- JEDDAH: The Ministry of Commerce and Industry recently issued a decision to ban all eateries from taking a service charge from customers, but some restaurants did not receive any circular on the matter.
"We will adhere to the decision as soon as we receive the order. We will not increase our food prices, as we do not want to lose our customers," said a restaurant manager in Al-Hamra district in Jeddah.
Restaurants, Mounir Bargougue continued, tend to make anything between SR70,000 and SR120,000 from service charges, depending on the prices they offer and the percentage they allocate for the service charge. "Most restaurants charge around 15 percent for service.”
Bargougue explained that many restaurants divide the service charge between maintenance and workers at the restaurants. "Each worker gets about SR500 a month. Restaurants that rely on the service charge as a source of revenue will get affected by this decision," he clarified.
The ministry has given the eateries 60 days to implement the decisions and urged customers to report violators by calling its center (800 1241616) or by visiting its website (mci.gov.sa).
Chairman of the Saudi Consumer Protection Association (CPA) Nasser Al-Tuwaim told Arab News that restaurants would be monitored by three bodies: the Ministry of Commerce and Industry, municipalities and the CPA. "We urge consumers to keep receipts if they have them and contact us or the ministry. We expect restaurants to implement this decision and we will monitor the prices of meals."
According to him, the CPA had been calling for this since some restaurants set service charges of up to 25 percent. "There is no legal base for these violations, especially as we don't have a taxation system in the Kingdom. At the same time we don't want restaurants to lose money. We would not object if a new and clear system for service charge is identified and implemented."



