Compulsory Service Charge - what is the UK Law?

Annielou

Hi - I have booked a table for 10 people at a restaurant and see on their menu they state "We charge a 10% service charge for all parties over 6 people." If we were to spend, say £400, then the compulsory service charge would obviously come to £40, which I think is a bit steep (I would probably leave about £20). I am NOT saying that I won't leave a tip - I always do - but I would like to have the choice about exactly how much that would be and leave it in cash for the waiters, not have it added to my bill. I have googled the UK law on this and its all quite ambiguous, some say that if it is stated on the menu before you order then you legally have to pay it. However other sites say you can still ask for it to be taken off and pay whatever you think is right. I don't want to create any kind of scene at this restaurant, which I know to be good, but am interested to know what the actual law does state. Can anyone shed light on this for me before we go? Many thanks in advance to anyone who can help.

ssparks2003

You can ask for whatever you like, whether the restaurant agrees is a different matter. If you don't want to pay go elsewhere.

seashore22

ssparks2003 wrote: »

You can ask for whatever you like, whether the restaurant agrees is a different matter. If you don't want to pay go elsewhere.

I agree with this. They've told you upfront what they charge. If you don't like it don't go. Whatever you decide definitely don't go and then argue the toss at the end of the meal. I can guarantee that it will ruin the event for everyone involved.

I'm one of those diners who always tips unless the service is bad and a large group is harder to deal with than couples. I think 10% is perfectly justified in the circumstances.

Legally they can impose a service charge and legally you can decline, but sometimes it's not about what is legal.

gettingtheresometime

My attitude would be unless the service is very good, then whatever I'm charged in way of a service charge is the tip and I don't give anything else

steampowered

Yes, it is legal.

There is no specific "law" about this. There is simply contract law. In a restaurant you enter into a contract under which you are required to pay the prices on the menu. If the menu says there is a compulsory service charge, you agreed to it when you ordered your food, and you have to pay it.

The reason why restaurants do this is that large parties of people are less profitable (they tend to stay longer at the table and are more difficult to cater for). It is also because larger parties tend to leave, per person, much smaller tips.

Undervalued

Annielou wrote: »

Hi - I have booked a table for 10 people at a restaurant and see on their menu they state "We charge a 10% service charge for all parties over 6 people." If we were to spend, say £400, then the compulsory service charge would obviously come to £40, which I think is a bit steep (I would probably leave about £20). I am NOT saying that I won't leave a tip - I always do - but I would like to have the choice about exactly how much that would be and leave it in cash for the waiters, not have it added to my bill. I have googled the UK law on this and its all quite ambiguous, some say that if it is stated on the menu before you order then you legally have to pay it. However other sites say you can still ask for it to be taken off and pay whatever you think is right. I don't want to create any kind of scene at this restaurant, which I know to be good, but am interested to know what the actual law does state. Can anyone shed light on this for me before we go? Many thanks in advance to anyone who can help.

In which case it wouldn't be compulsory!

If those are the terms set out in advance then you have agreed to them by placing an order.

In general in English law, everything is allowed unless there is a law to prohibit it. In this case there isn't.

CKhalvashi

steampowered wrote: »

Yes, it is legal.

There is no specific "law" about this. There is simply contract law. In a restaurant you enter into a contract under which you are required to pay the prices on the menu. If the menu says there is a compulsory service charge, you agreed to it when you ordered your food, and you have to pay it.

The reason why restaurants do this is that large parties of people are less profitable (they tend to stay longer at the table and are more difficult to cater for). It is also because larger parties tend to leave, per person, much smaller tips.

However 4 of us (all adults) went out to a pub for a meal, ok we're likely to spend a few hours there rather than straight in/out, however we're also very likely to spend £150+ on food and drink.

Ok, its £15, however the question has to be whether they want the £150 or not.

By that logic, OP and group are likely to spend around £400. Again, how much do they want the £400? Is £40 more really worth losing that custom? Knowing the markups (a few years ago, granted) that bars/restaurants work on, the answer is probably not.

Annielou

Undervalued - thanks for the red highlighting, however I do know what compulsory means, hence the original question which was 'by law' can any service charge actually really be compulsory or is has it always got to be (legally) 'discretionary, whatever the restaurant might want to pretend on their menus? And for the other answers stating the blindingly obvious and telling me not to go there: I will be going there and I will be paying a tip (if that is 10%, or maybe even more perhaps), but that's not the question, the question was around the nature of the law on this subject.

steampowered

CKhalvashi wrote: »

However 4 of us (all adults) went out to a pub for a meal, ok we're likely to spend a few hours there rather than straight in/out, however we're also very likely to spend £150+ on food and drink.

Ok, its £15, however the question has to be whether they want the £150 or not.

Every restaurant has to price somewhere. Yes they could reduce their prices by £15 to gain customers, but that would also reduce their margins.

There aren't many restaurants that apply a mandatory service charge for tables of 4. These are ordinary sized tables and easy to cater for. Plus they still tend to tip quite well.

The issue for restaurants is that larger tables are more difficult to cater for (more work getting all the food to come out at once), less profitable (larger tables stay in the restaurant longer, taking up tables that could be used by other customers) and don't tip as well (people tip much less on average when they are in a large group) ... hence the mandatory service charge.

Annielou

Thanks Steampower, having read that and understood the other side of the coin a little more I'm much happier now to just pay the 10% and not be annoyed by the compulsory tag. Choice would obviously be nice but I guess then more people might choose to tip a little less than 10% when the bigger tables/bills are involved.

bris

You would leave £20 on a bill of £400? 2 quid each, I think cancelling is doing them the favour.