Restaurant service charges: Should they be banned?

In recent weeks, the media has been awash with various reports about so-called restaurant service or cover charges (hereafter referred to as ‘coperto’). The issue came to the fore following a report by a former member of parliament questioning the reasonableness of such charges. Different sections of the media have in turn taken up the issue.

But should such coperto charges be banned by law? I firmly believe they should. Moreover, the necessary legislation and regulatory measures should be made and properly enforced in short order. If this is not done, I am afraid this practice may catch on like wildfire to the detriment of both customers and the catering industry at large. Only just recently, Corfu was hit by reports of hidden charges and chaotic bills giving it the unsought reputation of some sort of tourist trap for the unwary. Certainly, we need to be on our guard to ensure the same does not happen here.

I recently was on the receiving end of such charges. We were two persons. Going through the bill, I noticed a coperto charge of €7, meaning a charge of €3.50 per person. I do not recall reading any notice on the menu advising me of such a charge. And even if there was, what was I supposed to do. Raise a hue and cry about such a charge and ruin my evening in the process? Dining out in the evening is supposed to be a relaxing moment that one spends with family or friends, not a crusade to be on the lookout for hidden charges.

Most restaurants to date do not levy such charges, but increasingly it seems that a small minority are opting to include such charges as matter of course. One justification given for such charges is to offset the increase in the costs of running a restaurant including labour costs. If one really needs to increase the price of his or her product then by all means if it is justified. Restaurants should update their prices but not through subtle indirect means by imposing arbitrary coperto charges where the paying customer, in practice, has no say.

If a restaurant wants to increase the price of a pizza then by all means it is free to do so. The paying customer would, on reading the menu, know precisely that a pizza Quattro Stagioni will cost €15 with no added coperto charges. If on the other hand, a competing restaurant offers a similar pizza at €12 but the bill also includes a coperto charge of €3 three euros, to some extent it can even constitute unfair competition since a similar product is being offered at a seemingly lower price.

If a client is to be charged, they should have a choice. Some restaurants price side plates such as vegetables apart. That is their prerogative, fair enough. Equally, it is the prerogative of the customer to decide if he or she wishes to pay extra for say a side plate of French fries. All this is done transparently and the customer knows precisely what he or she is paying for. Conversely, however, this is not the case with a coperto charge, where the customer is required to pay no matter what.

To date, most restaurants leave it up to their customers to decide whether to tip for the service and food provided, which is how things should be done. Invariably, if I am pleased with the fare provided a reasonable tip follows with probably repeat visits to the restaurant concerned. By all means one should charge what he or she believes is a fair price for the product and service given–in this case a good meal–but should do so transparently with no hidden surprises for the unsuspecting customer. Doing otherwise will undermine the catering industry.