Service Charge

Service Charge in USA Restaurants:

What is a service charge?

- A service charge is a mandatory fee added to the bill at some restaurants in the USA.

- It is usually applied to larger groups (8 people) or for private events.

- The charge typically covers additional staff needed for larger groups, such as additional servers or bussers.

How much is a service charge?

- The standard service charge is 18% of the total bill.

- Some restaurants may add a different percentage depending on their policy.

- Some states have regulations regarding the maximum service charge that can be added, which is usually around 20%.

Where is a service charge charged?

- Service charges are commonly found in:

- Large, upscale restaurants

- Tourist areas

- Restaurants with large groups policy

What happens with the service charge?

- The service charge goes directly to the restaurant.

- It is not distributed to the servers.

- The tip should still be added on top of the service charge for excellent service.

Things to remember:

- Always ask if a service charge will be added before you sit down at a large group table.

- The service charge is separate from the tip, which is still encouraged for good service.

- Many restaurants clearly display a "service charge" notice on their menus or signage.

Additional notes:

- Some restaurants may add an administrative fee or other charges to the bill in addition to the service charge.

- It is always best to clarify the charges before placing an order.