ALL ACCOR

ALL ACCOR
Book, stay, enjoy. That's ALL.com
Showing posts with label Tipping. Show all posts
Showing posts with label Tipping. Show all posts

Monday, 30 January 2023

Surcharges and service charges a blight on the restaurant experience

There is a new threat to the customer enjoyment of a café or restaurant experience: the insidious creep of "surcharges" and "service charges".

Because hospitality workers are guaranteed a decent wage under Australian workplace laws, tipping has always been considered voluntary. I generally tip between 12-15% for good service, usually making sure the money goes straight into the hand of the person who has looked after us.

Most Australians are also used to the idea of paying a surcharge on a Sunday, or a public holiday, when businesses have to pay their staff an additional penalty rate. Or even for group bookings, who can be difficult and are notoriously poor tippers.

But how about a compulsory extra charge just because it is Monday? Or Wednesday.

A recent arrival on the Brisbane dining scene, Komeyui - an offshoot of a Melbourne business - caused a lot of debate on Facebook this week with its compulsory 5% "service" charge on midweek days.

The business does not make it clear whether or not the charge goes to staff, but if customers are paying a "service" charge then they can hardly be expected to also tip. And 5% is less than a lot of diners would leave voluntarily.

At the bottom of the menu is note saying: "Service charge of 5% on weekdays and Saturdays, 10% on Sundays and 15% on public holidays applies."

The owner of a successful local café says the surcharges like this - and for a glass of tap water - are a bad look. 

"People who are dining out hate to be confronted with extra charges," she says. "If the menu says $33, then that is what people expect to pay. Adding a surcharge likes this makes it look like a business has simply got its sums wrong when doing its pricing.

"It makes a lot more sense to build costs into your prices across the board and charge what people expect they are going to pay."

Others disagree. I spoke out strongly against added charges - I also hate being charged extra for a slice of bread and butter - and was told: "Your extreme position here is out of step and unhelpful to the industry."

Well, so be it. 

It is called the "hospitality" industry, not the "screw another 5% out of the unsuspecting" industry.

Another hospitality industry figure posted: "Product and service cost what they cost, but isn't that what ‘the price’ is. An additional service charge on special days you can understand, but if it’s just adding 5% everyday then shouldn’t that be the price?"

And the owner of a well-known wine bar contributed: "I don't think tipping has become a part of our culture yet. We expect employers to pay the right amount and build it into the price of their product/service."

Added charges also cause angst. Is this additional charge calculated before, or after, GST. And before, or after, any credit card surcharge. Another creeping issue.

One insider put it best, I think: "Does it go to the staff, who presumably get paid award wages, or is it a bit of icing on the cake for the business?"

A good question - and one that any business imposing such a charge should make very clear. 

Saturday, 14 May 2022

Reaching tipping point

We all know that the hospitality and restaurant industries have been doing it tough over the past couple of years. 

Venues have closed; workers been laid off. 

But there is no excuse for a new scam I have increasingly been seeing on my travels: the tip con. 

It works this way. You pay your bill and a 10% or 15% service charge is included. 

You’d assume that would go to those who have provided “service” - but that is not always the case. 

Instead, many bills and credit card chits now are including a “tip” slot, where they hope the unwary will add another 10 or 15%, not noticing they have already paid a service charge. 

Generous, or stupid, souls could easily end up paying 30% for service that is often not as good as it was pre-Covid. 

Pay attention, or tip in cash to a worthy recipient. 

I have also noticed a sad trend in Patong to ridiculously overcharge foreigners for goods that may well be fake anyway.

I needed a small, soft-sided carry-on luggage bag of the type that costs $12 on EBay and a similar sum at KMart or Big W. 

First up I was quoted 1500 baht (nearly $60 aus). That came down 1000, then 800. 

After twice walking away, I finally negotiated one for 300 baht (around $12). 

I know full well that bartering is an art in Thailand - but if returning tourists are ripped off they will choose another destination next time.  

Caveat emptor.