The trending practice in restaurants of charging a fixed percentage at the end of each bill has been met with push back from customers. Customers may not recognize that the charge benefits customers because it keeps food costs reasonable. As the cost of food, labor, and supplies rise, it is hard for restaurants to stay profitable while keeping their menu prices reasonable. One way restaurants keep food costs reasonable is by applying a service charge to offset the increasing costs of maintaining a restaurant. Restaurant owners and hoteliers need to understand the law surrounding the issue so that when met… read more »
Posts Tagged ‘service charge’
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