Service charges: service charge on food bill ‘unfair’, Sobo Eatery must pay | Mumbai News

Mumbai: Girgaum Chowpatty-based Cream Center is guilty of unfair trade practices and adopts restrictive trade practices by charging a mandatory service charge of 5% on food and beverage bills. A district consumer committee has ordered the company to refund the service charge of Rs 29 with compensation of Rs 25,000 to a city lawyer. The committee said the restaurant’s action to impose a mandatory 5% service charge on top of food and drink bills wrongly indicates that its services are of a certain standard and quality, and great because they offer a range of other services including the atmosphere of the restaurant, the air conditioning, crockery, carpets, furniture, staff including waiters for service. “It is the bouquet of additional services that essentially completes the experience of customers who choose to dine at the restaurant. Building this narrative to collect 5% mandatory service charges from customers is highly objectionable and illegal and therefore cannot be justified at all,” the committee said. The commission also said that gratuity or gratuity are separate transactions between customer and service staff. “The hotel management plays no role in this. It is up to the customer to determine the amount of the tip and gratuity,” the commission said. Marine Lines-based Yogesh S Patki filed a complaint against the restaurant owner, Prince Keukens Pvt Ltd, with the South Mumbai District Consumer Disputes Redressal Commission on July 21, 2017. The company denied all allegations and stated that it was a leading service provider in the hospitality industry. industry, which has operated a restaurant chain in the name and style of Cream Center since 1958. It was also alleged that the restaurant charges a service charge for customers who dine alone in the restaurant. It was also alleged that the amount of the service charge was prominently displayed in several conspicuous places throughout the restaurant, including the entrance door, reception area and menu. The committee points out that the service costs are stated on the menu in such a way that every customer will think that this is a legal charge. “The presentation of the wording of the service tax and service charge together in one line creates the belief that this is a statutory charge and that the hotelier or restaurant owner is authorized by law to collect it from him/her, which is incorrect,” it said Commission. The commission has directed the restaurant to stop mandatorily charging service charges to its customers if they are still charging as per the previous practice.

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