Waiters, chefs cry foul over the 'no service charge' rule
Chefs, waiters, and kitchen workers form the backbone of a restaurant, with a few desk employees or a manager in charge of day-to-day operations. The Central Consumer Protection Authority (CCPA) has released recommendations to prohibit unfair commercial practises and violations of consumer rights in hotels and restaurants that levy a service fee.
FollowWaiters, chefs, and other restaurant employees have expressed their displeasure with the decision to levy a service charge, with many stating that they will "seek a pay raise" from owners to compensate for the loss and others concerned that even tips given by patrons out of goodwill "may now dwindle." Chefs, waiters, and kitchen workers form the backbone of a restaurant, with a few desk employees or a manager in charge of day-to-day operations.
The Central Consumer Protection Authority (CCPA) has released recommendations to prohibit unfair commercial practises and violations of consumer rights in hotels and restaurants that levy a service fee.
Prakash Singh Koranga, 27, a cook at a Moti Mahal Deluxe restaurant in south Delhi, said the service fee, which is equally distributed among the workers, serves as "additional money" and a "motivation to do our best at work." "I've been in this business for almost five years. As a chef, I will continue to prepare the greatest meals possible for clients, but the decision has harmed our morale because we will now have to be satisfied with our wage alone," he said.
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His colleagues in the kitchen, as well as outlet manager Naveen Pandey, who has worked for the famed business for 18 years, confirmed his comments. On the condition of anonymity, a server at an Aminia location in the New Market area claimed, "Every day, I receive between Rs 1,000 and Rs 1,500 from customers (in tips). We never ask, but often people put an extra Rs 50-100 note with the bill and urge us not to give it back. I'm not sure if tipping will be forbidden in the sake of eliminating the service tax."
A variety of large restaurants and upscale cafés can be found in downtown Delhi's Connaught Place. "We don't charge service tax, so the decision won't harm us," said an employee at Green Sky Cafe in south Delhi, which offers Korean food with BTS boy band music in the backdrop.
HRAWI president and Hotel Golden Swan Managing Director Sherry Bhatia stated that no one was compelled to pay the service charge, nor were customers sent away if they refused.
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"The industry was anticipating the implementation of a comprehensive regulation that would put a stop to charging fees in excess of the cost of a product or service and that would be applicable across all industries," he continued.
The decision has elicited a mixed reaction from hoteliers, restaurant owners, and associations across India, with some claiming that the move will "have no impact" on their businesses, while others believe it will have an impact on their revenues and cause dissatisfaction among their employees, who were used to receiving their share of service charge every month until now.
Also Read | Restaurants cannot force customers to pay service charge: Govt
Many hotels, restaurant owners, and groups in India have also expressed worry about the impact of the COVID-19 epidemic on the hospitality and food industries, and have expressed concern about the impact that this action will have on the industry.
(With PTI inputs)
