Published Online:October 2024
Product Name:The IUP Journal of Management Research
Product Type:Article
Product Code:
Author Name:Anil B Adsule and Deepanjali Mazumder
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:12
The restaurant market is one of the fastest-growing industries in India. As consumers’ disposable earnings are rising, the restaurant business is expanding due to the increase in out-of-home dining. This has raised their operating costs, and several restaurants have started imposing a service charge. Some restaurants spend the amount thus collected on staff health and happiness, while most use it for running costs. The study collected primary data from restaurant consumers to draw conclusions about the legal issues and public perceptions in this regard. It found that many customers are unaware of the option to refuse the service charge. Hence, it is suggested that the term “service charge” should be changed to something more understandable, and the menu should indicate the option to pay or not to pay the service charge.
It is a common practice among service businesses to charge for their work. Different names can be used to refer to service charges. It is an additional price that is charged by the provider of the service. This cost might be charged by establishments such as restaurants, hotels, event management companies, banks, financial institutions, travel and tourism companies, maintenance service providers, and so on. The present paper focuses on the service charges that restaurants impose on their customers. Service fees can be anywhere from 5% to 15%, depending on the restaurant.