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10% Service Charge

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  1. #1

    Join Date
    May 2008
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    10% Service Charge

    Does anyone know if it is mandatory to pay the 'service charge' that almost all restaurants include on their bill? Can i refuse to pay it?


  2. #2

    Join Date
    Mar 2006
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    Hong Kong
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    The 10% service charge is specified in the menu. So you are expected to pay it. If you don't want to pay it, you may go to the "tea restaurants" that don't charge it.


  3. #3

    Join Date
    Jun 2006
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    ^^^ e;fb.

    You are breaking contract by not paying, not a good idea.


  4. #4

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    My take on this is that:
    a) the "service charge" is contractually no different from the base charge - it's part of the advertised price
    b) as with any service, if you believe that the standard of the goods or service provided is far below reasonable expectations then you can decline to pay some or all of the charge on the grounds that the restaurant failed to provide what it agreed to in the implicit contract.

    Obviously, if you're going to do this you're going to have to leave your details with the restaurant so that they can follow up legally if they believe they are in the right. And, I guess, you aren't going to be visiting that restaurant again!


  5. #5

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    I agree with PDLM, if it stated on the menu there is a 10% service charge, then it is no different to any other price on the menu - when you order the food, you enter into a contract to pay the price on the menu for that food, which includes the 10% service charge.

    If a restaurant is charging a 10% service fee, it is always on the menu. If any charge has been added at the register and you have not been made aware of it previously, ie no signs, not on the menu, etc, then you don't have to pay it.


  6. #6

    10%

    But where does the 10%
    I've asked many times and after braking past the embarrassment of the staff most say it just goes into the pocket of the Owner ....


  7. #7

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    Quote Originally Posted by noah1591:
    But where does the 10%
    I've asked many times and after braking past the embarrassment of the staff most say it just goes into the pocket of the Owner ....
    ... who hires staff (and generally pays them the going rate) to provide the service. what's the problem?

  8. #8

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    May 2007
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    Quote Originally Posted by MovingIn07:
    ... who hires staff (and generally pays them the going rate) to provide the service. what's the problem?
    You're being sarcastic, I hope.

    The service charge shows a dishonourable intention towards customers, as it artificially deflates the headline prices, only to sting customers at the till. It isn't a service charge at all, as it doesn't go to servers, but a simple addition to revenue. The fact that the service charge has no special function is obvious - it is 10% in every restaurant, not varying with costs.

    The service charge also results in far less tipping.

    Restaurant managers would do better to simply inflate their headline prices by 10% and skip all the weaselly small print.

    How about cover charges (tea charge or whatever)? I never see those listed anywhere.
    iflylow likes this.

  9. #9

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    Following on from Movings post

    Some restaurants pay much higher than the going rate, it depends who owns the place, which will vary greatly between what a Dai Pai Dong will pay, compared to a big name Aussie owned operation like Castelo, who own a dozen outlets in HK alone. You know them as Jaspers, Cru, Wagyu, Sopranno's, Pepperoni's Pizza, ZAKS.

    The 10% service charge helps the restaurant keep its doors open, and is entirely up to the venue under the banner of good will, what they pay staff.

    But if a foreign owned/run restaurant, pays its wait staff $12,000 - $15,000 a month, I don't see why the the staff should collect a further 10%, for doing their job. That is how the unregulated labour market, cookie crumbles. If you want to earn more, self improve to a level that you can work for a better paying establishment. He who sits on hands, goes hungry, grasshopper.

    If they were being paid $6000 a month Dai Pai Dong wages, then I can sympathise, but still believe it is a matter of self motivation, the cream always floats to the top..

    Last edited by Skyhook; 17-02-2010 at 12:03 PM. Reason: Added title.
    MovingIn07 likes this.

  10. #10

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    I do tend to agree that just putting the 10% in the prices would be better. But then again, at least in HK we have a standard 10% service charge which is added - a situation much preferable to the chaos that is the US service industry where you have to "know" the going rate and work it out in your head and figure out how to get it to the right person .... geez I hate eating in the USA!


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