Survey: Here's what Mumbaikars have to say about service charge

Findings of an online survey reveal 93 per cent customers want service charge scrapped from bills, while another 71 per cent favour boycotting establishments levying it

Graphic/Ravi Jadhav

After assessing consumer attitudes towards the controversial service charge over two weeks in an online survey, the Mumbai Grahak Panchayat (MGP) has observed that the scales aren't tipping in favour of the levy on restaurant bills. Ninety-three per cent of the 2,290 respondents said the government should scrap it, while 71 per cent said they were even willing to boycott establishments that levied such charges. MGP is now all set to take the results of its survey as 'proof' to the department of consumer affairs next week.

Riding the waive
Nearly 95 per cent of the survey's respondents are from Mumbai, Mira Road, Thane, Navi Mumbai, Vasai, Virar and Pune. Of them, only 12 per cent (276 out of 2,290) felt that the restaurant would grant them a waiver if they were dissatisfied with the quality of service, while 37 per cent were sure that the management wouldn't write off the charge even if the customers asked to do so.

When respondents were asked if they had tried asking for such a waiver, only 3 per cent (60 respondents) reported success in getting their service charges waived while 87 per cent said they'd never tried for such a waiver, while 11 per cent tried and did not succeed. However, 64 per cent (1,475 respondents) said they would pay reluctantly when confronted with a mandatory service charge on the bill, while 36 per cent said they would demand for a waiver.

The involuntary tip
"We will approach the department of consumer affairs next week with a presentation," said advocate Shirish Deshpande, president, MGP. "The findings will be used as a sort of evidence-representation for the government and will reflect the sentiments of the consumers."

Shirish Deshpande, president, MGP and Adarsh Shetty, chairman, AHAR

Deshpande added, "The main question that arises is if service charges are voluntary in nature — as stated by the department of consumer affairs — then what gives hoteliers the right to include it in their bills?" He also pointed out that with the Parliament session just around the corner, one wherein the GST would be rolled out in all likelihood, MGP is in a "promising place" with the findings of their survey.

"We are looking at a policy guideline or change to be implemented against the mandatory levying of such service charges," he said. "We are very positive on that front, primarily for two reasons. The government has itself said that service charges are voluntary, and one can ask for a waiver on the charge if they are not happy with the quality of service. Respondents of the survey show us exactly how difficult it is to get a waiver for service charges. Therefore, we want no question of a waiver — we want this (service charge) out of the bill."

Responding to the findings of the survey, Adarsh Shetty, chairman, Indian Hotel and Restaurants Association (AHAR), said, "As of today, there is no law preventing management from levying service charges. Whether service charge is to be levied or not is entirely the call of the management — the customer or government do not come into play."
According to him, the first right of refusal lies with the consumer at all times. "It is clearly mentioned on the menu cards of restaurants that they levy a service charge. So, if a customer does not want to pay it, it's very clear to him that he can walk out. Besides, we have told our members to put up this message at the entrance of restaurants/hotels so that the customer is aware of service charge being levied. In the service industry you will never have 100 per cent service satisfaction."

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!