Restaurant Service Charges: The NRAI will issue notices to members on reporting service charges on menu, in-store signage, tables
“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!