PrintRestaurants Adding Sneaky Service Charges
This restaurant didn't add a service charge, but you might want to watch out on your next bill.
Nobody likes to be charged extra, especially when it's on the part of the bill you have the most control of—the tip. I've been in the service industry for more than ten years, and while I understand that sometimes you get the nontipping foreigner, the cheapskate, or the grandma who never grasped that the tipping percentage moved from 5 percent to 18, those aren't reasons to add a service charge to a table of two.
There have been a few reports of businesses adding these charges to the tab. Eater called out Le Gamin for this practice and the New York Post shared a whole list of offenders. Going one step further, NewYorkology posted the New York City law that details when and how restaurants can add service charges.
I have never noticed extra dollars on my restaurant receipts but have seen the signs and will start watching for them. Have you noticed shady service charges at restaurants?
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30 Comments:
I was in the Bahamas, where a service charge is added to almost every bill, from take out to high-end sit down. I went to a restaurant in Nassau that mentioned it in extra-tiny print at the bottom back of the menu. The group I was with noticed it and didn't leave any additional tip, but I later heard a different group of co-workers had lousy service at the same restaurant, had a long drawn out debate as to whether to tip or not, and then left a very polite 15%, not noticing that an additional 15% had already been added. They were pretty put out the next day when we were comparing dining experiences the next day.
hungrysailor at 7:55PM on 02/12/09
I haven't in New York, but I grew up in a city (Hong Kong) where 10% is automatically added to the bill. At dimsum places, there are extra charges for things like tea and sauces--but you're not allowed to opt out of the tea or sauces!
In contrast, I recently ate at an izakaya here in NYC called Tsukushi, where you eat what you're given and are charged a set price to which the gratuity has already been added, taking tip calculation out of the equation. I guess this is the French way--"service compris".
Michele Humes at 8:01PM on 02/12/09
Jean-Georges added a service charge to my New Year's Eve dinner-for-two bill, but that may have been a special occasion issue.
BJBigler at 8:15PM on 02/12/09
I don't live in New York, but outside of Seattle, Wa. This happened to us last week on my birthday. We went to a local resturant that is nice, but okay to bring kiddos( please note, we don't have screaming monsters!). We had 4 adults, and 4 kids, 3 of which are in high chairs and eat rice cereal. Our service was HORRID, and our waitress was rude when she did remember our table. I was really mad to find that she had added an 18% gratuity to our bill, because we were a party of "8". Never mind that the little ones didn't get anything from her! Nothing, not even water! She didn't exactly sneak it on, but I think she was out of line. Perhaps she knew that would have been her only way to get a tip....
I tip well for good service, and I should have complained that night, but I was trying not to ruin my birthday dinner at my favorite resturant..
mhurst826 at 8:17PM on 02/12/09
I'm just fine with a service charge instead of a tip. It needs to be stated clearly on the menu that this is the restaurant policy. I wonder, though, is there supposed to be a service charge on the bill in the picture accompanying this article? I can't seem to find it (which would make it very sneaky indeed).
Likeswords at 8:45PM on 02/12/09
She deserves at least 18% for serving a party of 4 adults with 4 children with 3 in highchairs (with their own food!). Someone has to clean up those highchairs after all.
Additionally, I hope this is a restaurant that caters to children, otherwise, there were diners there, I can guarantee, that thought your behaviour was HORRID.
Dish at 8:47PM on 02/12/09
One coworker used to work in a Chinese restaurant in San Francisco area. She said they scribbled customer's order on the bill, never write the individual price next to each dish, then when they added up the bill, they always add some more $$$ for the total. Usually they would add $3~$5. But if the dining group has been drinking, then it was the opportunity for them to add big $$$, sometimes even up to $50. If for some reason the customer found out, they would just apologize and pretended it was a simple miscalculation. But they cheat, everyday, with EVERY customer.
Coworker told me from her own working experience to warn me. Always check your bill in restaurants!
eileen216 at 9:37PM on 02/12/09
@ dish. I clearly stated that it was an okay place for children. There was no mess to clean up from the high chairs,little infants don't make much mess, esp considering two of them slept for most of the evening. IF they did make a mess, I would have been on my hands and knees cleaning it. Don't assume I think its okay for a waitress to clean up after my child. We are not your typical rude guests that let the kiddos run around the place and bother others, we had our table away from the other patrons, and it was a quite evening. She was the rude one, not us. I don't its okay to wait over 5 minutes to have drinks refilled, and to be all but ignored expect for serving the actuall meall. It was a wednesday evening, around 6, and busy. I would have cut her some slack had it been a bustling friday night. Bottom line was that she was rude and didn't earn a tip from us at all.
mhurst826 at 9:56PM on 02/12/09
@eileen216. Reminds me of a take-away service in Pittsburgh we used to use in the dorms way back when. Since we were always big on knowing what everyone would be paying (as well as tip) before we called up, we always knew the total within a dollar or two.
However, this place would almost always "make an honest mistake" on the price whenever we called in an order. Now, I'm all for mistakes myself since nobody is perfect, but it was pretty odd that on three consecutive occasions that the price was overinflated by 40%. When we would inquire about the price and what it should be, it was always the same "Oh my! Really sorry about that, just wasn't paying attention!"
So don't just worry about eating out, also be wary when picking up/getting delivery as well.
First Chair at 10:06PM on 02/12/09
I've been to restaurants with service charges and my dining companions sometimes don't catch it but I do and almost tip on top of the service charge! They should make it very clear that they add the tip for you if they're going to do this to prevent double tipping (or is this their plan?)
ag3208 at 10:19PM on 02/12/09
this is picky...but could you do me the honor of proof reading your post prior to posting? your leading typo kills my comprehension. are you a journalist?
englishteacher at 10:24PM on 02/12/09
* wednesday night around six and NOT busy. There were perhaps 4 or 5 other tables with dinner guests.
mhurst826 at 10:27PM on 02/12/09
This may be irrelevant considering this is SE:NY, but in the Philippines, restaurants have free reign to tack on whatever they want to the bill. In addition to the mandatory 12% value-added tax, they usually add on 10% service charge. On top of THAT, some even have an additional 12% local tax. There is no standard/fixed charge from all places.
I still leave a tip though, because we're not even sure that the service charge goes to the poor waiters.
wickedcoco at 11:04PM on 02/12/09
@Likeswords: There isn't a service charge; I wrote that in the caption under the photo. (I didn't have a photo of a bill with a service charge.)
roboppy at 11:53PM on 02/12/09
1849 on Bleeker off McDougal always slips 20% onto your bill. They blame on their close proximity to NYU but I still think that is no excuse for the unannounced extra cost onto you total!
devine719 at 11:55PM on 02/12/09
Do not assume that those extra dollars go to your server. I worked for a large chain hotel that added a $2 service charge to all room service orders. Originally, this was given to the person that delivered the meal, but after a "change in hotel policy" the hotel started keeping the money.
riamac at 12:38AM on 02/13/09
yeah once at kincaid's in hawaii we got the bill with a service charge added to it and then a blank area for a tip to be written in. I told them to bring back the bill without the service charge because we wanted to add in a tip on our own.
katnsatoshi at 6:53AM on 02/13/09
Resteraunts that add a "service charge" are stiffing the server as far as I"m concerned, because unless it is noted where I can see it plainly, I wont tip anymore. It's about time we started paying servers a living wage rather than a pittiance. I am a generous tipper, usually up to 30-40% for outstanding service. but when they add that charge I see red. It also seems to me the server is at the mercy of the resteraunt to recieve that tip.
huneybumper at 8:00AM on 02/13/09
I ate at Junior's in Brooklyn once and they had added a service charge. I had no idea what it was and got incredibly confused. My friends and I asked our server about it and his explanation made no sense and just confused us more. We didn't know whether or not we were supposed to tip on top of it, so we did anyway. I felt really poor afterwards.
LHSK12 at 9:22AM on 02/13/09
Florencia 13 over in the Village did this once to me and my friends. And they hadn't even provided good service. And we were only three. Interesting to see the rules.
citygrits at 9:51AM on 02/13/09
Empanada Mama did this to my coworkers and me--added a 15% service charge (if not more), and we were only a group of four.
floorrinse at 10:45AM on 02/13/09
I live in NYC and I've experienced this once, at Waterstone Grill (79 Water Street) this past summer.
There were only two of us, but the wait staff added a 22% tip to the bill. There was also a space on the bill to add an additional tip of my own (as if anyone would, after paying a mandatory 22%!).
I didn't see it at the time, but did see it later that night. So I contacted the Better Business Bureau and stopped payment on the charge with the card I'd used, American Express.
The manager was apologetic, refunded my money and gave me a gift certificate, so I give them some credit for that. But they should have never done it in the first place.
After that, I just had no interest in going back there again.
mdashkin at 11:28AM on 02/13/09
roboppy, thanks; if I'd paid attention I'd have seen that myself.
All this just reminds me of how lazy I am. I almost never scrutinize the bill, and I hate tipping because it makes me do math and give a performance review just when I want to relax after a nice meal.
Likeswords at 12:10PM on 02/13/09
yep 20% charged and clearly stated on menu of big daddy's diner even though our party was 4 people... 2 of which didn't even eat... the place was completely empty... maybe thats why!!!
chnguyen at 12:13PM on 02/13/09
@mhurst826 what restaurant was it?
tienh5 at 2:46PM on 02/13/09
I haven't noticed this at any of the places in NYC where I normally eat, but I restrict my meals out when I go back, these days.
Is it legal to add a service charge to a bill, if it isn't listed somewhere on the menu? To me that sounds like a hidden cost, and the simplest way to address that would be to report anyone doing this. If it looks shady, it probably is.
I'm in Europe most, and some countries routinely tack on a service charge, but the amount is stated clearly on the menu, so you don't get any last-minute surprises. Frankly, I always prefer to eat out in countries where the waiters ARE paid a living wage, and one doesn't tip, regardless of whether or not there is a service charge involved.
mongoose at 3:21PM on 02/14/09
When I read, on eater.com, about the Newyorkology item, I was surprised that the law is that service charges can only be added to tables of 8 or more, and then only 15%!
So, I tried to do some confirmation on my own, and so far have only found the rules as stated on Newyorkology, through a quote from the Commissioner of the Department of Consumer Affairs (DCA). I found no evidence of these rules on the DCA website, listed in the official rules/laws of NYC, or on any other website, except as a quote from the original article on Newyorkology!
A subsequent phone call to 311 (the NYC government info line) had me transferred to the DCA, where, finally, the person to whom I spoke referred me to their legal department, who referred me to another person, Ricky Wong, who, according to the message on his voicemail, is out of the office until Monday 2/16!
So, while I agree it is less than ethical for restaurants to add previously undisclosed service charges to checks, I will await further confirmation from the DCA--and information on where I can find the rules/laws written down!
Note: The only reference to restaurant charges on the DCA website/rules is one that talks about the adding of surcharges to menu prices.
restaurantveteran at 5:06PM on 02/14/09
Sneak on a service charge to my bill and I guarantee you, it's the last time I'll eat at that restaurant.
What is the "service" charge for?
Is that what tipping is about?
Unless you have a private room and a "standard" fee added instead of tipping, I think it's a rip off and would wonder if the the waitstaff see any of it.
I'd let the manager know on my way out that it'll be my last visit there and believe me, all of my friends will be warned about eating there.
Grifola frondosa at 11:05PM on 02/14/09
Yes, in fact my friend called me the other day to check my transaction history because they padded his payment a few extra dollars at a place we went to a couple weeks ago. I rarely match my receipts to what's being charged on my card and it isn't very noticeable if it's only a few dollars but that can add up over time and it's really annoying and sneaky.
kimbodian at 4:53PM on 02/15/09
@wicked coco When we travel abroad, we typically add a few Euros or whatever above the service. Although I have never been a waitperson, I always kind of think I couldn't really stiff a person who is doing a job I would be reluctant to do.
I think the best way to address poor service is a word with management. I haven't encountered illegal service charges here in NY. (I was surprised though that for parties 8 or over the limit is 15%.) What often occurs in diners, chinese restaurants etc. is an illegible bill. Unfortunately, I kind of compute as I go along, so I always ask if there's a question. (I do this at the market as well.) That's a place where it pays to be careful with respect to overcharges.
Dish at 4:49PM on 02/16/09