NRAI to inform members about service fee disclosure on menus, in-store displays, and tables soon

21 Jul 2022 , 11:51 AM

The National Restaurants Association of India (NRAI), the umbrella organization for Indian restaurants, will issue directives to its 5 lakh members requiring them to make it clear in all of their establishments that they charge a service fee on customer bills, menus, posters inside the establishments, and tent cards on tables.

This is in accordance with the Delhi High Court staying directives issued by the Central Consumer Protection Authority (CCPA), which forbade hotels and restaurants from adding service fees to customer invoices.

“We are advising all NRAI members to declare upfront that they levy service charge on not only the menu, as instructed by the Delhi High Court today, but also put-up posters and tent cards about the service charge on tables so customers are fully aware before they place orders,” said Riyaaz Amlani to ET, managing director of Impresario Handmade Restaurants, which runs Social and Smoke House Deli.

We’re telling members that they’re not allowed to add service fees on takeaways. Customers can escalate the situation if a restaurant doesn’t comply, according to Amlani, who called it bad practice.

Restaurants and motels are required by the CCPA to “clearly warn customers that service fee is voluntary, optional, and at consumers’ discretion and they may not restrict admission or reject services based on the collection of service charge.”