Service charge

Hotel and restaurant workers demand pay rise after service charge ban

Industry experts say that while restaurants will raise food prices, there is no certainty that it will come down to staff as it will be part of the owner’s income.

Topics
Service charge | Hospitality industry | Restaurants


Nitin Kumar |
New Delhi



“This is my second battle in two years,” says Ram Pandey, server and father of three daughters. The first was the pandemic, which hit Indian restaurants hard. The industry shrank by 53% in FY21, according to a report by the National Restaurant Association of India (NRAI). And now it’s the Central Consumer Protection Authority’s (CCPA) decision to ban hotels and restaurants from levying service charges from July 4th that has dealt yet another blow to people like he said to him.


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First published: Tuesday, July 12, 2022. 00:04 IST