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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 }
Right!! agreed.. y should we pay the tip if service charge is already included.. This is ridiculous.
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.
Glad that you guys agree.
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.
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.
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.
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.
I had similar experience at ITPL,Pizza Hut. Had argument but nothing could be done.
Stopped visiting the place.
Cheers
Atul