Are restaurants allowed to enforce service charges? Hospitality expert explains

Lester Kiewit interviews Mike Said, Member of Federated Hospitality Association of Southern Africa (Fedhasa).

Listen below.

Following a satisfying dining experience with excellent service, it's customary to express gratitude by leaving a tip.

Typically, this tip is anticipated to be around 10% of the total bill.

However, have you encountered a bill featuring a mandatory service charge?

Is this practice lawful, and should it be a norm we embrace, even if the service wasn't the greatest?

Fedhasa's Mike Said dissects the issue into three distinct realms: legal, ethical, and emotional.

He asserts that legally, restaurants and businesses are free to levy charges for any service they deem fit.

But ethically, transparency is paramount and establishments must openly and clearly communicate such charges to customers to ensure compliance.

Emotionally, Said underscores the delicate post-meal dynamics involving what he refers to as 'alcohol, cash, and pride', all of which can combust in unfortunate ways.

Consequently, customers often voice grievances only upon receipt of the bill as a means to avoid paying that service fee.

The restaurant and staff have a responsibility to understand these dynamics and acknowledge the impact unhappy customers spreading negative word-of-mouth has on their business.

"From a legal point of view, no laws are broken."

- Mike Said, Federated Hospitality Association of Southern Africa

Scroll up to the audio player to listen to the interview.