Service charges, a growing trend in the restaurant industry, are often misunderstood. This article explains what service charges are, why they’re becoming more common, and whether they replace tipping. We’ll also explore the legal considerations and how restaurants can best utilize them.
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A Shoreditch eatery has come under fire after it was revealed that it charges customers a £2.99 ‘checking-out fee’ on top of a 13.5% service charge, sparking outrage among Redditors and raising concerns about excessive charges in the hospitality industry. The Sunday app, created by the restaurant’s owners, has been criticized for facilitating this additional fee, which some customers describe as ‘tacky’ and ‘excessive.’