Service Charge - Enforced Tipping

[TeeDee]

Had a pleasant enough Sunday roast out - I made an effort to travel a distance and support somewhere that caught my eye - new owners.
I can forgive the bringing out of the wrong main meals and the not so hot cheese cauli and Broc they served up. Because= small thing

The bit I have a mental issue with is a term that seems to be creeping into more and more eateries , and I want to know if I'm not seeing it in the correct light.

Service Charge - an automatic additional fee included within a bill to cover service of the said same food and drink that has been priced up ( represented on a menu ) and then served.

It irks me a tad as it seems a little bit like a tax upon a tax.


However - I know we have some people that work within the foody & culinary world so happy for someone to argue the point of why its right to be included .

I just can't think of another industry or area of service that includes it??
Am I the only ogre it irks?

 

[Toddy]

Irks me. It's creeping Americanisation of waiting staff's wages, I reckon.

 

[Chris]

Can't stand it.

I was in London on Wednesday for work and had dinner evening. There was a 10% service charge automatically added to the bill, and then when I went to pay by card the machine asked me if I'd like to add a tip on top.

Also went to a Pizza Hut a while back where you have to order using a QR code at your table, you go and get your own plate and cutlery and drink, so no waitress service. You also get asked if you want to leave a tip then, as well. A tip for whom? The app? Bog off!

Absolutely not something I'm willing to put up with.

 

[Pattree]

Agreed. I don’t tip except for exceptional service. I thought service charges were disappearing but I could easily be wrong.

Obviously it’s up to the business but in my view a service charge should be clearly displayed outside the premises along with a priced menu.

I also don’t like being guilt tripped when I pay with my phone and have to deliberately bypass the addition of a tip.

It’s probably a British thing where we want a clear price in advance. In America there can be two layers of tax and a practically obligatory tip to add to the stated price.

So if your business is going to charge me extras then I want to know before I sit down - and I well might not!

 

[hughtrimble]

It's basically an enforced tipping scheme in some places which specify that it goes to the staff. You can sometimes ask for it to be removed if you're not satisfied, or if you think (or know) the staff don't get the extra, but not always.

I try to ask the staff if they get the money and if they say they don't, I check to see if they get to keep/divvy out tips, and then I ask for the service charge to be removed and then leave a cash tip.

 

[Glow_worm]

I'll add my worthless opinion. I don't eat out, but if I did I wouldn't play the tips or service charge game. Just price the tat you're selling at a viable level to make a profit, like most other businesses.

 

[plastic-ninja]

As someone who has worked in hospitality for 20 years or so I feel I can help.
In the good old days when customers mostly paid cash there would be a tray on the bar with a notice saying “Tips”.
Most customers used to tip something unless they had a complaint about service or quality. If they’d loved the drinks the tips could be 25% of the bill. It made a huge difference to my wages & incentivised me to make great drinks & provide amazing service.
Fast forward to almost no cash sales & everyone paying by contactless phone. Regardless of quality the tips are very rare nowadays, and staff are leaving the industry because their wages have in some cases halved!
Many young people never tip at all. They don’t understand the system. Conversely they aren’t worried at all by the imposition of a service charge, which, incidentally has to be clearly stated on the menu and clearly defined on the final bill.
It is similar to America, although that is usually 20%, but for different reasons. In the US staff are paid almost nothing. Tips will be around 75% of their wage.
In the UK it does seem to be as a result of the cashless society.
I agree with you though that to be asked for a gratuity in addition to a service charge is ludicrous and annoying.
I only ever tip in cash, so that staff know how much I valued their efforts. It also helps me get great service next time I go to the same restaurant.
If I don’t think I got good food or drinks or good service I will remove the service charge. In that case I will not be going back.

 

[Mesquite]

I try to ask the staff if they get the money and if they say they don't, I check to see if they get to keep/divvy out tips, and then I ask for the service charge to be removed and then leave a cash tip.

This is what I do as well.

 

[bobnewboy]

It irks me (and the missus). I’m happy to tip for good or exceptional service, or maybe even just a smile and a welcoming approach from from the server.

 

[Glow_worm]

It seems a really odd concept giving paid employees extra money for doing their job, and a daft hangover from the past. As a student I never felt obliged to hand my lecturer some cash for making things particularly interesting, nor would I give the meter reader a fiver for greeting me cheerfully and jotting down the numbers in an efficient manner.

Service charges? QR codes? Bleurgh. Glad I can cook my own food with much higher quality ingredients for a fraction of the price.

 

[slowworm]

As someone who has worked in hospitality for 20 years or so I feel I can help.

Good explanation, thank you. It's been a long time since I ate out and even when paying by card I'd tip in cash.

 

[Pattree]

Apparently my wife, who would never tip in a restaurant does tip her hair stylist and her very occasional nail artist.
(Don’t ask me!)

 

[TeeDee]

Apparently my wife, who would never tip in a restaurant does tip her hair stylist and her very occasional nail artist.
(Don’t ask me!)

Thats a reasonable point- I get my hair cut ( typically kurdish/turkish barbers ) by which ever barber is open in the vicinity ie a Walk In - but its more about rounding up whatever amount is being asked for and feel anyone willing to be in very close proximity probably deserves financial enhancement and danger money.

They also have a policy of not taking card payments which poses a different case - wait for change or let it go. I'm sure its not like they anyone factors that into their pricing.

The difference is , it IS a Tip. Not a additional charge thrown in as standard at a predetermined rate by someone else.
As you say I do think it can guilt trip people into paying it at the point of payment where they only then spot it and maybe feel uncomfortable in terms of disagreeing with the owner.

 

[Paul_B]

We used to pay by card and if service was good we paid a tip by cash. Usually leave it in the tray on the table and leave without seeing any reaction. We always tip at 10% of the cost of the bill if it is warranted. If not it is either half that or nothing.

When one place we ate at a lot and got to be treated as the regulars we then got asked if we wanted to pay a service charge. It had been added to the bill and we often said not so they took it off and we paid by card without it then gave them a cash tip if service warranted it. We would then be given the amended receipt without the service charge.

I think that is a good way to go, make it personal with a question and a no obligation / no quibble removal if the customer is not happy with it. Chances are people will go with it, but there is not obligation and they put not guilt. We still went back and they were as friendly as ever. In fact they told us that they did not like it when the restaurant HQ put it on as an sutomatic system. They felt uncomfortable asking if the customer wanted it off as they thought it put the customer under pressure. They were good people working for a chain.

 

[TeeDee]

As someone who has worked in hospitality for 20 years or so I feel I can help.
In the good old days when customers mostly paid cash there would be a tray on the bar with a notice saying “Tips”.
Most customers used to tip something unless they had a complaint about service or quality. If they’d loved the drinks the tips could be 25% of the bill. It made a huge difference to my wages & incentivised me to make great drinks & provide amazing service.
Fast forward to almost no cash sales & everyone paying by contactless phone. Regardless of quality the tips are very rare nowadays, and staff are leaving the industry because their wages have in some cases halved!
Many young people never tip at all. They don’t understand the system. Conversely they aren’t worried at all by the imposition of a service charge, which, incidentally has to be clearly stated on the menu and clearly defined on the final bill.
It is similar to America, although that is usually 20%, but for different reasons. In the US staff are paid almost nothing. Tips will be around 75% of their wage.
In the UK it does seem to be as a result of the cashless society.
I agree with you though that to be asked for a gratuity in addition to a service charge is ludicrous and annoying.
I only ever tip in cash, so that staff know how much I valued their efforts. It also helps me get great service next time I go to the same restaurant.
If I don’t think I got good food or drinks or good service I will remove the service charge. In that case I will not be going back.

Thanks for the detailed response and perspective PN.

I guess the sticking point is , I think , most people ( customers / public ) feel a tip is an optional inclusion & increase on a bill by a patron and the amount of that optional increase is a subjective amount set by that customer - not the establishment they have already chosen to come and provide their custom too.

Also why not just have those shown menu prices increased to take into account ALL the various staffs wages as opposed to have the service staff wages as somewhat specifically different to the chef's/cooking staff/plate washers and owners.


I can see that with us moving away from a cash=king to a cashless society imposes some changes but not that they can't be included within the advertised pricing.

My response to having a service charge ambush isn't to return.
I can't think of any other industry or sector that includes such thing.

Yes I could stand there and decline the added payment but that situation is something I think most people would prefer to avoid.

I shall start to make a point in advance of checking if service charges are automatically included before venturing out.

Just feedback from one of the customer base

 

[Chris]

I tip in cash when the service is good. Often I’ll tip more than the ‘optional’ service charge added to the bill. But I won’t leave a cash tip when this charge is added by default, and I will ask for it to be removed if the service is crap.

Would much rather that prices rose and staff got paid more, and were held to a reasonable standard of service. It shouldn’t be the customer’s job to do that. The cynical part of me suspects that any price rise would not actually go to the waiting staff, however.

Thats a reasonable point- I get my hair cut

Show off.

 

[Paul_B]

I disagree that they should be added to every item price because tipping and service charge is purely meant to be a reward for good service in this country. Not so in America but then we are not America so should not follow where they lead, certainly not in this.

Adding such charges as a lump sum extra is no different than adding it to each and every price. Perhaps the solution is to ask it to be added to the bill. One sushi place near us that we used to go to had a tablet based paying in system. The server puts in the price for everything you have bought. They then hand it to you to pay. With that touch screen payment system there is a simple question about whether you wish to add a service charge. They offer an automatic 15 or 20% figure vbut there are quick select options of fixed amounts and one custom option that goes to a sceren where you put the exact amout you want to put. We often go and type in the exact 10% tip if we want to based on the service. It is usually good so we do more than not. Then we hand it back after tapping our card on the card reader ont he counter. They then print out the receipt for the total amount paid including the tip that goes to the server and chefs (communal as behind the scenes staff often get none of the tip but plahy a good part of the service in cooking the food well). The server does see what we give and we always get a thank you from them for the tip ro a friendly good bye if no tip (happened once when the service was terrible due to changeover of shifts).

 

[Stew]

As someone who has worked in hospitality for 20 years or so I feel I can help.
In the good old days when customers mostly paid cash there would be a tray on the bar with a notice saying “Tips”.
Most customers used to tip something unless they had a complaint about service or quality. If they’d loved the drinks the tips could be 25% of the bill. It made a huge difference to my wages & incentivised me to make great drinks & provide amazing service.
Fast forward to almost no cash sales & everyone paying by contactless phone. Regardless of quality the tips are very rare nowadays, and staff are leaving the industry because their wages have in some cases halved!
Many young people never tip at all. They don’t understand the system. Conversely they aren’t worried at all by the imposition of a service charge, which, incidentally has to be clearly stated on the menu and clearly defined on the final bill.
It is similar to America, although that is usually 20%, but for different reasons. In the US staff are paid almost nothing. Tips will be around 75% of their wage.
In the UK it does seem to be as a result of the cashless society.
I agree with you though that to be asked for a gratuity in addition to a service charge is ludicrous and annoying.
I only ever tip in cash, so that staff know how much I valued their efforts. It also helps me get great service next time I go to the same restaurant.
If I don’t think I got good food or drinks or good service I will remove the service charge. In that case I will not be going back.

The thing is, we have minimum wage now. Arent tips a hang over from when we didn’t?

 

[TeeDee]

The thing is, we have minimum wage now. Arent tips a hang over from when we didn’t?

Good point well made.

 

[Paul_B]

The thing is, we have minimum wage now. Arent tips a hang over from when we didn’t?

I thought tips have always been about reward for service. The tip the bellboy for carrying your heavy bags up or tip for good service at the restaurant. It is a reward not a top up of low wages. Or at least that is the UK tradition.