43% Indians Paid Service Charge In 3 Months; Only 9% Got It Waived Off At Restaurants When Dining

by Shreya Rathod
43% Indians Paid Service Charge In 3 Months; Only 9% Got It Waived Off At Restaurants When Dining

If you are a frequent customer at restaurants, you might be familiar with the ‘service charge’ in your bill. Some restaurants also call it ‘staff welfare charges’. Well, many have confused these fees with the government’s GST. A survey regarding this issue was done by the LocalCircles and it was revealed that 43 per cent of Indians were forced to pay restaurant service charges!

Do You Still Pay The Restaurant Service Charge?

restaurant service charges
Credits: Canva

LocalCircles has been surveying people who dined at restaurants since 2017. In fact, through them, several consumers have approached DoCA, the Ministry Of Consumer Affairs and Food and Public Distribution. And this has resulted in the authorities declaring restaurant service charges as an unfair trade practice.

However, a majority of restaurant associations continue to hold the view that a service fee benefits both customers and employees. Also, it makes gratuities more transparent. However, the majority of customers disagree with the notion that restaurants are adding service charges forcibly or automatically to the bills.

Especially when the customer service received was subpar! Instead, they believe that service charges should be suggested with a checkbox or field where customers can indicate their consent.

Also Read: Should You Pay Service Charge At Restaurants? Govt. Clarifies After A Brawl Breaks Out In Noida

43% Of Indians Were Forced To Pay It!

restaurant service charge
Credits: Canva

The consumers who visited restaurants in the last 3 months were asked about their experience with the service charge. It was revealed that out of 11,066 people, 43 per cent paid the service charge levied by the restaurant. Only 9 per cent of them asserted their rights and got the staff to waive the fees.

30 per cent of the people revealed in this survey that not all restaurants were levying these charges. Whereas, 18 per cent of them revealed that they had no idea of this charge as someone else was paying the bill.

Most participants in community conversations emphasised that they paid the service charge despite occasionally receiving subpar service because they were in a formal, social, or familial situation and did not want to argue with the wait staff.

Also Read: Preity Zinta Finds Her Home Away From Home At This Indian Restaurant In LA!

Comment below and tell us if you also pay these charges. If you want to know more about the issue, read here.

Cover Image Courtesy: Canva