On Monday, the Central Consumer Protection Authority (CCPA) prohibited eateries from automatically or by default levying service charges on food bills. It also allowed customers to file complaints in the event of a violation, requesting the concerned establishment to remove it from the bill amount.
The decision is getting a mixed response from the restaurateurs. While some are feeling anxious as they think this isn’t in the welfare of their staff, others say the decision was much needed!
Puneet Gupta, owner, Dhaba 7, Deluxe Dhaba and Ni Hao, says, “This practice (service charges) is prevalent in many countries across the world. If a customer is informed and the service charge is clearly mentioned by the restaurants, it should have been allowed.”
“It was motivating for the staff as the amount collected majorly went to the service and kitchen staff. A framework should have been made to be fair to consumers and restaurants rather than just not allowing it,” Gupta adds.
Brooklyn Central’s Annu Bains, says, “We had stopped taking service charges long back and I completely agree with the CCPA’s decision.”
Sunveer Sondhi, who owns a chain of around 40 restaurants, says, “It’s a great step as many people do not really want to pay service charges. And as we are in the hospitality industry, we should always strive to achieve customer satisfaction. At our restaurants, we’ve never taken service charges from customers.”
{{/usCountry}}Sunveer Sondhi, who owns a chain of around 40 restaurants, says, “It’s a great step as many people do not really want to pay service charges. And as we are in the hospitality industry, we should always strive to achieve customer satisfaction. At our restaurants, we’ve never taken service charges from customers.”
{{/usCountry}}Customers feel that they can now decide how much to tip based on their experience and the service. Foodie Mallika Singh says she is happy with the decision. “This comes as a relief to people who love to eat out. We would pay the service charge but had no way to know that it actually did get to the staff. But now, we can tip as per our choice and won’t feel forced to shell out a fixed rate.”
Another foodie Naveen Kaushal says, “Most restaurants in Chandigarh are anyway not charging it. But with the ones that do, the service is not always up to the mark and we are anyway forced to pay service charges. So, I support the move and will surely leave a good tip every time I get satisfactory service,” he adds.