A pub in London has raised eyebrows by adding a 4% service fee to all orders, even if you’re served at the bar.
The Well and Boot in Waterloo adds the discretionary service charge automatically to all punters’ food and drink bills, taking the average price of a pint up by 30p.
Looking at the pub’s menu online, a pint of Guinness costs £7.45. The 4% charge takes that to £7.75 (assuming you just ordered one).
Cocktails cost £12.50, but customers would end up paying £13 if they ordered one.
At the bottom of the menu, there is a note that says: “VAT is included in all prices. A discretionary service charge of 4% will be added to all bills.”
A sign at the bar tells customers that “100% of tips” go to staff.
What do you think? Let us know in the comments
While service charges are not unusual, they tend to apply in establishments where customers are seated and served by a waiter, and it usually means there is no expectation for a customer to leave a tip.
Customer Martin Quinn stopped at the pub, owned by Glendola Leisure, to grab a quick half pint of cider but felt he was “disadvantaged twice” after being hit by the 4% charge and forced to pay by card.
“There are two issues. One, why are they charging 4% when you’re not getting any service? You’re literally being poured the drink at the counter. I think [automatic service charges] are disgraceful,” said Quinn, a campaigner for the use of cash.
“The second is that I wanted to pay with my £20 note, but I wasn’t allowed to. I didn’t want to pay with my card, but I had to. I had no choice in the matter.”
He said he didn’t realise he had to pay the extra 4% at the time, and only noticed after taking a photo of his drink and seeing a sign in the background.
“Why should the poor punter be at the brunt of this? It’s an optional surcharge, but we don’t like complaining,” he added.
Glendola Leisure has been contacted for comment.
Do you have to pay a ‘discretionary service charge’?
In government guidance to businesses, it says there is no obligation for customers to pay a voluntary service charge.
“HMRC accepts that a payment is a voluntary service charge if it is clearly presented to the customer as an entirely optional payment,” it says.
“The literature seen by the customer should reflect that and be consistent with advice given to customers by staff.”
Under the Employment (Allocation of Tips) Act 2023, which was introduced last year, all service charges, tips and gratuities must be paid directly to staff.
We asked Rupert Wesson, director of professional coaching company Debretts, what you should say if you are faced with a service charge.
“Adding a 4% service charge to every order, whether served at table or at the bar, seems a rather inelegant solution to the problem of very low margins in hospitality,” he said.
“If faced with a 4% service charge, it is important to establish if it is mandatory or optional. When presented with the bill, say ‘could I ask if the service charge is optional?’ This should be made clear before ordering, of course, but this may not be the case.
“If it is optional, you have the choice not to pay and you should not feel bad about this… It does, of course, give you the chance to pay a tip via the tips jar.”
