storm Ventures and included participation from the Wyoming-based company. Gordon Food Service Inc. and Chicago-based Cleveland Avenue. The increase, which […]]]>

86 Repairs Inc.a restaurant equipment repair and maintenance company founded in Grand Rapids, raised $15.2 million from investors to support the company’s continued growth.

The $15.2 million Series A funding was led by Silicon Valley-based Storm Ventures and included participation from the Wyoming-based company. Gordon Food Service Inc. and Chicago-based Cleveland Avenue. The increase, which will support product innovation and nearly three times year-over-year revenue growth, comes after the company landed $7.3 million in seed funding in 2021.

86 Repairs, which also has operations in Chicago, partners with restaurants to provide end-to-end repair and maintenance of kitchen equipment. It also publishes an annual “State of Repairs” report on industry trends as restaurants face rising equipment repair costs and ongoing labor shortages.

“These are the most difficult times in the history of the restaurant industry, and our customers constantly inspire me with their creativity and courage as they navigate this new reality,” said the co-founder. of 86 Repairs, Daniel Estrada, in an announcement about the new funding round. “I’m proud of the value we deliver through the 86 Repairs platform, and I’m excited to continue to expand our reach with the support of our investors and our world-renowned team.”

In addition to labor issues, the average cost to repair kitchen equipment rose 38% in 2021, according to the latest report from 86 Repairs. For example, an average service visit to repair a fryer costs operators $735 and $1,000 for a cold room.

Longer lead times also plague restaurateurs with more downtime, limiting a restaurant’s ability to produce menu items. According to 86 Repairs, restaurants nationwide spend $28 billion annually on equipment repairs and maintenance and $35 billion on new equipment.

The company has now raised a total of $24 million in investments since its founding. It manages repairs and maintenance for more than 2,000 restaurant operators in the United States and Canada, ranging from high-end full-service restaurants to fast-food franchises.


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7 in 10 consumers are not satisfied with meeting CCPA restaurant service fee standards https://goniyon.net/7-in-10-consumers-are-not-satisfied-with-meeting-ccpa-restaurant-service-fee-standards/ Tue, 26 Jul 2022 11:39:47 +0000 https://goniyon.net/7-in-10-consumers-are-not-satisfied-with-meeting-ccpa-restaurant-service-fee-standards/ House ” General ” Company ” 7 in 10 consumers are not satisfied with meeting CCPA restaurant service fee standards Posted By: Gopi July 26, 2022 New Delhi, July 26 (SocialNews.XYZ) Nearly seven in 10 consumers are unhappy with the Delhi High Court’s decision to suspend recent government guidelines banning restaurants from automatically levying service […]]]>

New Delhi, July 26 (SocialNews.XYZ) Nearly seven in 10 consumers are unhappy with the Delhi High Court’s decision to suspend recent government guidelines banning restaurants from automatically levying service charges on food bills, according to a new report released on Tuesday.

Delhi’s HC last week suspended new guidelines from the Central Consumer Protection Authority (CCPA) prohibiting restaurants from adding default service charges to food bills.


A new survey by LocalCircles found that 70% of respondents plan to either refuse to pay service tax or avoid restaurants that charge it.

“Consumer contention is that most customers in air-conditioned restaurants tend to tip staff in the normal course based on the quality of service,” the results showed.

A breakdown of those opposed to service charges shows that 20% plan to fight and not pay the additional charge, 37% of respondents plan to avoid restaurants that charge service charges, while 13% plan to avoid eating in restaurants.

In other cases, 28 percent expressed willingness to pay a service fee if it was part of the bill, while 2 percent of respondents were undecided about their course of action. LocalCircles conducted a nationwide survey that received over 21,000 responses from consumers located in 291 districts.

When asked about their experiences, of those who had poor or poor service experiences, 23 percent said it happened once or twice, 18 percent said it happened three to five times, and Worse still, 24 percent of respondents said it had happened as much 6-10 times, while 6 percent were among those who had a bad service experience despite having service charges taken from the bill, more than 10 times.

LocalCircles said it would share the findings of this report with the CCPA and the Department of Consumer Affairs so that they take action to defend consumer rights.

In its response to the verdict, the National Restaurant Association of India (NRAI) said it had always been firm in its assertion that there was nothing illegal about the charging of service charges and that it s It was a very transparent system.

The CCPA said the consumer can ask the hotel or restaurant concerned to remove the service charge from the amount of the bill. The consumer can also file a complaint against unfair commercial practices with the Consumer Commission.

Source: IANS

7 in 10 consumers are not satisfied with meeting CCPA restaurant service fee standards

About Gopi

Gopi Adusumilli is a programmer. He is the editor of SocialNews.XYZ and president of AGK Fire Inc.

He enjoys designing websites, developing mobile apps and publishing news articles from various authenticated news sources.

As for writing, he enjoys writing about current world politics and Indian movies. His future plans include developing SocialNews.XYZ into a news website that has no bias or judgment towards any.

He can be reached at gopi@socialnews.xyz

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Disgruntled Delhi HC consumers stay on restaurant service charge https://goniyon.net/disgruntled-delhi-hc-consumers-stay-on-restaurant-service-charge/ Tue, 26 Jul 2022 03:15:19 +0000 https://goniyon.net/disgruntled-delhi-hc-consumers-stay-on-restaurant-service-charge/ July 26, 2022, New Delhi: Just when the sentiment of eating out was expected to surge, the Delhi High Court’s July 21 order suspending recent CCPA guidelines banning hotels and restaurants from Automatically deducting a service charge from food bills has come as a shock to consumers, a new LocalCircles survey reveals. The High Court’s […]]]>

July 26, 2022, New Delhi: Just when the sentiment of eating out was expected to surge, the Delhi High Court’s July 21 order suspending recent CCPA guidelines banning hotels and restaurants from Automatically deducting a service charge from food bills has come as a shock to consumers, a new LocalCircles survey reveals.

The High Court’s order on a petition by the National Restaurant Association of India (NRAI) and the Federation of Hotel and Restaurant Associations of India challenging the 4th of July guidelines of the Central Protection Authority (CCPA) reopened the contentious issue of the collection of service charges imposed on consumers who eat in air-conditioned restaurants.

While leaving the choice of eating in a restaurant to consumers, the HC ordinance specifies that the stay is subject to the members of the petitioners ensuring that the collection of service charges in addition to the price and taxes and the customer’s obligation to pay the same is duly and visibly displayed on the menu or elsewhere.

Ordering restaurants not to levy a service charge on takeout or delivery, the HC scheduled the case for a rehearing on Nov. 25.

To understand what consumers think about the suspension imposed by the Delhi High Court on CCPA guidelines limiting the collection of service fees, LocalCircles conducted a nationwide survey that received more than 21,000 responses from consumers located in 291 districts of India. 66% of respondents were men while 34% were women. 44% of respondents were from Tier 1, 33% from Tier 2 and 23% from Tiers 3, 4 and rural districts.

In the first survey, consumers were asked about their contribution to the Delhi High Court’s stay order on CCPA and the approach they will take when visiting restaurants. Of 10,244 survey respondents, 70% of respondents revealed their intention to refuse to pay it or avoid restaurants that would charge it. The consumer claim is that most customers in air-conditioned restaurants tend to tip staff in the normal course based on the quality of service. A breakdown of those opposed to service charges shows that 20% plan to fight and not pay the additional charge, 37% of respondents plan to avoid restaurants that charge service charges, while 13% plan to avoid eating in restaurants. In other cases, 28% expressed a willingness to pay a service fee if it was part of the bill, while 2% of respondents were undecided about their course of action. Consumer sentiment clearly seems to have deteriorated.

Restaurant service charge issue: While Delhi High Court upholds CCPA ruling banning service charge, 20% of consumers say they will fight and not pay service charge, while 37% say they will avoid restaurants that charge them.

Restaurant service charge issue: While Delhi High Court upholds CCPA ruling banning service charge, 20% of consumers say they will fight and not pay service charge, while 37% say they will avoid restaurants that charge them.

Since 2017, LocalCircles has been working to raise awareness on the issue of service charges levied by air-conditioned restaurants. The consumer community via LocalCircles has also repeatedly escalated the issue to the Department of Consumer Affairs (DoCA), which is part of the Department of Consumer Affairs, Food and Public Distribution, leading to the government declaring the restaurant service charges as an unfair business practice in 2017. With the problem persisting until 2020 and even after the pandemic, the Central Consumer Protection Authority or CCPA revisited the issue, held discussions with restaurant associations and released guidelines on July 4 limiting the collection of enforced service charges by restaurants. Most restaurant associations maintain the position that service fees help employees and also consumers. However, consumers have collectively been clear since 2017 that the biggest issue is paying service fees in situations where the service experience has not been good. Some restaurateurs maintain that these situations are rare.

To understand the frequency of these consumer experiences, LocalCircles asked consumers if they had one or more such experiences in the past 5 years where an air-conditioned restaurant service fee was charged but the service was less. expectations to. 71% of respondents said they had had such an experience in the past five years. Of those who had poor or poor service experiences, 23% said it had happened once or twice, 18% said it had happened three to five times, and even worse, 24% of respondents revealed that this had happened up to 6-10 times, while 6% were among those who had a poor service experience despite the service charge being deducted from the bill, more than 10 times. The poll reflects why the majority of consumers are so opposed to enforced service charges.

71% of consumers who have visited an air-conditioned restaurant in the past 5 years report having had one or more experiences where they were charged a service fee when the service was below expectations

71% of consumers who have visited an air-conditioned restaurant in the past 5 years report having had one or more experiences where they were charged a service fee when the service was below expectations

In summary, the survey clearly indicates that consumers as a whole are not happy with the Delhi High Court’s CCPA guidelines which restricted the levying of service charges by restaurants. 20% of consumers are likely to fight at restaurants to reverse it, while 37% will avoid visiting restaurants that charge service fees. Another 13% are likely to stop eating out to avoid the dilemma and uncertainty of embarrassment. Additionally, the survey found that poor or poor service experiences were not that uncommon, with 71% of consumers surveyed saying they had one or more such experiences in the past 5 years and a service charge for them. have been billed. Overall, the survey says the writing is on the wall for restaurateurs: eliminate service charges and if the economy isn’t working, raise food prices, but make sure consumers have a high certainty and good quality experience with food and service to keep them coming back.

LocalCircles will share the findings of this report with the CCPA and the Department of Consumer Affairs as they move to advocate for consumer rights, they have access to consumer momentum.

Survey demographics

Over 21,000 responses from consumers located in 291 districts of India. 66% of respondents were men while 34% were women. 44% of respondents were from Tier 1, 33% from Tier 2, and 23% from Tiers 3, 4 and rural districts. The survey was conducted through the LocalCircles platform and all participants were validated citizens who needed to be registered with LocalCircles to participate in this survey.

About Local Circles

LocalCircles, India’s leading community-based social media platform, empowers citizens and small businesses to escalate issues of policy interventions and enforcement and empowers government to develop citizen-centric and small business policies. companies. LocalCircles is also India’s No. 1 pollster on governance, public interest and consumer issues. To learn more about LocalCircles, visit https://www.localcircles.com

All content of this report is copyright of LocalCircles. Any reproduction or redistribution of the graphics or the data contained therein requires that the LocalCircles logo be accompanied. In the event of a violation, LocalCircles reserves the right to take legal action.

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Restaurant Service Charges: The NRAI will issue notices to members on reporting service charges on menu, in-store signage, tables https://goniyon.net/restaurant-service-charges-the-nrai-will-issue-notices-to-members-on-reporting-service-charges-on-menu-in-store-signage-tables/ Thu, 21 Jul 2022 03:14:00 +0000 https://goniyon.net/restaurant-service-charges-the-nrai-will-issue-notices-to-members-on-reporting-service-charges-on-menu-in-store-signage-tables/ The Indian Restaurant Association, or the National Restaurants Association of India (NRAI), will issue notices to its 5 lakh members to prominently state at all their outlets that they levy service charges on consumer bills, menus, posters at points of sale and on tent cards on tables. This follows suspension guidelines from the Delhi High […]]]>
The Indian Restaurant Association, or the National Restaurants Association of India (NRAI), will issue notices to its 5 lakh members to prominently state at all their outlets that they levy service charges on consumer bills, menus, posters at points of sale and on tent cards on tables. This follows suspension guidelines from the Delhi High Court issued by the Central Consumer Protection Authority (CCPA) which prohibited restaurants and hotels from levying service charges on bills.

“We are telling all NRAI members to declare up front that they are taking service charge not only from the menu as ruled by the Delhi High Court today but also to put up posters and cards of tries on the tables regarding service charges so that consumers are fully aware. before placing orders,” said Riyaaz Amlani, managing director of Impresario Handmade Restaurants, which operates Social and Smoke House Deli.

“We are also advising members that they cannot charge a service charge on takeout. If a restaurant does not comply, then it is bad practice and consumers can make the problem worse,” Amlani said.

ET had reported in its July 6 edition that the NRAI was exploring legal options to challenge the government’s order prohibiting restaurants and hotels from adding service charges to bills. At the time, restaurant industry executives said they were “not sure how to take customer consent – whether there is a form or a set procedure”. Hospitality industry associations have also said they will seek clarification from the government on the guidelines.

According to the CCPA, restaurants and hotels must “clearly inform consumers that service charges are voluntary, optional, and at the discretion of consumers, nor may they restrict entry or deny services based on collection of service charges.

Watch: Here’s what to do if a restaurant charges you a service charge

The Central Consumer Protection Authority (CCPA) issued guidelines on Monday 04 July, calling restaurant service charges an unfair business practice. Following the ruling, restaurateurs nationwide are exploring legal options to challenge the government’s order prohibiting restaurants and hotels from adding service charges to bills. In this video, we decipher why it is a subject of contention. Look!

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Meet the kitchen assistant robots that are revolutionizing food service https://goniyon.net/meet-the-kitchen-assistant-robots-that-are-revolutionizing-food-service/ Fri, 17 Jun 2022 16:06:18 +0000 https://goniyon.net/meet-the-kitchen-assistant-robots-that-are-revolutionizing-food-service/ It’s hard to believe that an investment opportunity could be so tasty. Miso Robotics solves one of foodservice’s biggest problems with advanced, fully automated kitchen assistants designed for commercial-scale fast food restaurants. With the potential to triple restaurant margins and double production, there is no doubt that 10 of the top 25 fast food brands […]]]>

It’s hard to believe that an investment opportunity could be so tasty.

Miso Robotics solves one of foodservice’s biggest problems with advanced, fully automated kitchen assistants designed for commercial-scale fast food restaurants. With the potential to triple restaurant margins and double production, there is no doubt that 10 of the top 25 fast food brands have already started working with the company.

After all, this $300 billion industry has been plagued with major challenges. Despite spending $70.3 billion annually on labor, workers are leaving the restaurant industry in droves, and it’s not going to slow down anytime soon. In fact, the labor shortage went from 4.8% to 6.9% last year alone.

To make matters worse, restaurants are already skating on wafer-thin margins of just 5%. With high employee turnover, exorbitant overhead costs and plummeting profit margins, restaurants are struggling to maintain their margins, let alone increase them.

But a new trend is emerging. Brands are starting to realize that there is a way to solve this growing problem. It’s called automation – and Miso Robotics is leading the way. Their automated kitchen assistants do all the heavy lifting in restaurant kitchens, filling in some of the biggest gaps in back-end operations.

The best part? Miso’s kitchen assistant robots have the potential to triple restaurant profit margins by reducing costs. They work twice as fast and can increase food production by 30%. Plus, their compact design allows them to fit easily into even the tightest of spaces.

From grilling to frying to filling drinks, Miso’s kitchen assistants, Flippy and Sippy, give restaurant staff the time and space they need to focus on the most important part of the meal. work: customer service.

Consider the labor shortage solved.

Right now, Miso Robotics is on the fast track to success. The company has already brought advanced automation to renowned international fast food brands, including White Castle and CaliBurger. In fact, White Castle saw such a positive impact on the productivity of its Miso test that it decided to roll out Flippy to another 100 of its standalone sites.

Even global multi-brand restaurant company Inspire Brands — parent company of Buffalo Wild — is tailoring Miso’s robots to its exact needs with Flippy Wings, the only robotic chicken wing frying solution designed for high-volume restaurants.

To top it off, Miso’s latest partnership is with Jack in the Box, which just launched a pilot program with the robotics company to improve restaurant efficiency and increase revenue. This could open the door for Flippy and Sippy to integrate into more of its 2,200 locations in the United States.

All of these partnerships put Miso well on the way to capturing the US foodservice market, which includes up to 250,000 fast food restaurants nationwide.

With strong traction underway, Miso Robotics is poised to continue pushing forward and capturing interest from other top brands in need of automation. The company has already leveraged over $50 million in investments by continuously developing and optimizing existing kitchen automation technologies. The latest version of Flippy is smarter, faster, lighter and more modular than ever. Now they continue to fundraise for new advancements and develop robots for even more commercial kitchen tasks.

Miso Robotics’ idea of ​​cooking your next fast food meal could become a reality – and soon. Now you can invest in the highest performing automated frying solution available today and be part of the automation revolution. Secure your shares in Miso Robotics before the company’s funding round closes on June 23.

Miso Robotics is offering securities by way of an offering statement that has been qualified by the Securities and Exchange Commission under Level II of the A regulations. A copy of the final offering circular that forms part of the statement can be obtained from: Miso Robotique.

You should read the offering circular before making any investment. This paid content was prepared solely by Miso Robotics and does not necessarily reflect the views of Insider or its employees. It may contain forward-looking statements and information relating to, among other things, its business plan and strategy, as well as its industry. These statements reflect management’s current views with respect to future events based on information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements as they are for illustrative purposes and do not represent guarantees of future results, levels of activity, performance or achievements, all of which cannot be made. Further, no person or other person or entity assumes responsibility for the accuracy or completeness of any forward-looking statements, and is under no obligation to update such statements to conform to actual results.

This post was created by Miso Robotics with Insider Studios.

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Petr Torák, MBE, refused catering service in the Czech capital because he is Roma – the interview will be broadcast in Czech at 8:00 p.m. CET https://goniyon.net/petr-torak-mbe-refused-catering-service-in-the-czech-capital-because-he-is-roma-the-interview-will-be-broadcast-in-czech-at-800-p-m-cet/ Mon, 13 Jun 2022 16:49:00 +0000 https://goniyon.net/petr-torak-mbe-refused-catering-service-in-the-czech-capital-because-he-is-roma-the-interview-will-be-broadcast-in-czech-at-800-p-m-cet/ He left Liberec for Britain over twenty years ago due to racism. There he became a police officer, Queen Elizabeth II herself congratulated him on his work, and since last year he has been an honorary consul of the Czech Republic in England. Despite this, during a recent visit to Prague, Petr Torák again encountered […]]]>

He left Liberec for Britain over twenty years ago due to racism. There he became a police officer, Queen Elizabeth II herself congratulated him on his work, and since last year he has been an honorary consul of the Czech Republic in England.

Despite this, during a recent visit to Prague, Petr Torák again encountered the treatment that prompted him to leave his homeland two decades ago. He claims to have been refused service in a restaurant in the center of the metropolis.

“What more can we do to prove that we are equal? All our lives we’ve been taught to act decent, to speak grammatically, to have a good job… and even when we do, it’s still not enough for some people,” Torák posted on his Facebook profile. the unpleasant experience of early June.

“I waited in this restaurant for about half an hour before they served me. I noticed that people who came later than me already had their food on their table when I still didn’t no menu, no water. The waiter’s approach convinced me that he didn’t want to serve me because I’m Roma,” Torák said in an interview with ROMEA TV.

He reportedly wrote an email to the restaurant describing the whole unpleasant experience. In that post, he also asked the restaurant to hold the server accountable for his behavior.

“So far I haven’t received a response,” Torák told ROMEA TV. Tabloid news server Extra.cz also reported on the incident, but the company running the restaurant did not respond to their written questions.


Their reporters then went straight to the restaurant for a response. “I don’t even want to comment on this, I’m not the owner of the company. I don’t agree with such actions – if this happened, then of course it was wrong. If he really wasn’t served, so it doesn’t matter if it’s black, green or white, it shouldn’t matter,” Extra.cz quoted an unidentified restaurant worker as saying they identified as responsible. daily restaurant operations.

Restaurant Švejk, however, rejects allegations of racism. Torák said he was not yet considering legal action against the restaurant and did not plan to turn to the police or, for example, the Czech Trade Inspection Authority over the incident. .

At the same time, however, the former police officer added that he wanted to highlight the ever-increasing number of such cases that happen to Roma in the Czech Republic in everyday life. “We have to point the finger at those companies, not just those in the hospitality industry, but also real estate agencies and employment agencies where such unfair practices against Roma also take place,” he told ROMEA TV.

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Nothing justifies the restaurant’s service charge; law to end it is just https://goniyon.net/nothing-justifies-the-restaurants-service-charge-law-to-end-it-is-just/ Sat, 04 Jun 2022 01:00:09 +0000 https://goniyon.net/nothing-justifies-the-restaurants-service-charge-law-to-end-it-is-just/ If a restaurant feels that their service expenses are not fully accounted for by the price of the menu, they can by all means increase the price of the menu transparently. Predictably, the National Restaurant Association of India reacted angrily to the Centre’s move. Representative picture In the United States and some other jurisdictions, it […]]]>

If a restaurant feels that their service expenses are not fully accounted for by the price of the menu, they can by all means increase the price of the menu transparently.

Predictably, the National Restaurant Association of India reacted angrily to the Centre’s move. Representative picture

In the United States and some other jurisdictions, it is common for restaurants to advertise on their menu cards that a service charge of, say, 10% of the food bill will have to be paid on top. And that this service charge goes to the restaurant staff as a tip.

Implicit in this disclaimer is the supposed dignified message that this is not an act of self-aggrandizement on the part of the restaurant. On the contrary, it is altruism at work. Concern for the workers. Hit !

Your sincere has often joined the issues with his son over this when he visits the United States. He generously pays the service charge included in the bill, further increased with the stroke of a pen towards an even more generous tip to the waiter. When I protest against this gushing and unjustified munificence, he reproaches me for being heartless! Sometimes the reprimand takes on a withered air. Indians working in the United States remember their student years there with a touch of nostalgia and therefore sympathize with the waiters and stewards.

Misperceived service charges

Back home in India, as diners in a mood of supreme satisfaction generously tip the waiter in cash, letting out a delicious burp even when paying the restaurant with a credit card, they resent the expense of service imposed by restaurants.

In April 2017, the Department of Consumer Affairs heeded their grievance and issued guidelines stating that such service charges should be declared in advance as both optional and voluntary. As is well known, the guidelines do not have the force of law and, unsurprisingly, restaurants have, on the whole, smiled on them. The last straw on the camel’s back was the insults heaped on reluctant diners by restaurateurs and their staff with sarcastic remarks.

So the government called a meeting of all stakeholders on June 2, 2022 and read the riot law to the recalcitrant restaurants – your greed would be tamed by the legislation. An amendment to the Consumer Protection Act can be expected to make the mandatory collection of service charges by restaurants an unfair or restrictive business practice.

Read also : SPAC in India: let’s not tempt small investors with more mirage

The National Restaurant Association of India predictably reacted angrily to the decision. He reiterated his now familiar argument, with a touch of feigned altruism — after all, we don’t pocket the service fee, but we pass it on to the staff. Cynics wonder whether restaurants, many of whom don’t pass on the service charge levied on diners to the government, would bother to pass the service charge on to staff, many of whom work on starvation wages. Whatever.

The debate over whether a restaurant is a seller of goods or a provider of services is as old as the hills. The GST law has fortunately settled the question because, of course, the law does not hesitate between the two. A total of 5% is service tax on restaurant bills, period, regardless of whether and how much the consumer is paying for goods or services. As the 2017 guidelines rightly point out, service tax (now GST) is paid by all willy-nilly, but the service charge sticks out like a sore thumb. For them, it is simply a duplication.

Transparency in price increases

Duplication, however, can be understood on a more rational level. The guidelines correctly point out that if a restaurant feels that its service expenses are not fully reflected in the menu price, it can by any means transparently increase the menu price. It is then up to the guest to decide whether to frequent the restaurant or go to someone who offers the same price at a more reasonable price.

The advent of feed aggregators has made the terrain even stranger. Zomatos and Swiggys around the world are reported to channel 26% of the bill into their restaurant service charges and only pay restaurants the balance. So, will the real service provider rise? It’s sort of poetic justice — the greed of restaurants matched by that of food aggregators!

Read also : From ‘Dishy Rishi’ to ‘Fishy Rishy’, Sunak’s popularity is going for a draw

The truth is that all service providers, whether hospitals, airlines or restaurants, are eager to get the most out of their customers. The service charge is convenient. Airlines charge boarding passes and online ticket reservations separately. Hospitals bill doctors, nurses and ward boys separately.

They all forget that none of them operate in a cost-plus pricing environment, but in an ecosystem where their pricing is supposed to capture all costs and leave a decent profit for owners, which no one is outraged about . What we hate is the sleight of hand in the form of surreptitious add-ons like service charges.

The government would do well to change the law comprehensively and not piecemeal. Restaurants aren’t the only ones showing a propensity for greed.

(The author is CA qualified and writes on business, consumer issues and tax laws.)

(The Fed seeks to present views and opinions from all sides of the spectrum. The information, ideas or opinions contained in the articles are of the author and do not necessarily reflect the views of the Fed)

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Food Service Fee Line: What People Have to Say https://goniyon.net/food-service-fee-line-what-people-have-to-say/ Fri, 03 Jun 2022 07:00:00 +0000 https://goniyon.net/food-service-fee-line-what-people-have-to-say/ As the debate centers on the legality of service charges levied by restaurants and hotels, with the Department of Consumer Affairs taking charge of revising a robust framework to ensure strict compliance by stakeholders, netizens have turned to Twitter to share how they really feel. on the service that reaches millions of consumers daily. While […]]]>

As the debate centers on the legality of service charges levied by restaurants and hotels, with the Department of Consumer Affairs taking charge of revising a robust framework to ensure strict compliance by stakeholders, netizens have turned to Twitter to share how they really feel. on the service that reaches millions of consumers daily.

While some called it an “underhanded practice” or “ridiculous,” others weighed in on paying workers a decent minimum wage. Here are some of the answers:

“It’s an underhanded practice and needs to stop. A lot of people don’t pay tips assuming that those service charges go to restaurant serving staff. That’s often not the case. It’s just a way to ‘increase profit margins for owners,’ tweeted filmmaker Pritish Nandy.

Notably, the Department of Consumer Affairs, Food and Public Distribution said in a statement Thursday, “As this affects millions of consumers daily, the Department will soon provide a robust framework to ensure strict compliance by stakeholders. “

In a meeting on Thursday, the top issues raised by consumers on DoCA’s National Consumer Hotline regarding service fees such as the mandatory levying of service fees, the addition of default fees without the express consumer consent, deleting that such charges are optional and voluntary and embarrassing consumers if they resist paying such charges, etc. were discussed. In addition, the Fair Business Practices Guidelines Related to Service Charge Charging by Hotels and Restaurants dated April 21, 2017 issued by the DoCA were also referenced, according to the release.

Meanwhile, the United Restaurant Associations argued that “where a service charge is mentioned on the menu, it implies an implied consent of the consumer to pay the charge”. Service fees are used by restaurants and hotels to pay staff and workers and are not charged for the experience or food served to consumers by the restaurant/hotel.

Consumer organizations have pointed out that charging service fees is patently arbitrary and constitutes an unfair and restrictive business practice under consumer protection law. Questioning the legitimacy of such a charge, it was pointed out that since there is no ban on restaurants, hotels on setting their food prices, including an additional charge on behalf service charges is detrimental to consumer rights.

According to a directive issued by the Ministry of Consumer Affairs in April 2017, the fact of placing an order by a customer is equivalent to his agreement to pay the menu prices as well as the applicable taxes. Charging anything other than the above, without the express consent of the consumer, would amount to an unfair trade practice under the law, the department said.

Furthermore, treating a customer’s entry into a restaurant, hotel as implied consent to pay a service charge would amount to imposing an undue cost on the customer as a precondition to placing an order for food and would fall under the a restrictive business practice under the Act, he said.

(With agency contributions)

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Can you say no to the restaurant service charge? https://goniyon.net/can-you-say-no-to-the-restaurant-service-charge/ Fri, 03 Jun 2022 07:00:00 +0000 https://goniyon.net/can-you-say-no-to-the-restaurant-service-charge/ The issue of service charges has once again brought to light the controversial practice of levying a mandatory voluntary cost on the food bill. A once discretionary practice considered a gracious practice has become a mandatory addition to the total bill in many restaurants today unmatched in service and without a grain of discretion. […]]]>

The issue of service charges has once again brought to light the controversial practice of levying a mandatory voluntary cost on the food bill.


A once discretionary practice considered a gracious practice has become a mandatory addition to the total bill in many restaurants today unmatched in service and without a grain of discretion.


There seems to be a charge for food prepared in the kitchen and then there is a charge for food to be served at the table. On top of that, a third of restaurant customers don’t even notice service charges on their bills, according to a recent survey by LocalCircles.


In fact, many customers often confuse service charge with service tax, which is a legal charge under the GST. To understand the overall charges levied on the bill amount, it is important to know the elements that make up the total food bill.



The following charges and taxes are deducted from the total invoice amount: –
1. Service fees
2. A 5% GST on food services including take-out meals. A GST of 18% is levied if a restaurant is located inside a hotel where the room rate is above Rs 7,500.
3. Service tax

Although the government has made the GST mandatory, the service charge is optional.

What is a service charge? Why is it taken?

A service charge is added to the total amount of the bill to be paid by a customer after eating in a restaurant. It is a levy used by restaurants to pay their staff and workers and it is like an incentive for them. A service fee is like payment for services rendered and is not imposed by the government. Generally in the range of 5% to 15%, service charges are added to the total amount of the invoice and can be refused by a customer. However, restaurants have made it a mandatory tip that a customer must pay.

The issue of service charges has been in contention for years now. Where the government has called it an “unfair commercial practice” leaving customers the right to decide whether or not they want to pay a service charge, restaurateurs are defending the practice saying that several statements are made on the premises so that customers know that they will have to shell out such a charge if they eat at their business.

“…service charges are intended for the benefit of the staff and so some establishments make a conscious choice to adopt a policy beneficial to their staff members. The levying of service charges is a general practice adopted throughout the world It is neither illegal nor violated any law,” said Federation of Hotel and Restaurant Association of India (FHRAI) Vice President Gurbaxish Singh Kohli.

Why is the service tax charged?

Service tax is a statutory (government imposed) levy under the GST. It is levied on the service provider but is ultimately borne by customers using a specific service. According to a recent amendment, the service tax will only be charged if the restaurant is air-conditioned. Previously, a restaurant also had to have a bar, but the requirement has been removed.

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