Service fees for tips are becoming more and more common, with some restaurants now adding them to bills automatically. But are these service fees actually going to the workers? We take a look at the pros and cons of this new trend.
Service fees are common in the service industry and are typically a percentage of the total bill. A service fee is generally added to the bill before the total is calculated, and is then paid by the customer along with the total. Service fees are often used to cover things like credit card processing fees, administrative costs, or gratuities for the staff. Many businesses will allow customers to leave a tip on top of the service fee, which is then distributed among the employees.
While tipping for services is not required in the United States, it is always appreciated by service providers. If you're happy with the service you received, a 15-20% tip is standard. Tipping is a great way to show your appreciation for good service, and it's also a nice way to show your support for the hard-working men and women in the service industry.