New Delhi: In response to the brawl that is said to have broken out between customers and restaurant staff in a Noida mall on Sunday over a service charge of Rs 970, the Department of Consumer Affairs has written to Kabir Suri, the President of the National Restaurant Association of India (NRAI), and Suresh Poddar, the President of the Federation of Hotel and Restaurant Association of India (FHRAI).
In the notification, department secretary Rohit Kumar wrote that service charges are optional and shouldn't be "imposed forcefully on consumers, especially when consumers are dissatisfied with the service provided to them by the restaurant." (Also Read: Who Is Kailash Katkar, Know About This 9th-Fail Person, Who Is Founder Of Over Rs 200 Crore Company)
On Monday, a video of alleged physical violence between patrons and employees at the Spectrum Mall in Noida's Sector 75 went viral on social media. (Also Read: 8 Start-ups Funded By Virat Kohli)
"I implore you to appropriately counsel the members of your association not to insist on imposing a service charge on customers on an obligatory basis, particularly when a customer asks to have it removed from the bill. You would concur that any such fee is similar to tips or gratuities, which a customer may choose to give willingly based on how happy they are with the quality and level of service received from the establishment, according to the letter.
The Delhi High Court is now hearing a case involving regulations for service charges. The Central Consumer Protection Authority's rules prohibiting hotels and restaurants from including a service charge "automatically or by default" in the bill were stayed by the court last year. As it could "mislead consumers that service charge has been approved by the Court," the court stated in April of this year that the earlier order shouldn't be displayed on menu cards.
The Indian Express was informed by Suri that the organisation had received the letter. A NRAI employee who wished to remain unnamed stated, "Service charges are typically split among the entire crew. Don't we pay convenience charges in cabs, airports, and railroads? In essence, it (the service price) is the same.
