When you dine out, you might notice two additional amounts on your bill: a service charge and a tip. Though they seem similar, they serve different purposes. Understanding the difference in the service charge vs tip debate can help you make informed decisions and avoid unnecessary payments.

A service charge is a mandatory fee added by the restaurant, usually a fixed percentage of your bill—often around 10%. It is collected by the establishment and may or may not be distributed to the staff. Some restaurants use it to cover operational costs or evenly divide it among the team, including kitchen staff.

On the other hand, a tip (or gratuity) is optional and given directly to the servers for their individual service. It’s a way for customers to reward good service and is not legally required unless stated. Tips often vary depending on your satisfaction, typically ranging from 10% to 20% of the bill.

So, service charge vs tip comes down to this: the service charge is fixed and controlled by the business, while the tip is voluntary and personal.

To avoid double tipping, always check your bill carefully. If a service charge has already been added, you’re not obligated to leave a tip—unless you feel the service was exceptional.

Knowing the distinction between a service charge and a tip ensures fairness for both customers and staff, making your dining experience more transparent and enjoyable.

Visit: https://restaurantify.com/top-things-you-need-to-know-about-service-charges-vs-tips/