Service Charge On Your Restaurant Bills Illegal - Here’s what Noida thinks!

Prachi Khandelwal

Imagine you just finished having a finger-licking dinner, and the moment you see the bill, the smile turns into a frown. The reason? Overpriced service charges. It instantly ruins the mood, doesn’t it? Not anymore. The Central Consumer Protection Authority (CCPA) is taking action against restaurants located across the country for violation of consumer rights and levying service charges on food bills.

Happening Bazaar spoke to people in Noida to know their reaction and experience. Here’s what they said. 

A Much-Needed Rule

Vishal Parashar, a senior bank executive working in Sector 18, said, “The rule was much needed. It happened to me twice — highly priced service charges. I had to get it revised, which took effort from both sides. It doesn’t exactly feel comfortable asking them to remove it, yet I had to do it anyway. This rule makes eating at restaurants better and more pocket-friendly.”

Encouraging Dining Out

Gautam Anand, a business head at a financial firm, shared, “It’s a consumer-oriented and good decision. We can eat outside more now and experience fine-dining restaurants. Especially beneficial for foodies who dine out regularly.”

Ayush, a meteorologist working for the Indian Meteorological Department, explained, “Once it is written on paper, it becomes mandatory for us. Sometimes, when we are with family, it feels awkward to discuss these small things and disturb the evening. Many people dining out don’t even know they can ask for it to be removed. So I am glad the government took this step and declared service charges illegal in India.”

Does It Even Benefit Staff?

Deepshika Yadav, a bank executive at a private bank in Sector 18, said, “If the service charge really benefited the staff, we would still be ready to give it. However, we all know it doesn’t directly benefit the waiters or staff members, so it is good that the government took this decision.”

When asked whether service quality may drop after the removal of service charges, she added, “It definitely won’t. Restaurants want to run their business. If service declines, people will complain and even talk about it on social media. As consumers, we don’t really have to worry because restaurant owners have to compete to stay relevant in the market.”

Tipping vs Service Charge

Sourabh Sharma, an associate bank executive at a private bank, pointed out, “Tipping is always better than paying service charges. At least it directly benefits the staff or waiters. This is a big relief for someone like me who regularly eats outside and earlier paid around ₹200 just for service charges.”

Sharing a similar view, Sahil, a government bank employee, said, “Tipping is a shared bond between waiters and customers. It’s our choice whether we want to tip and how much — depending on the service we receive.”

Overall, most people in Noida agree that the tipping system feels fairer and more transparent compared to mandatory service charges, making dining out a more comfortable experience for customers.