Service charge at restaurants

[TechHead]

Haha, Punjabi By Nature.. I've been to that place in Noida and GGN. They do a mean vodka golgappa, I'll grant them that.

Otherwise, I think you get better Naarth Indian food at Pandara Road

@asingh - just kidding.. I used to work in Infinity too, many lunches with bhookhe clients at the food court across the road, and at Papa Johns below the RBS office!

 

[icube]

i worked as a waiter in a three star hotel in chennai (2003-2006)

the hotel charges service charge of 10% and distribute 50% of total service charge to staff monthly

other half they use for purchasing glases, plates etc

i got 400-450 rs monthly at that time as service charge

my salary was 2000rs tips we get 500-700 rs monthly

after working for 3 years they gave me salary incriment of rs150 later i resigned and quit hotel industry

 

[MAGNeT]

i worked as a waiter in a three star hotel in chennai (2003-2006)

the hotel charges service charge of 10% and distribute 50% of total service charge to staff monthly

other half they use for purchasing glases, plates etc

i got 400-450 rs monthly at that time as service charge

my salary was 2000rs tips we get 500-700 rs monthly

after working for 3 years they gave me salary incriment of rs150 later i resigned and quit hotel industry

Thats horribly under paid.

My friend deals in glass supplying business to hotels and now has started serving them with dresses to waiters.And to be frank all this dressing and inputs are taken in wholesale from the cheapest area in mumbai which is somewhere in bhindi bazaar whole sale market.So i dont think they need to finance this from same.Also they already charging 15 rs product at 100 and also yes that 15rs product in wholesale might have come on credit plus at cheaper rate of 10.Thats why i guess underworld knows how much margin is there in this business hence they target hoteliers.

 

[madnav]

Service tax and service charge are two different things. Tax goes to govt. Charge need not. Moreover, restaurants levy a VAT, not ST. Atleast, I haven't seen restaurants levying ST over VAT. Anywhere the word 'tax' is used, it means something that the govt gets, so if someone is listing an item as tax, and not directing the proceedings to the govt coffers, he is guilty of tax fraud.

Since you mention the coke thing, I am reminded of this rule from the consumer act that any packed item cannot be sold at higher than MRP. Case in point, water bottles at multiplexes / malls / big hotels. If anyone is charging more than the MRP on an unopened bottle, they can be dragged to customer court. Most people don't bother thinking it is just 20 bucks or 30 bucks. However, this is clear violation of rules

you did not read my post. I have no confusion between tax and charge.

As for bottled water/beverages.

If it is a 'Retails Industry' then only MRP is applicable (Maximum Retail Price).

If it is a service Industry such as restaurant, MRP does not apply.

Multiplexes can sell at higher than MRP. They are Serving you. You are using their Service. You can not drag them to court.

 

[agantuk]

^ I am not sure about that last line, about service industry being allowed to charge more than MRP. There was this case of a consumer vs Satyam Cinemas (Delhi) where the consumer had sued the multiplex for charging more than the MRP for the water bottle. The court ruling was in favour of the customer with the note that since the water was being sold packed [the bottle was not opened before selling], they had no right to sell it for more than the MRP. Yes, had they opened the bottle and put a rate of say 100 bucks per glass, that would have been perfectly legal. That is what happens in restaurants which serve cold drinks in glasses. They can charge as they feel right. I have even seen restaurants which do not want to waste glasses in this manner put in something called a 'cooling charge' - a fee to keep the drink chilled. Perfectly justified

EDIT: This is the case I was referring to :

http://consumercases.in/consumerdigest/doc_download/25-unfair-trade

Go to page 6

Also, related news article: http://articles.timesofindia.indiat...98_1_cinema-hall-mineral-water-consumer-court

 

[MAGNeT]

As for bottled water/beverages.

If it is a 'Retails Industry' then only MRP is applicable (Maximum Retail Price).

If it is a service Industry such as restaurant, MRP does not apply.

Multiplexes can sell at higher than MRP. They are Serving you. You are using their Service. You can not drag them to court.

MRP shouldnt be on the bottle than.If there is MRP and if they charge more than its illegal.Thats why in some case consumer get upper hand if they serve it straight.Had they served in glass company would have won.

 

[Chaos]

This entire service charge thing imposed by certain restaurants is a scam. I go to a Vivanta daily since that is the only decent place worth eating in my office complex and if they do not charge this stupid service charge, I'm sure the others can do without it too. I do however agree that indians are horrible tippers. I have american friends who were waiters at one point in their student life and most of the time they hated it when they had to serve to indians simply because they refuse to tip.

I make it a point to tip atleast 10-15% in most places I visit if I get decent-good service and more if I get exceptional service. However when service is poor, I make it a point to call the maitre'd and explain what my issue is. In most cases, it is rectified immediately and mistakes can be forgiven since waiters are only human. However in the rare case its not, I do not leave a tip. This is super rare - I've only faced it once or twice.

We must remember that the service staff survive on tips. Their base salaries are low as they are supposed to cover it with tips.

All the above doesn't apply in certain countries like Japan, Taiwan and few others in the far east where tipping is a forbidden practice.

 

[rajeshjsl]

Lol also ask him, do they spit on the food of people who don't tip

did that thought came off after seing the movie "waiting" ??

and look what economic times quote about service charge should not be payed as its illegal ..

One fine day, walk into your favourite joint with at least 10 friends and just after ordering the meal declare that you are not going to pay the service charge. Mutiny.