Tip Tuesdays: Restaurant Tipping — Does Your Bill Already Levy A Service Charge?

by Vinaya HS on July 20, 2010

in Finance

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

At Pizza Hut, we were about to leave a service tip when D observed that the bill already had levied a 10% service charge. How a service establishment can fix a fixed service charge is beyond my understanding. Do service charges scale linearly with the size of the group being served? Would you leave a tip of Rs 500 when your bill is Rs 5,000?

On a general note, I’d prefer to not leave a tip when the bill already levies a service charge. And, I’d prefer to not host a party at that service establishment.

What do you think?

Tip Tuesdays is my initiative to share practical personal finance tips — every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 8 comments… read them below or add one }

Abishek July 20, 2010 at 3:58 PM

Right!! agreed.. y should we pay the tip if service charge is already included.. This is ridiculous.

Vinay July 20, 2010 at 9:24 PM

I have never a tip at Pizza Hut knowning that they include the ST component. Also anywhere in the bill if it mention service tax then no tips.

Vinaya H S July 20, 2010 at 10:55 PM

Glad that you guys agree.

Ajay July 21, 2010 at 5:49 PM

Same here.
Moreover if the service is not good and even if the ST is not levied then its a No-No for the tip.

Shilpa July 22, 2010 at 11:18 AM

I read an article somewhere long time ago.
The service charge is shared by all those who serve you, eg., the door man, the valet parking assistant, etc.
The tip you place is only for the guy/girl who took your order and brought the food to your table.

So, yeah, it is a personal choice whether to tip or not irrespective of whether the restaurant levies service charge or not.

Nikhil July 27, 2010 at 10:53 AM

I completely agree on this. These people advertise that their food is for cheap and then in the bill levy service charges. There is no need to pay tips in such cases.

Anoop August 5, 2010 at 5:54 PM

I still like the policy of Shell petrol outlets, the service guys do not accept any tip when they clean our wind shield or check air in our car tyres.

Atul March 16, 2011 at 4:44 PM

I had similar experience at ITPL,Pizza Hut. Had argument but nothing could be done.

Stopped visiting the place.

Cheers

Atul

Previous post:

Next post: