Consumer Protection Dept reviewing restaurants charges

The Consumer Protection Department yesterday said it was reviewing the practice of restaurants adding service charge to a customer’s final bill.

Director of the department Sheikh Jassim bin Jabor bin Hassan al-Thani told Gulf Times that as of now the practice was not regulated “giving restaurants a free-hand”.

Gulf Times yesterday reported the increasing practice by dine-in and table-service restaurants (outside hotels) of adding a “service” charge ranging from 5% to 20% to a patron’s food bill.

Customers have expressed their reservation over whether all the money collected thus actually goes to the staff. They also say the practice seems to be increasing with both franchised as well as home-grown restaurants joining the bandwagon.

“This is currently under review. The law doesn’t stop the practice. But it’s not encouraging it either,” Sheikh Jassim said.

Restaurants, meanwhile, maintain the charge is passed on to staff, and if something is held back that is only used to recover breakages inside the kitchens which the industry calculates as a direct overhead cost.

The UAE Ministry of Economy last week banned the practice and gave restaurants and cafés a month to end it or face fines ranging between Dh5,000 and Dh100,000, except those operating out of hotels. Sheikh Jassim also warned outlets seeking a minimum charge for their services from customers.

“As we look into the service charge issue, I would like to remind everyone that the practice of restaurants demanding a minimum charge is simply forbidden and should be reported right away,” Sheikh Jassim said.

Minimum charge (also cover charge or table charge) is when an establishment effectively restricts a customer from buying from below a threshold.

Restaurants that carry a minimum charge maintain the money pays for accompaniments such as garlic butter, olive oils, bread, etc.

“If a cup of tea costs QR5 and that’s all you want to have, then no one should force you to buy more. That is illegal,” the official said. “We have already fined some restaurants and continue to monitor others,” he added.

The Consumer Protection Department works under the Ministry of Business and Trade.

“We continue to work for consumer rights whether it is by publishing weekly price lists (available at www.mec.gov.qa) or organising the first-of-its kind conference to be held this month,” he said.

The conference, “Consumer Protection is Everyone’s Responsibility” will be held on January 27 at the Doha Sheraton featuring major stakeholders.