Hindustan Times (Delhi)

Restaurant, hotel owners say order will affect staff

- HT Correspond­ent htreporter­s@hindustant­imes.com

Unlike in foreign countries, people do not value services in India. They feel that service is their birthright... We have always shared the whole service charge with our staff as it’s their incentive.

NEWDELHI:Restaurant­s and hotels in the national capital are upset with the government’s move to make service charge discretion­ary. They said the move will affect the staff and the industry.

The government on Monday issued a notificati­on saying that service charges at restaurant­s and hotels were discretion­ary or voluntary and a consumer dissatisfi­ed with the services can have it waived off. It also asked the state government­s to direct hotel and restaurant­s to display this informatio­n at an appropriat­e place.

Inderjit Singh Banga, owner Pirates of Grill and Prankster, says he passes 80% of the service charge to the staff and keeps the remaining 20% for breakage of crockery and cutlery.

“We do give them salaries, but they need motivation, and service charge is a token of appreciati­on for hard work which encourages them a lot,” he says.

Saurabh Khanijo, owner, Kylin, says the move will harm the restaurant industry. “Unlike in foreign countries, people do not value services in India. They feel that service is their birthright. They may order food for ₹1,000 and may not leave even 10% as tip. We have always shared the whole service charge with our staff as it’s their incentive.”

Many like Shiv Karan Singh, owner of Smokeys BBQ and Grill, Circus, says that the idea of asking the customer if he wants to pay the service tax is impractica­l. “It’ll be difficult for our operations if we have to ask customers if they want to pay service charge or not,” says Singh.

But Manish Mehrotra, corporate Chef, Indian Accent, Friends Colony, said that if someone doesn’t like the service, he shouldn’t be forced to pay it. “But people shouldn’t misuse this move,” he added.

Priyank Sukhija, chairman of the Lazeez Affaire group that runs Flying Saucer, Lord of the Drinks among others, says that the government’s move will make it difficult for restaurant­s to hire good staff.

“It is already very difficult to get good staff. Service charge in a restaurant lures the staff. A lot of people get attracted to hospitalit­y industry because of this,” hesaid.

 ?? ARUN SHARMA/HT ?? The government said that a dissatisfi­ed customer can get service charge waived off on his food bill as it is discretion­ary.
ARUN SHARMA/HT The government said that a dissatisfi­ed customer can get service charge waived off on his food bill as it is discretion­ary.

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