Why should restaurants levy separate charges in order to make up for the services charges which were removed from bills? Yes, that’s what the Delhi High Court thinks! And the judges said that the average person eating at a restaurant looks at service charge as something levied by the government. They said that restaurants can increase the food prices rather than charging it additionally. Read on to know the deets –
Restaurants To Charge More On Food Instead Of Service Charges?
The Delhi High Court was hearing the matter wherein an order prohibited restaurants from charging ‘service charges’ on bills. One of the restaurant counsels during the hearing told that the restaurant service charges was not for the government and more for the benefit of the employees. They also said that it was not meant to be a substitute for tips either. The court replied to this by saying that the service charges also have as much to do with the consumers too and not just the employees of the restaurants.
Also Read – Relief For Restaurants After Delhi High Court Stays Guidelines Prohibiting Service Charge
Service Charges Taken By Restaurants For Over 80 Years
There were also complaints received by consumers who faced embarrassment on not paying the service charges. The court said, ‘Can they compel a person to pay any kind of service charge? You are the master of your price but you can’t then place an additional price that you pay an additional charge.’ The counsels appearing for the restaurants told that when restaurants state that they would levy service charges, it becomes as a matter of contract between the restaurants and the consumers.
‘The Court further said, ‘A person who does not know the law or an illiterate person goes to a restaurant, you mean to say he is entering into a contract? A person who does not understand law goes for a cup of tea, so he is entering into a contract and he has to pay the service charge.’
Also Read – Should You Pay Service Charge At Hotels And Restaurants? Here’s The New Rule
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