I have been to a few restaurants that have a mandatory gratuity - something like they add 20% to the bill as a tip. I think they do that because if the servers don't make enough in tips to reach minimum wage, the restaurant is required to make up the difference. Especially when economic times are hard and more people are on a budget, the mandatory tips help protect servers from people who would have tipped poorly but they also rob servers of tips from people who would have tipped higher if given the chance but feel extra isn't needed because it's included in the bill. Tax-wise, this also keeps servers from "hiding" some tips that are higher than usual. Do you patronize restaurants that do that? How do you feel about it?
Some places do add a service charge, but that is not a gratuity. Only in France have I encountered an automatic gratuity and that's fine because that's how it is everywhere and you don't leave any extra as it's consider rude. I've never seen a place with automatic gratuity unless it's for a party of over say 5, and then you can understand that there needs to be a minimum amount and that is stated in the small print. That was the big fuss over the Appleby's fiasco when the reverend refused to pay the agreed tip as she was in a large party. In the UK that is the only way places can add a service charge tip by law and I think in the US it's the same. They can't enforce it on all patrons, only large parties, because they require more service and attention. Even in places where the service charge is automatically added, in the UK you can ask for it to be taken off and I have done a few times and then paid what I decided it was worth.
We have restaurants here that require paying for what we call service charge but it's fortunately not as high as 20%. I don't have a problem with it as I think restaurants and businesses in general should be able to operate as they see fit, and if it ends up biting them on the behind then so be it. I personally just wouldn't eat there if I didn't feel like parting with an extra fee on top of the food expense. At most I think I'd probably have a problem with it only if all restaurants started doing it, but even then I wouldn't really complain and instead I'd just eat out somewhere cheaper.
As where I live - even though tipping is not customary or expected and is in fact more often than not considered insulting - it is generally accepted that restaurants and especially those in tourist areas will include - not a service charge – but a small gratuity for the staff in the bill - which as it is the norm here - is not something that particularly bothers me or that I object to - as to be perfectly honest - I think its a nice way of making sure that the staff get a little extra - without it appearing to be insulting.
I think it's a good idea. However, it should be modified. 20 percent should get to the server no matter what. Nonetheless, if it so happens a server gets more, then he/she should also be allowed to keep it.
I haven't been to a hotel where tip has been made mandatory to a customer's bill. It's a common thing to tip the waiters/waitresses and I have also bern to hotels were tax is charged in the bills but never a tip. I don't think I can tolerate such kind of exercise.
We patronize a restaurant because ot the food and not for anything else. The scheme of some classy restaurants here is to add a Service Charge to the bill that is usually 10% of the amount of your bill. The same with hotels, that service charge is their standard. Of course, we check the bill before paying and when there is a service charge added, we do not leave a tip anymore because the tip is for the service and we had already paid for that, right? But we take note of restaurants with that scheme of service charge and when given a choice, naturally we opt for the one with no service charge. A tip is a gratuity and it is meant for good service so the service charge in the bill is like a holdup.
You have a point there. Of recent one of my favourite restaurant has started this service bill trend in the bill. It was so annoying that my visits naturally decresed at their restaurant. They have a very nice ambience and tasty food but now I only visit tgem occasionally. I ended up frequenting another good place with no such charges.