Service charge in hotels: Officials confused, hoteliers unfazed, customers unaware

Of the 8,000 hotels and restaurants in Pune, almost 10-15 per cent of the establishments levy a service charge. Establishments in Koregaon Park, Kalyaninagar and Hinjewadi are more likely to levy this charge, according to Ganesh Shetty, president of the Pune Hoteliers’ Association. “Service charge is money for the staff and they know it well. The establishments which levy this charge mention it on the menu cards and it is assumed that customers will consent to it,” he said.

Shetty said the guidelines will not make much of a difference to a majority of the establishments.

Unlike hoteliers, most customers seemed to be excited about the recent missive from Paswan.

Sumit Panwar, a resident of Viman nagar, said the practice of service charges being compulsorily levied on customers was not fair. “To be honest, before the minister’s tweets, I had no idea that the charge was voluntary. From now on, I will pay it only if I am satisfied with the service,” he said.

Apoorva Raje, a college student, said many customers were unaware about the voluntary nature of the charge.

“I think the service charge levied by some places is worth it because of the service they provide. There are some places where the service is really bad and the waiters aren’t polite, but they still levy a high charge. That is problematic,” he said.

While Paswan has talked about guidelines, senior bureaucrats in the state government’s Food and Civil Supplies Department expressed their reservations about its implementation. Speaking on condition of anonymity, a senior officer said there was no clarity on who the implementation authority was. “It’s simply not possible to monitor each and every restaurant bill. It is up to the people to know their rights and exercise the same,” said the officer. Several hoteliers in Pune seemed to be unsure about the move, with a majority of them questioning the motive behind it.

Jitin Ahuja, proprietor of Delhi Chaat Darbar, felt that a service charge is very subjective and best left to the discretion of restaurants.

“It’s not wrong on part of the restaurants to charge it, but it should be mentioned on each and every page of the menu,” he said.