This Bengaluru restaurant claimed service charge pays for 'education of staff's kids'

The restaurant claimed that service charge is not voluntary, but treats it as such, leaving it to patrons whether to pay it

About a week after the Central Consumer Protection Authority (CCPA) ruled that hotels and restaurants could not impose a service charge on bills, some Bengaluru restaurants continue to do so saying that they inform and/or seek the customers' consent beforehand.

And while the ruling specifically says that customers must be informed that service charge is voluntary, optional and at their discretion, at least one Bengaluru restaurant has put up a board claiming otherwise - saying that the charge pays for their staff's kids' education.

Indiranagar Social had put up a board, apparently before the ruling, detailing what service charge is and claiming that it is not illegal and not voluntary.

"It is a fee charged by the restaurant over and above the price of food and drink for the additional convenience of serving the menu items to you for consumption inside the restaurant. Service charge is not charged on takeouts and home deliveries, for instance,” the notice read.

The notice also said that the service charge is "equitable" and helps pay for all the members of their staff. "To use a cliche - this is what pays for their children's education," the notice said.

When contacted by DH, the restaurant confirmed that the board was put up outside all outlets under the Social brand before the CCPA ruling, and that despite the notice saying otherwise, they are treating service charge as a voluntary contribution and that customers are free to waive it without any repercussions to them. They also clarified that tips offered by customers are not counted in the charge and go directly to whoever is paid the amount.

When asked how many customers have so far refused to pay service charge, the restaurant said that it was "about 3 per cent" of its patrons. They also said that service charge is distributed among employees under a points system, with the hierarchy of distribution going downwards from the manager and head chef to lower-placed staff.

They also confirmed that they don't actually ensure the funds are used for any singular purpose like the education of staff's kids. "Employees are free to do what they want with the money they get from the charge," the Social representative DH talked to said.

So far, the reaction to the service charge order has been mixed, the restaurant said, adding that while some customers don't really pay much attention to the service charge, others pay it consciously while some ask to have it waived.