Emma The divisive Service Charge
This “discretionary” charge used to linger at the bottom of menus usually attached to the words “when serving groups of 6 +” Now it seems that it is automatically added to the bill regardless of the number of diners.
What is a service charge?
A service charge is what restaurants charge to cover everything other than the food. Such as cleaning glasses, replacing napkins, overheads, that sort of thing.
What is the difference between service charge and a tip?
Service charge is an amount added to your bill before it is given to you. It is usually based on a percentage of the bill. It is often listed as “discretionary” or “suggested” you are free to make the payment or not. It’s not really discretionary is it if it is automatically added to your bill?
The service charge is received directly by the business who can decide what to do with it.
A tip is a voluntary payment to staff.
Can I ask for the service charge to be removed?
Yes, you are free to ask for the charge to be removed. However, I feel that many businesses know that customers won’t say anything and just pay it.
Why don’t businesses just increase their prices?
You’ll probably notice that they have, however, it’s that situation where a price looks better lower on the menu when being compared with another restaurant.
So, it’s like everything else in the world. It’s how you spin it. The addition of a service charge is being seen in more restaurants, customers don’t question it, so more restaurants do it. Add in a bit of British awkwardness to ask for it to be removed and you’ve added a layer of income to your business.
Personally, I think all the costs involved in providing a meal at a restaurant should be factored into the price and not an additional charge.
Just don’t start me on the tip button especially when you are buying a takeaway coffee!
What do you think?
