With a vast array of restaurants and eateries in Bristol, dining out is one of our favourite pastimes. But it can be an expensive pastime, which could be made even more costly by the added pressure of service charges.
When you're faced with a bill that contains an additional service charge, what do you do - especially when the service hasn't quite been exceptional? Do you ask for the service charge to be taken off, or simply sit quietly and pay up?
The UK government has guidance on service charges, as well as tips and gratuities. But what is the difference between service charges and tips? How much is an acceptable amount to pay? And should staff be letting us know if it's already been added to the bill?
Read more: Flipside on Whiteladies Road closes after 15 years
What is a service charge - and what's the difference between this and a tip?
According to the Gov.uk guidance, a service charge is "an amount added to the customer's bill before it is presented to the customer. If it is made clear to the customer that the charge is a purely discretionary amount and there is no obligation to pay, the payment is a voluntary service charge.
"Where this is not the case, the payment is a mandatory service charge. If you impose a mandatory service charge and the money is paid out to your employees, National Insurance contributions are always due on the payments no matter what the arrangements are for sharing out the money.
"HMRC will accept that a payment is a voluntary service charge if it is clearly presented to the customer as an entirely optional payment. The literature seen by the customer should reflect this and be consistent with advice given to customers by employees. Any amount entered on an ‘open’ credit or debit card slip by a customer is likely to be a gratuity."
In comparison, a tip or gratuity is "an uncalled for and spontaneous payment offered by a customer. This can be in cash, as part of a cheque payment, as a specific gratuity on a credit or debit card payment or paid using a digital payment service or application".
But, essentially, a voluntary service charge and a tip is the same thing - basically a tip which has already been added to your bill. If you feel particularly well cared for during your dining experience, you could even leave an extra tip on top of the service charge - if not, it's worth checking and double checking your bill before paying to make sure you don't pay more than you need to.
Why do restaurants add a service charge? And who gets the money?
Usually, service charges are added to bills, or come up as an option on the card machine when paying, as a way of offering diners a way to tip, especially if your dining experience has included some sort of table service by wait staff. As well as being vigilant when it comes to where the service charge has been added, it's worth quietly asking your wait staff where the service charge payment, or any tips you'd like to give them for great service, will go.
It is possible that service charges and card tips don't always make it into the pockets or pay checks of restaurant staff. Businesses are legally allowed to keep tips themselves or divide them among staff however they like, so it's always worth having a quiet word with your server as to who gets the tip, or you may find your donation doesn't end up where you hoped.
How much should service charge be?
Diners can leave as big a tip as they would like, however the 'standard' tip for food service is stated at around 10% to 15%, according to the UK's tourist board, Visit Britain. If the service charge on your bill is more than this, it might be worth asking the restaurant or eatery why that is the case.
Is service charge compulsory? Can you refuse to pay service charges?
Unless you are made clearly aware that service charge is mandatory - either through your wait staff or via clear messages on literature such as the menu - then it will be an optional service charge. Some people ask to have the charge removed and will then either leave a tip in cash for their server, or leave no tip at all - it's completely up to diners.
What can I do if service was poor or if I simply don't want to pay a service charge?
According to Which, if you are told about a compulsory service charge you must pay it, unless the service was particularly poor and, if you don't receive an acceptable level of service, the restaurant could in fact be in breach of its contract. It says: "Under the Consumer Rights Act it is legally required to use reasonable care and skill when providing its service.
"If the restaurant falls below this standard you can refuse to pay some or all of a service charge, depending on how bad the service actually is. Some restaurants add a compulsory service charge to your bill, and others leave it to your discretion.
"In essence you have the right to refuse to pay the service charge in either circumstance if the service falls below a reasonable standard. If a service charge is compulsory, the restaurant must make this clear before you eat.
"For example, by stating this on menus it has in the window or by telling you verbally. If the restaurant fails to do so, then you can argue that the compulsory service charge does not form part of your contract."
What do you usually do when faced with service charges in this situation? Are you a restaurant owner with a thought or opinion on service charges and tips? Let us know in the comments below.
Read next:
Exactly what's happened to the Bristol pubs that closed in 2020 to be turned into flats
The Clifton pub with the oldest pub theatre outside of London
The traditional country pub near Bristol with real ales and five stars for food
The unassuming Bristol venue where Amy Winehouse, Muse and Dua Lipa have all played
- Bristol's 'best' Wetherspoon pub still up for sale after almost three months
