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. This decision has left restaurateurs feeling anxious as they think this isn’t in the best interests of their staff.
Vik Katwani, founder, Earth Cafe Mumbai, says, “With this new rule, it feels like the F&B industry has been ignored and side-tracked, especially considering that we were one of the main industries that were affected during the pandemic. Due to Covid-19, we had to include a lot of new services like sanitising, extra housekeeping, better quality of packaging, etc., which were covered under service charges.” He further adds, “It will also affect our staff’s livelihood as they are mostly dependent on this. However, we have trust in our customers that they will appreciate our service and support us going forward.”
Satyajit Kotwal, general manager, The Resort Mumbai, says, “It will not and should not impact the hotel business. This notice on service charges is not a surprise. The Supreme Court issued a diktat on the service charge a long time ago. Many establishments were still charging without informing the guests, and this act of charging without informing or making them pay is a grave problem. Establishments can decide to charge only after informing guests, and if any guest objects, it should be easily removed from the bill.”
Customers, on the other hand, feel that they can now decide how much to tip based on their experience and the service. Aanchal Agrawal, who hails from Navi Mumbai, says, “I support this decision as now customer satisfaction will be given utmost priority, which was often ignored by hotels and restaurants in the past. As diners, we go to a restaurant not just to eat but to enjoy the overall service, ambience, and experience. This new rule will ensure that along with the quality of food, excellent service will also be maintained.”
{{/usCountry}}Customers, on the other hand, feel that they can now decide how much to tip based on their experience and the service. Aanchal Agrawal, who hails from Navi Mumbai, says, “I support this decision as now customer satisfaction will be given utmost priority, which was often ignored by hotels and restaurants in the past. As diners, we go to a restaurant not just to eat but to enjoy the overall service, ambience, and experience. This new rule will ensure that along with the quality of food, excellent service will also be maintained.”
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