"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."
Eateries unaware of service charge ban
Publication Date:
Sat, 2012-02-11 03:24
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