Service Charge

+ new work for TMC, a toothbrush that's actually exciting & more!

Dear Friend,

Today, I’m (over)thinking about the service charge. This week, it was announced that restaurants could no longer levy service charges by default. It is hard to fault the argument of the CCPA (Central Consumer Protection Authority) - the cost of services, after all, has already been included in the cost of the items on the menu. So of course it’s not fair that a customer needs to pay an additional 5% (and sometimes, even 15%) and GST on top of that.

The original idea behind service charges was to ensure that the entire kitchen (chef included) benefitted from the tip and not just the waitstaff. And while it was well-intentioned, its implementation was a mess, because it made tipping, something that was totally optional, seem mandatory by adding it to the bill without informing the customer about it. Some restaurants slapped the charge on without warning. Some others would have a line on the menu stating “we levy an optional 7.5% service charge”, but if you tried to dispute it because you had a bad experience as a diner, the reactions usually varied from whining (if you were lucky) to harassment that’s valid in a court of law.

So is it a good thing now that service charges cannot be levied by default anymore? Yes.

But it’s also hard to ignore the usually underpaid service industry workers who’re expected to meet the shortfall in their salaries with tips. The industry is very exploitative. One can only hope that restaurants now compensate workers with the service charge component that will no longer be a part of their pay. Better paid workforces are almost always better performing workforces.

I suppose in its own way, the illegality of service charges allows diners/consumers to tip the old-fashioned way - only when they’ve had a good time.

---

PS: If you’re confused about how much to tip: 7.5 - 10% of your bill amount is usually standard.

---

Stuff Of Note

Two things I’ve bought and enjoyed recently and would recommend:

1. The toothbrushes from Perfora are fantastic. They look great, force you to brush for 2 minutes and have held up way better than any other electric toothbrush I’ve used in the past. They have an entire suite of dental care products and I have also really enjoyed their mouthwashes, which are a gentler alternative to the likes of Listerine.

   There’s always a sale going on their site (one of the perils of being a D2C brand in India I suppose) so make sure you check for a coupon code before you check out.
   

2. If you, like me, suffer from terrible handwriting (thanks to overusing the keyboard), I’d like to point you in the direction of the 90s child essential, Pilot pens. I’ve recently rediscovered the V7 variant and have noticed a significant improvement in my handwriting and a general keenness to write more. There is this very tangible satisfaction that comes from using them and if you’re a victim of the stylus/keyboard, you’ll be sure to rediscover the joy of writing through these pens.

---

Reading List

Did you know that I’m now writing a newsletter for The Morning Context? I’ve always been a huge fan of their journalism, so to be a contributor is very exciting. Two issues have come out so far:

1. On the cost of having a child

2. The dark side of buy now, pay later

There’s more to come, so do subscribe, if you haven’t already.

Other reading:

1. What is FOMO Investing? Why is it dangerous?: Pennmoney Archive

2. Should I tell first dates I’m rich?: The Cut

3. Inside the mind of the reluctant Indian consumer: Livemint

Until next time,

Lavanya

---

What do you think of this new format? I’m just trying to have a bit more fun with this space. If you think you know someone who might enjoy reading this newsletter, do forward this email to them.