Thai service charges
A while ago I visited a new restaurant on Second Road in Pattaya. Looked nice, so let's try it once and see if the food is good there too, right?
The food was good, the price reasonable and the service pleasant, not to be faulted.
Check bin, Khrab
Still, I got a little annoyed, because the bill showed as a surprise a surcharge on the prices for food and drinks before VAT and a so-called “Service charge”. So the invoice was 17% higher than I expected. Should I have known? Yes, said the serving lady, it's on the menu. And sure enough, at the bottom of every page it was written in the smallest possible letter that the menu prices would be increased by that 17%. Well, I paid and took all the change back, because I had already paid for the service and I no longer thought a tip was necessary.
I found my irritation justified, there are few restaurants in Pattaya / Jomtien that charge these surcharges. They do exist, in Pattaya especially on Beach Road and of course the large hotels, which announce the surcharge very “discretely” or rather slyly with a hefty ++. I don't think it fits, one can charge a normal price and that should include all costs and VAT.
Research
A reporter from the magazine “BK, the insider's guide to Bangkok” thought so too and she went looking for what exactly happens with that 10% service charge. Is it, as I thought, going to the staff? Well, forget it! She visited a number of good and not cheap restaurants in Bangkok and concluded that in only rare cases the service charge is paid in full to the staff.
Most restaurant managers and wait staff said that only a small portion (4% was often mentioned) goes to the staff and the rest is spent on maintenance (broken glass and pottery), flowers, and electricity costs. In a very well-known Japanese restaurant, she was told that only the serving staff (in kimono) is allocated 2% and the rest goes to maintenance costs.
In another Japanese restaurant, the 10% is retained in full by the management. The manager stated that they do not pay the staff the service charge, but they do pay a bonus if the "targets" of the sales are continuously achieved.
A well-known French restaurant guarantees to pay the staff an amount of 9000 Baht per month from the service charge. It was not said how much of that 10 or sometimes 15% service charge is involved. In a large hotel, the manager of the restaurant stated that more than half of the service charge is paid to the staff. The service charge is shared with all personnel after deduction of maintenance costs, which can vary every month.
The owner of a top Thai restaurant: 6% goes to the staff, 2% I keep for unexpected maintenance costs and the remaining 2% goes to the staff as a bonus at the end of the year.
Finally
Six percent is better than two percent, but it would make more sense to pay the total service charge to the staff. There is no other business than this part of the hospitality industry that charges a service charge. Can you already imagine that your purchases in a supermarket at the checkout will be increased with a service charge?
Legally there is nothing to do about that service charge in Thailand. The restaurant can determine the amount of the service charge itself and do what it wants with it. The reporter's final conclusion is that about half of the increase in our bill will reach the right people.
I am also a bit surprised by the 'service charge'.. I am currently busy doing preparatory work in the search for accommodations and restaurants etc that I want to use in Thailand. eg hotel lebua/intercontinental..only indicate that you have to pay a 'service charge'. so tipping is no longer necessary??
the customer is simply forced to pay for the so-called service of the staff, but what if it is just downright 'Bad'?
here in B and NL I almost never tip. living and eating out is expensive enough. my partner in that is a lot easier. (unfortunately).
is the service charge therefore not regulated and regulated by law? no so .. seems to me. how do the Thailand connoisseurs do this? and what if you don't want to pay 'that service charge'? I don't think it's an option, of course.
yes the tourist and thailand expats are being sucked dry in many ways it sounds and looks like. but well, staff of course already earn more than enough per month to also receive the service charge!!
(when I still worked in the hospitality industry, the tips went into one pot and at the end of the week it was divided among all staff from dishwasher, cleaners to cooks / service. Only the owner did not communicate!)
Now at that
“Employees of course already earn more than enough per month to also receive the service charge!!”
I see that you do not know or understand the situation in Thailand.
Staff often receive a basic salary of 100 to 200 baht for more than 12 hours of work. Then when you speak to the boss or manager. Says oh they earn well here, because they get a lot of tips here.
If you should do in the Netherlands, they will close your tent.
No, unfortunately it is the case that in countries such as Thailand, Indonesia, but also Turkey, the staff must have the tips and not the salary. That is why we can go there so cheaply.
In America you also pay a 10 and sometimes 15% service charge.
You are an entrepreneur and your customers pay by tipping your staff, isn't it nice?
We were also surprised that we had to deal with this in Thailand, you know what you have to pay approximately and then you think that the bill is not correct, but the tip turned out to be included, sad for the staff but I don't care on top of that tip once.
And I don't feel like a jerk because in Thailand you also have restaurants that charge Dutch prices for a cup of coffee
Dear John,
For someone who has worked in the hospitality industry, I find your reaction very remarkable… Like
1- Thai personnel already earn enough
2- in the Netherlands I hardly ever tip.
3- The tourist is sucked enough already.
Other than that I will not comment and keep my thoughts to myself
Regards,
Geert
I recently ate in a branch of the bookshop in siam paragon.
A 10% service charge is also stated here as standard.
And so just put it on the receipt.
I asked why. Yes it's for the service we bring it.
Well… Amazing. However, the tip pot was also pontifically at the cash register.
I find it strange that this is used.
Next time I want to try not to bring it to the table late but takeaway.
And yes, they are also very unfriendly.
I think it's a scam. The prices as stated with the menus should be the consumer prices.
If for some reason extra calculations are required, it should be at the top with the same font size. I would not go to such a restaurant again and would advise against it to my friends.
You can worry about this (because the service charge often largely or not at all reaches the service as a tip) but the solution is simple: eat elsewhere and give the staff a tip that you think is due. I'm against SC so don't eat there.
I have also experienced this in Thailand at various restaurant in various places. Always look closely and don't go there again. Usually not restaurants to write home about either.
I have also experienced in the Netherlands at Thai restaurants that tip money does not go to the staff or sometimes only a small percentage goes to the waiting staff, the rest goes into the boss's pocket.
Still in the Netherlands, by the way, underpaid with bad contracts. The Thai ladies just accept this, because they are used to Thailand where the working conditions are even worse.
In some cases, the boss sits in the restaurant and oversees payments. Even if you want to give a tip separately, this must be paid. Annoying to have to do this so secretly if you think the server deserves a tip.
Usually I walk on if there is such small print somewhere (usually don't fall into the cheerfully priced category anyway).
From long ago I can still remember that in Dutch restaurants it often said: "The prices include 15% service fee and VAT." Until the 50s, service fees were required to be charged separately, so when I was little this was relatively new.
Even now, the prices in the Netherlands still include a 15% service fee, but that no longer has any actual meaning.
In Thailand, they had never heard of a service charge or a tip until the XNUMXs.
That only changed with the arrival of the tourists. (Blame the farang again)
Calculating a service charge originally dates back to the time when there was no (proper) collective labor agreement/minimum wage. You also have to look per country whether tipping is only necessary if you have been served well (the Netherlands) or also if it was all very disappointing (United States).
Most bizarre is the situation on cruise ships, where it is very common to have a measly twenty dollars added to your account every day, solely as a tip. On the other hand, if you realize that the staff there hardly earn anything under an obscure flag, it is understandable.
.
When booking hotels online, you often see that 30% service charge and 10% VAT are added to the advertised price of, for example, 7 euros per night.
Hello Gringo,
It is more than 17% because in most cases the 10% is counted first and another 7% over that total, so a total of almost 18%. Also in Jomtien at the more expensive restaurants such as Linda, Bruno, News, Poseidon and others in the complex, or the Italian, they all participate. It is mainly those restaurants that also pay VAT and those are the more expensive ones.
So first read the menu that is usually outside or hanging and only then decide. So don't eat anywhere where it says prices ++ because that means the same thing.
You should read the service charge as service by the restaurant and not service by the staff.
Possibly just a misunderstanding.
A word does not have to mean the same everywhere, even if it is the same word.
Ruud says it right, we are misled by the name 'service tax' and confuse it with tip money for the service. Because of this confusion, the staff will actually receive less tips. After all, we assume that we have already sufficiently 'rewarded' them with that 10%. I agree with Gringo that you should be able to see at a glance what you have to pay for a dish or drink and not that you should take extra tax into account in one case and not in another. There are also bars that practice this odious practice. The same happens in Thailand with advertised prices for hotels or airline tickets, often these are basic amounts to which the necessary surcharges are added.
This event is known not only in Thailand but in many countries of the world.
Usually included, but often also stated in small print. including Prague,
Italy even charges money for the use of the cutlery, France and Italy also charge three prices at the bar, at the table in the café/restaurant and one for the terrace.
Ireland, including Dublin, you pay a surcharge if you come to eat with more than 4 people.
So it is always a good idea to look carefully at the menu at restaurants and hotels
In Ireland, New Zealand and Australia, among others, there is another phenomenon. If a restaurant does not have a license for drinks (wine, beer) itself, you can buy those drinks at a liquor shop. You take this with you to the restaurant and they sometimes deliver the glasses. You will also receive an amount for this on your account.
In Sydney I ate at an unlicensed restaurant bought 4 cans of beer in the super market for $1 and had to pay $3 per person for service. So twice as expensive as the can costs.
What do you think of Marriott and Hilton, self service buffet dinner, but still charge a service charge. Even crazier if you bought a year membership for 8000 baht and so 50% discount on the food (not the drinks) is charged for the self-service buffet service charge before deducting the 50% discount. So you pay 2x service charge for no service. There is no service at all, you scoop it up yourself.
i remember we made a transition a long time ago. Then a 10% “service fee” was gradually introduced on catering accounts. Really went to the service. I also know restaurants in some foreign countries where they indicated at the bottom of the bill that, unless they object, x percent for the service was added to the bill. I find both very appropriate. But service charge for broken glassware or any item is of course completely misplaced. Opens the way to step by step all expenses, gas, light, water, maintenance, replacement, cleaning, kitchen salary etc appear on the bill!!
In short: service charge for service seems excellent to me. But then move on to service and that's it!
All together to Japan….
1. Great Britain
A surcharge of 12,5 percent for service is normally automatically settled when you are presented with the restaurant bill. If nothing is added, a tip of 10 percent (calculated on the total amount of your bill) is the norm. Taxi drivers also expect a 10 percent tip.
2. France
A tip is usually included in the bill with our French neighbours. However, it is customary to leave some change for the waiter. However, you have to be careful because some waiters in Paris or the South of the country sometimes don't even bring your change back. You can choose whether or not to tip taxi drivers. Guides in museums like to be rewarded with a tip of three euros.
3. Germany
The German waiters will be happy if they receive a 'tip' of at least five percent of the total bill. Taxi drivers expect a 10 percent extra. Two to three euros is sufficient for porters or luggage carriers.
4. Italy
Keep tips to an absolute minimum in Italy. Waiters do not expect a tip, but of course you can reward them if you are satisfied with their service. But do realize that the Italians will charge you extra for the cutlery anyway.
5. Switzerland
A tip for the service is already part of the bill you receive from taxi drivers, in restaurants and cafes. It is therefore not necessary to give extra change.
6. Canada
In Canada, it is customary to tip around 10 to 20 percent of your restaurant bill.
7. United States
A 'tip' is generally accepted in the United States. It is desirable that you cough up an extra 15 percent on top of your bill for the service.
8. New Zealand
The Kiwis don't expect extra change. Of course they will appreciate it if you give something extra, but they won't look at you badly if you don't give anything.
9. Australia
Here too you will not be chased by the waiter if you have not tipped. However, any extras will be accepted with a smile. In the more upscale restaurants in Melbourne or Sydney, a 'tip' is common.
10. China
You don't have to tip anywhere in China. Realize that foreigners will in any case be presented with a higher bill as a result of a government measure.
11. Japan
This country is the great exception. Never tip in Japan as it is taken as an insult.
12. Hong Kong
No extras are expected here either. You only need to tip taxi drivers if they take you to the airport.
13. Singapore
Tipping is not really encouraged by the Singapore authorities. You will often see the sign 'No tipping required'.
http://www.hln.be/hln/nl/1901/reisnieuws/article/detail/1057517/2010/01/22/Handleiding-voor-het-geven-van-fooien-in-het-buitenland.dhtml
http://www.ad.nl/ad/nl/2882/Oman/article/detail/1957678/2010/01/22/Handleiding-voor-fooien-in-het-buitenland.dhtml
And I once read a study that in countries where tips are usually not given, such as Japan and Thailand, the service is rated as good, while in the United States and Russia it is the other way around…
As a loyal customer of Papa John, I was also very surprised that a service charge was suddenly charged.
Never been but suddenly a fact.
I also see it as a scam, make your prices correspondingly higher, but this does not look like anything.
I will never go there again despite the fact that the food is good.
The umpteenth “bullshit” excuse to fool the farang…I have never tipped a Thai…
You are not obliged to consume such things and you are free to look elsewhere to see if a better deal can be achieved after seeing that a service charge and VAT must be paid.
For people who want to be cheap, do not go to VAT-registered businesses anyway, because that quickly saves 7% and possibly also a service charge.
You can also join https://eatigo.com/th/bangkok/en looking for something. For example, get a 30% discount and then it is still cheaper if additional costs are added.
I wouldn't go to America if I were you because they throw you out there
And in Thailand I always like to tip
I'm one of those Farang who also wants someone else to have a good life
Right George, I also feel good when I can tip someone. And rest assured that every employee in Thailand certainly appreciates being handed some 'drinking money'.
And where 'Yan' gets it from that the Thai never tip, I don't understand. And this is not a 'Bullshit story', I see that, just like the Farangs, many Thai residents also leave some change in the Tipbox when paying at the cash register in the restaurants.
well if you think you are always being tricked then why do you accept that and just stay where you are?
Yan,
Sorry, I regularly go out for dinner with Thai people and see that in many cases they also leave the change behind. I don't know where you get this from, maybe you live in a different Thailand than us.
If it is clearly stated on the menu card, then the customer can choose whether he / she agrees with it.
It is different if it first appears when paying the bill.
In the latter case, if you are not satisfied with this, you have been warned to look for another restaurant next time.
When I read on Thailand blog some time ago that some people did not tip at all out of principle or stinginess, I can only applaud the fact that some restaurants charge a service charge.
In my early youth I worked for half a year as a suitcase carrier in a hotel in Munich, where I was immediately warned about the stingiest guests.
The stingiest guests were representatives who wanted to earn themselves from the spending money they received from their Firm, followed shortly by (Sorry) the Dutchman who likes to have everything top as long as it doesn't cost.
The hotel was exactly opposite the Bahnhof, where I sometimes accompanied guests with a suitcase trolley to the platform.
Usually I also helped them carry their heavy suitcases on the train, and then waited a while to see if someone gave a tip voluntarily out of gratitude.
In case this tip did not come voluntarily, I was well armed with a small account block, where I unceremoniously declared DM 2 per suitcase.
To the sometimes surprised reactions and questions if they had to pay for that, I always asked laughing if they were going to work for nobbes every day?
Can't remember anyone refusing to pay yet, and because this service was outside the Territory of the hotel, and we therefore had a free hand from the hotel management, this charging had a lot of consequences among my colleagues.
Sometimes you just have to instill a lack of decency in a decent way.
At pizza hut the same also service charge and VAT. Not so with pizza company often also cheaper. Last 2 pizza for the price of 1 no matter which topping is the same as the first.
Ben
Just a disguised source of income.
Has nothing to do with service etc.
This is already included in the price of the dish.
It also has nothing to do with tipping for service.
Unfortunately, it is often written in small letters on the menu. However, you are looking for a menu and overlook the small letters. It is often already occasions where the prices are on Thai.
And you basically don't go back. Unfortunately, the service charge also comes at the expense of tips.
But despite this, many companies make sales to improve margins. For example, look at the airline, trolleys, administration costs, etc.
I don't really understand this whole discussion.
If a service charge is charged on the receipt, I will not give a 'tip' to the staff anyway.
Conversely, I always give a nice tip if people are friendly and polite (which is often the case).
I won't go back to the places where a service charge is too large according to my standards, simple as that. But usually I go to the local Thai food, much cheaper and always tasty. The shopping centers usually have the same great restaurants – I think most farangs among us know which ones to avoid or not.
I'm certainly not a curmudgeon myself, but be honest, if you know your way around Thailand you can only admit that we can eat and live more than cheaply here. And then of course I am not talking about the places where tourists are fully exploited (but that is a phenomenon all over the world).
SC is often used to secretly increase the bill.
First they don't have it and then suddenly it's there.
just comes out of the blue
On Koh Samui, all taxis are so-called "taxi meters", but they never use the meter.
There is even a large sticker on the doors stating “service charge 50 baht”.
Never understood why this has to be paid, even if you take a taxi on the spot without luggage, the 50 baht will be charged on the always too high fare.
I have emailed the police several times, but never got a response.
So moral of the story: try to take a taxi as little as possible.
Jozef
Complainants are of all times. Did you really think that the police would check their own people after a complaint from a Farang? If you believe this then you have no idea how Thailand works.
If you find that you are always being charged too much, you should agree on a price in advance.
That they don't use their meter is only your own fault. I have taken a taxi so many times, they sometimes try to drive without their meter, a simple comment and the problem is solved. I've never seen them flatly refuse to start their meter.
To file a complaint for this (even several times) is an exaggeration. I think they had a good laugh at the police.
Have you been misinformed? I spent a week in Bangkok last year, had to go to the embassy and then translate and legalize it, so I stayed there.
I stayed in a big hotel, my car was in their parking garage so I did everything with taxis. There was a row of taxis in that street, all with meters, but as soon as you got in and asked if they wanted to turn on the meter, that was invariably refused and a fixed amount was quoted for my destination. Tried several times to take a meter taxi there but always the same story. So every time you walked down the street, a 100 meters further you came to a wide road and there were countless taxis that you could stop. They all used their meters there without being asked. I always give them a generous tip because it doesn't cost a turd but it's about the principle.
Maybe it was because I was staying in a fairly expensive hotel that they wanted to take advantage of that.
Experienced this once in Bangkok at S&P.
Received the bill with the 10% extra service charge.
I asked what this meant. They said that's for the service.
I then showed the menu card and asked where is it?
It was not mentioned! So no payment!!!
Just absurd. So they don't see me in that kind of business.
Regards Pada
only applies where many foreigners are guests. Typical!
Be happy Marcel that we can all be guests here. That is sometimes forgotten.
If we no longer like it here, then we are free, as a foreigner, to return to our own country at any time, isn't that a luxury? Just as we are free to eat in a business with or without a service charge.
Such topics are only good to complain about how bad it is here. Wouldn't we all be more grateful with what Thailand has to offer?
You can worry about service charge or not, but then you also have to ask yourself whether you understand the game.
If the choice is to go cheap, it will be punished nicely. Many Thais have no problem at all with the phenomenon because no tip is paid unless the service or what is offered is appreciated.
The opposite is paying for the toilet in an entertainment tent. Drinking for unusual amounts and also stopping the toilet lady / gentleman and there is usually less objection to that because it was fun.
Going out in any form costs money and if you don't have the money, you can. Given the many restaurants, the problem is not too bad.
Now this piece has been reposted several times, so you can actually predict the reactions.
There are some businesses that charge these surcharges. Have never experienced it myself in the 14 years that I come to Thailand every year (not even in Pattaya). I suspect that it is mainly used in the more expensive shops or tourist hotspots
If I were to experience it, it might be the last time I would visit this place or the offer and the service would be so good that it is worth it.
At that point I wouldn't tip the staff either.
But different countries have different allowances. The cork/bottle tax in many English oriented countries such as Ireland, Scotland and Australia.
The cutlery, taxes and service in many Italian businesses
In the USA, an amount for service of 17, 21, 25% is added to the restaurant/café, which is already stated on the receipt. You can choose from this surcharge depending on how you find the service.
Furthermore, you come to a store and a product is subject to tax, which is not included in the stated prices.
In Prague and Paris there will also be an extra service charge while people also expect a tip.
In Italy and France it also makes a difference whether you drink standing at the bar, at the table or on the terrace.
In Ireland, for example, a 10-20% surcharge is charged if you come with a group of more than 4 people.
While in New Zealand there is a surcharge on all National and Christian holidays
Don't ever worry about it. you decide whether you want to take something there and if you are surprised it is only 1 time