What is the point of a separate service charge in restaurants?

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Accepted answer

From a restaurant's perspective it is useful for a couple of reasons:

  • as JonathanReez pointed out it allows menu prices to be lower if they are stated before tax and service charge.
  • Stating a fixed service charge allows the restaurant to know what they will collect. This is especially useful if they typically get less than that (perhaps because they deliver poor service)
  • Many customers will not contest the service charge (even in those countries where they legally can) as they don't read the small print, or want to challenge the "default" payment.

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