Foodies in Bengaluru face the ‘service charge’ dilemma

Consumer activists clarified that it is against the Central Consumer Protection Authority (CCPA) guidelines to force service charge upon consumers under any circumstance.  

“I had recently gone to a popular restobar in J.P. Nagar. While handing over the menu, the waiter also said that service charge was mandatory. When I questioned why they made it mandatory despite there being regulations against it, he replied that it was up to the management, and I ended up paying 10% service charge, which was around ₹150,” said Divya Rao, a marketing executive from Jayanagar. 

While the Central Consumer Protection Authority (CCPA) issued clear guidelines in 2022 that consumers cannot be forced to pay service charge, it remains a bone of contention among restaurateurs and consumers in Bengaluru.  

While any kind of service charge is not levied at some restaurants, it is done so at other places, but removed when customers refuse to pay. But of late, customers have noticed a new trend, especially in high-end fine dining spots and restobars where it is mentioned in the menu that service charge is mandatory. While the food items themselves are expensive in such restaurants, the service charge, along with Goods and Service Tax (GST), further burns a hole in the pockets of customers.  

“The thing with high-end restaurants is that the management knows people usually make specific plans to visit them. They make it seem like if you are not willing to pay the service charge, then you can walk out. But most of us do not like to cancel our plans at the last minute as we would have already made reservations and travelled, and we end up paying the service charge reluctantly. I would much rather tip my waiter directly than being forced to pay the service charge,” said Preetham M., a software engineer who frequents new restaurants in Bengaluru. 

On the other hand, Chetan Hegde, who heads the Bengaluru chapter of National Restaurant Association of India (NRAI), said that most “mid- and high-range“ restaurants have a mandatory service charge.  

“It is made very clear to the customers when they choose to go to certain restaurants that they have to pay a certain service charge, We display it at the entry itself. It is also explained that the service charge goes to the staff,” he explained.  

However, consumer activists clarified that it is against the CPPA guidelines to force service charge upon consumers under any circumstance.