Do I have to pay a service charge on takeout orders?

Whether a service charge is required on takeout orders depends on the restaurant's policies and local regulations. While it is common to see service charges applied to dine-in services, service charges for takeout orders are generally not as common. However, there are scenarios where they might be included, and consumers should understand their rights and options.

Service Charge on Takeout Orders:

Restaurant Policies:

Some restaurants or food establishments may include a service charge on takeout orders, especially if the business offers additional services such as delivery, preparation for special orders, or high-end packaging. The restaurant's terms of service should specify if a service charge is applied to takeout orders, and this should be clearly stated on the menu, receipts, or the order confirmation.

Tipping vs. Service Charge:

It's important to distinguish between a service charge and a tip. A service charge is typically mandatory and is added automatically to the bill, while a tip is voluntary and given based on the customer's satisfaction with the service. In some cases, a service charge may be applied to takeout orders if the restaurant includes certain elements like preparing large or complex orders or offering additional convenience services. A tip, on the other hand, is discretionary.

Local Regulations and Consumer Protections:

Local laws and regulations may impact whether a service charge can be applied to takeout orders. For example, in some regions, service charges are not permitted on takeout or take-away orders, especially if the service provided does not involve in-person service. Consumers should check local laws or consumer protection guidelines to determine whether a service charge on takeout orders is legal or appropriate in their area.

Clear Disclosure of Charges:

If a restaurant chooses to apply a service charge on takeout orders, it is typically required to disclose this charge upfront. It should be clearly indicated on the menu, at the time of the order, or on the receipt. If a customer is unaware of the charge and it appears unexpectedly, they may challenge the validity of the charge or request clarification from the business.

What to Do If You Are Charged a Service Fee for Takeout:

Check the Menu or Website:

Before placing an order, check the menu or restaurant’s website for any mention of service charges or additional fees for takeout orders. If you notice a service charge, you can decide whether to proceed with the order based on the total cost.

Ask for Clarification:

If a service charge is applied to your takeout order and you’re unsure why, it’s perfectly acceptable to ask the restaurant staff for an explanation. In some cases, the charge may be linked to certain services such as delivery, packaging, or custom orders.

Challenge Unfair Charges:

If you believe the service charge is unfair or not disclosed properly, you can dispute the charge with the restaurant or file a complaint with consumer protection agencies. Consumers have the right to be informed of any charges that are added to their orders.

Tipping Etiquette:

Remember that tipping is separate from a service charge. If you are charged a service fee on your takeout order, you are not obligated to leave an additional tip unless you feel the service warrants it.

Example:

Imagine a customer orders takeout from a local bistro and is surprised to find a 10% service charge included in the bill. The restaurant explains that the service charge is for packaging, preparation of custom orders, and delivery options they offer. The customer:

• Reviews the restaurant’s website and menu before ordering and notices the service charge policy.
• Chooses to proceed with the order after understanding the service charge applies to all takeout orders.
• If they disagree with the charge, they could ask to have it removed or challenge it with the restaurant management.