Restaurant owners upset over service charge alterations by Department of Consumer Affairs

On Thurday, Consumer Affairs secretary Rohit Kumar Singh had said talked about the plan to come out with the legal framework. 

Published: 04th June 2022 08:45 AM  |   Last Updated: 04th June 2022 08:45 AM   |  A+A-


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By Express News Service

NEW DELHI: Restaurateurs have expressed their concern over the government’s move to come out with a legal framework to stop restaurants from levying service charge. Calling the proposal “unfortunate”, National Restaurant Association of India (NRAI) president Kabir Suri on Friday said it will “hurt the interests” of the staffers who work hard to serve customers.  

Earlier in the day, Food and Consumer Affairs Minister Piyush Goyal had said that restaurants cannot add ‘service charge’ to the food bills, though customers are free to give “tips” if they so wish. On Thurday, Consumer Affairs secretary Rohit Kumar Singh had talked about the plan to come out with the legal framework. 

The development prompted owners of restaurants, including NRAI, Federation of Hotel & Restaurant Associations of India (FHRAI) and consumer bodies, to hold a meeting. “I am a consumer myself, and service charges are meant for the staff who render services to guests.'

ALSO READ | Dept of Consumer Affairs to introduce framework for service charge by eateries 

It is divided among all the serving staff at a restaurant, which they receive over and above their salaries. We as restaurant owners can add that component in the selling price and mark it up and charge from a consumer, but the staff won’t get anything,” Suri said.     


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