"Service Charge"

[peterbj7]

Can anyone think of ANY circumstances in which it's appropriate to add a compulsory "service charge"?  Because I can't.  My philosophy on tipping is that if the service was good I tip modestly, if it was way beyond what I might have expected I tip generously, but if it's pretty well the minimum that could have been expected I don't tip at all, and if it's less than I reasonably expected I either complain or I make a note never to return.  I find the idea that there's a set %age to add as a norm frankly rather odious.  And I find the idea that up front I will be required to pay a pre-defined tip totally unacceptable.

It's worth mentioning that in British law, and I suspect the law of all EU countries though I'm not sure of that, a "service charge" cannot be enforced and you don't have to pay it.  That's regardless of how well it was communicated to you beforehand.  If it's bundled into the advertised price then you pay, if it's added on in any way at all you don't.  Similar applies to taxes, though with taxes it's ILLEGAL to add them afterwards - doing it constitutes a criminal offence.  After all, sales tax is a tax on the business, not on the customer, and is just one of the many costs the business has to bear.  I don't expect to see an add-on for rent of the table, or for having staff around to serve me, so why charge separately for tax?  To me it's totally wrong - in Britain it's specifically illegal - and I am always amazed when in the US that Americans meekly accept that the price on the item "of course" isn't the price you pay.  As I said, the tax is on the SHOP not the customer.

My policy is to walk out of an establishment that tries to add either of these extra charges.  It's dishonest and is intended to be - they want to make their prices appear lower than they actually are, so separate out individual elements and add them back in afterwards.  How can this ever be anything other than cynical deception?  In any case, has anyone heard of a SINGLE establishment that pays the proceeds of their 'service charge" to their staff?  I know (as a practicing accountant) that doing that is extremely rare.  In almost every case it's just a way for the business owner to make more money.

I would also like to see the currency of the realm enforced, so that for ALL transactions taking place in Belize the ONLY acceptable currency is the Belizean dollar.  Clearly US dollars can be accepted for payment at the normal rate, but ALL prices should be quoted in the legal currency.  That includes bars, restaurants, hotels, dive shops, and even real estate.

On the subject of real estate, I wonder how many of our local "reputable" realtors pay all their due taxes?  I know of many instances where transactions take place outside Belize with the specific intention of evading Belize taxes.  I also know of a case of deliberate fraud where sales tax was added to the charge imposed on a seller, but that business was not registered for sales tax and the money was never remitted to the tax collector.  This was not something that just happened through an unfortunate combination of circumstances, but was a pre-planned and very deliberate act.  Viewed from different angles, it was fraud and theft from the customer, and a much more serious offence of pretending to be a Government tax collector but in fact pocketing the money instead.  In Britain that last aspect would without any question warrant a prison term even for a first offence.  The defrauded customer would have an unquestionable right to recompense and considerable compensation directly from the realtor.  In Belize nothing happens.

This country really needs sorting out.  Then there would be funds to alleviate the intense poverty we see around us.

[bethieb]

I have a different take on tipping, and I apply it anywhere in the world.  I've never worked in the hospitality/restaurant service industry, but I have many friends who have and do.  I tip 15% if service was acceptable, meaning everything was as it should be both product and service; I tip more if I receive exceptionally good service/food/wine service, etc.   The rare occasions I have left no tip at all I can count on one hand - and I always tell the server and manager why there is no gratuity so that they can remedy the situation, or not.  I do make exceptions for younger, less experienced waiters and give an "A" for effort even if their effort comes short of acceptable.  It is my understanding that the pay rate for waiters is very low due to the fact that they receive gratuities, and so it would follow they would strive to earn more by providing good, acceptable service or better to increase the take home pay. 

[peterbj7]

I should have said - I'm much more likely to tip when there isn't a "service charge" added, even though I know that in most cases the staff won't see any part of that "service charge".  Quite a lot also depends on the overall pricing of the establishment - if it's cheap I'll tip more (cash, not %age) than if it's expensive.

[deadserious]

I generally tip 20% if service was what should be expected.  30-50% if it was outstanding.  10% or less if service was bad but not all the fault of the waiter.  Nothing with a note if terrible.

If a tip is enforced on the bill, typically 15%, I will usually complain loudly, ensure the waiter is understanding that the charge is less than I would have tipped otherwise and then never return. 

But what pisses me off more than the compulsory 15% is when the waiter informs me several times that a tip is not included in the bill.  That happened to me every time I went to Carumbas from before we would order through during the meal and then also when the check was delivered. Each time it was a different waiter. 

We just stopped going.  Haven't been back in about 5 years.  And I now make sure to tell everyone I know to avoid the place.  It also doesn't help that every time I went they were out whatever I wanted to order.

[2Aggies]

I know this thread has been idle, but I have been working my arse off. Whether you see it or not you pay the sales tax and it is a matter of conditioning the consumer on how it is presented. Here we know if sales tax will be added. You say British law makes it illegal to charge sales tax to the consumer because it is a tax on the shop, but I think perhaps you meant it is illegal to price goods and services without including it. Your comment that Americans meekly accept our manner of charging the tax is offensive (we're just smart enough to know it is going to be added). Your implied perception that Brit's aren't paying the tax shows ignorance on the part of the consumer. Your tax is added when the merchant sets the price. You're an accountant and you know that. So call it a tax on the shop if you want, but the consumer is the one paying it. Would I prefer the tax be placed on the price tag, maybe, only as a convenience though. In addition, the past several years taxpayers with no state income tax have been allowed to deduct sales taxes on our returns, so we need that information separated.
Service charges (tipping) have gotten out of hand in some industries, but I consider them effective in the food industry. Wait staff are paid less than minimum wage (for several reasons) mostly it is an incentive to perform well for additional compensation. However, I am offended if I walk up to a bar for a beverage and am expected to tip. If the bartender wants me to walk around and get my own I'd be happy to in many cases. When our pool table was delivered and assembled (which I paid extra for) the guys opened their toolbox which had a large sign stating tips were appreciated. They did not have to move any furniture and they were able to park within 25 feet of a door directly into the game room. They only had one option and that was to set the table up correctly. If they had to carry it upstairs or move furniture I would have given them a little something extra. No tip.