Restaurant 'Service Charges' - Unfair?

Colonel Sanders

I know that any restaurant that charges a service charge states so on the menu and as such surely aren't breaking any laws but charging for service on top of your food bill, is this sharp practice in the general scheme of things?

The way I look at it a company should charge a price suficient to cover the costs (inc staff) and a profit margin. The customer can then tip as much as they like as an 'extra' for good service if they choose to do so (thats the whole concept of a tip). I don't understand how some places can then charge and additional 10-15% for service.

Nody

Colonel Sanders wrote:

I don't understand how some places can then charge and additional 10-15% for service.

Because most people don't think about it and hence see it as cheaper then the other resturant next door which has 10-15% higher prices and no service fee.

antoinolachtnai

This is complicated. It's like this for a few reasons.

There is a 10 percent (not sure about the exact number) service charge in the unionized hotels in Dublin. This was the result of a wage agreement in the late 1970s after a prolonged strike. There are many arguments to be had about this service charge. Who should get it? (Not temporary/contract staff, it would seem quite often) Should it be included in the reckoning of whether you are being paid minimum wage? (yes, so the base wage can be below minimum)

Obviously, this practice applies to hotel restaurants. But other places seem to follow their practice.

I once refused to pay the service charge in the Montrose Hotel restaurant. The reason was that the service was of such a poor standard that I wouldn't pay for it. It wasn't just inattentiveness, the waiter was serving food across the diners and other things that you just don't do. The manager didn't argue with me.

Second issue is large tables. It's common and I think reasonable to have a service charge for large tables. The reason is that large tables put a lot of pressure on the kitchen and on the waiting staff compared to 2's and 4's. There really needs to be something in it for the staff to make catering a large table worthwhile. Some Irish people don't tip, and that's why this is done.

Otherwise, I agree with the OP.

Colonel Sanders

Nody wrote:

Because most people don't think about it and hence see it as cheaper then the other resturant next door which has 10-15% higher prices and no service fee.

tbh any restaurant I've been in w/o a service charge has tended to be as expemsive as those with.

thanks for the reply anto

MOH

I've stopped going to all Little Caesar's in Dublin since they introduced/I noticed their service charge a couple of years ago.

I'll generally avoid any restaurant I know has a service charge. I'll always tip anyway, unless the meal/service is terrible, but I don't appreciate being put in a position where I'm expected to.

Plus I've often found that if I'm just popping in somewhere for a quick main course, the service charge comes to less than what I'd tip if there was none.

Ah, well done Google. I knew this came up earlier this year. Some good points made here, including the fact that apparently you can't legally be made to pay it.

antoinolachtnai

This is just not true. There is nothing special about the service charge that you aren't obliged to pay it to the same degree as all the other things on the bill.