Every time we eat in a restaurant, people will have to pay more than the price of the food. Usually, people will have to pay around 10-15% more from the original price. This is usually service fees in a restaurant or in public services. What is service fee in restaurant and what are they really for? Well, a service fee is collected from customers to pay primary service, administrative or even the processing costs.
The service fee is different from tips in a restaurant. Tips are given to the employee, whereas the service fee is for the company. All products and services usually have service fee after the purchase, however, every service fee is different. However, people must know that the service fee in a restaurant is not an obligation from the government. To know more about what is service fee in restaurant and the rules, read more.
1. Purpose of Service Fee
All restaurants have a service fee in their restaurants, it depends on the needs of each place. The main purpose of the service fee is to use the payments from the customers to pay for the supports in the restaurant. For example, the people behind the service or other ways to increase the service level of the restaurant. However, some restaurants already put those components of cost in the price of the food. Therefore, they don’t add an additional charge to the total price.
2. Provisions of Service Fee
The government has no obligation about service in restaurants, therefore they have no rights either to forbid it. There is no standard either in how much is the service fee, so it all depends on the restaurant. However, most restaurants charge 5-10% of the total cost of the purchase. Sometimes the more luxurious the place, the higher the service fee is. The reason for this is to give the best service to their customers.
3. Difference with Tips
People must know that tips and service fee is completely different. When you come to a restaurant and you are pleased with the service, you will give tips. Know that the tips are given to the employee directly, without cutting it from the company. As for service fees, it is an additional income for the company to pay for facilities, employees and even electricity.
4. Provision for Customers
For customers of the restaurant, they must follow the rules including paying a service fee. However, if in the middle of the process you experience a disappointing service, customers have the right to complain. Customers pay quite an amount to get the best service, so if this doesn’t happen you have to speak up. The restaurant can erase the service fee as an apology.
5. Is it Necessary?
Well, it all depends on the restaurant and how they give the service. If the service gives great service and food, then it is alright to charge this. However, if it is possible, rather than adding additional cost, it is better for the restaurant to include in the price of the food automatically. Therefore, people don’t keep asking what is service fee in restaurant.
So, that is all about what is service fee in restaurant and the purpose they have. It is quite expensive, however, if they can give the best service it is worth the price. The government does need to review this charge because some restaurants just charge too much.