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WorklifeIndia: Eating out: Should service charge be mandatory?

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Eating out: Should service charge be mandatory?

15/07/2022 GMT

BBC World Service - WorklifeIndia, Eating out: Should service charge be mandatory?

Will removing a service charge hurt an already suffering industry?

Should diners have the discretion to accept or reject charges beyond their food bill? And will removing a service charge hurt an already suffering industry?

The practice of tipping is widespread across the world. But when to tip, how much and to whom are questions that often stump people. For example, in the US, it is customary to tip a restaurant server anywhere between 15-25%. In Japan, however, tipping is considered rude.

But should restaurants be collecting a mandatory service charge, irrespective of whether you are happy with the service you have received? This has become the core of an unsavoury debate in India, after a government order banned restaurants from levying a default service charge on food bills. The restaurant association is challenging this ban, saying it isn’t illegal and that the amount is important for staff welfare. Many also argue that Indians are not always “generous tippers”.

So, should diners have the discretion to accept or reject charges beyond their food bill? And will removing a service charge hurt an industry already suffering from the ill-effects of the pandemic?

In this edition of WorklifeIndia, we discuss whether a service charge should be mandatory when eating out.

Presenter: Devina Gupta
Contributors: Pradeep Shetty, joint honorary secretary, FHRAI; Nikita Varma, food influencer; Rekha Agarwal, lawyer, consumer rights activist

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