SiliconGlen, Scotland.

Gordon,
I have watched your TV programme where you go into an individual restaurant and go through them like a dose of salts and get them sorted out. How about doing us frequent diners a favour and getting the whole industry to clean up its act.

I go to Tesco and get a milkshake for £1
I go to Boots and get a lunch for £2.99
I go to a pub and get a decent meal for £10 including drinks.

Rarely do any of the above refuse to accept credit cards.
Rarely do any of the above expect a tip, especially for shoddy service.
Rarely do any of the above distort their prices with hidden charges.
Rarely do any of the above fail to generate a VAT receipt, legally compliant and showing the VAT paid.

Yet go into a restaurant (not a pub or in a hotel), pay £20 upwards for a meal and invariably you get a scribble for a bill, no itemised VAT and often a mandatory service charge too. Together the 10% mandatory charge and the inability to claim back VAT adds almost 30% to the expected price of the food. What other business has a service charge which is optional to charge but mandatory to pay? Why does 1 person dining get charged for service anyway? Why are pubs clear with their pricing and billing but restaurants are not?

I have no objection to tipping, but a mandatory service charge just distorts the price of the food.

I call on you to ban this 30% surcharge on food and get restaurants to issue correct bills (with the VAT total separately itemised) and to stop this nonsense of mandatory service charges for 1 person dining, indeed I would welcome them being banned for tables of 4 or less. There's no need for it and it simply annoys and confuses customers and puts them off. The bill is the last thing the restaurant serves, don't let the parting taste be a bad one.

Yours in hope
Craig (a fellow Scot working in Central London)

Labels: Restaurants, Viewpoint

Visited here on 5th November to see if their food might be of interest for a future visit. Unfortunately as I was reading the menu the rude waiter demanded to collect all the menus in so I never got to make my mind up if the food would be worth returning for. In that event, I won't be returning and will likely go somewhere with better service.

Beer range limited, food range also appeared to be limited (from what I was permitted to see)

Avoid. Well worth the lowly 2/5 rating in Fancy a pint

To all pubs and restaurant: Please don't take menus away, customers might actually want to read them. They aren't a state secret.

Labels: Restaurants, Viewpoint

If you bought some goods and then had a mandatory 30% charge slapped on them without warning you'd probably be pretty annoyed.

Restaurants do this with alarming regularity, nowhere else indulges in such a dubious practice so why do restaurants such as the Star of Bombay and indeed about 90% of other restaurants annoy and mislead customers like this when 99% of non restaurant businesses are open and honest about their pricing?

Supposing the price of the food is £20. On top of this slap the 10% mandatory service charge whether you like the food or not and even if it's just you eating. So the price of the food is now £22. Rather than an honest price for the food of £22, it's a dishonest £20 with an extra £2 even if the service was rubbish.

On top of that, as a VAT registered business I should be able to claim back the VAT by getting a VAT bill. So the real cost to me should be £20 * 100/117.5 or £17.02. Instead, because the restaurant just issues a piece of paper with a VAT number and a total on it, this is not a VAT bill and as the VAT isn't separately itemised, it can't be reclaimed. Combined with the dishonest 10% mandatory service change (little more than a table ordering charge, since pub bring the food to my table and don't charge a tip) the cost of the meal is £22 instead of £17.02, a mark-up of over 29% and nearly £5. Eat out 5 times a week on business and approx 1.5 meals equivalent cost is due to rip off charges and poor billing practices by restaurants rather than the actual price of the food which I need to eat. When I registered for VAT, one of the first things I learned was how to issue a correct VAT invoice for customers and all it takes is a piece of paper, a computer or till, a printer and calculator/excel/word or similar so that the invoice has the total, vat total, date, address, and VAT number. Hardly rocket science, so why do restaurants think they are the only sector that can do what it likes in terms of billing? It also makes me wonder if a restaurant can't meet its VAT legal obligations, do they have the same laissez-faire attitude towards legal obligations towards food hygiene which require more skill to meet?


Anyone that rips me off by nearly 30% doesn't deserve praise. So in a recession where places are competing for customer business, I will be sending more business the way of pubs because 95%+ of pubs can produce a proper VAT receipt and don't rip me off with a mandatory service charge, whereas 90% of restaurants do (and they are more expensive). I note most restaurants, especially midweek, are pretty quiet just now. They might be busier if there wasn't a 29%+ surcharge in the bill.

As for the food at the Star of Bombay, well it may be the favourite restaurant of The Chemical Brothers, but I found the food fairly ordinary, the poppadoms were too crispy and disintegrated on touching and dumping the sweet menu in my face without asking me if I would like to see the sweet menu meant the mandatory 10% "service charge" was taking liberties with the name of service.

As for the Star of Bombay, I'll leave the Chemical Brothers to it and eat elsewhere in future. There's no chemistry here for me.

'Craig ate here' on 16th October.

Labels: London, Restaurants, Viewpoint

Decent enough pub serving a good choice of real ale and large portions of food. The slab of salmon completely dominated my plate and was one of the largest portions of fresh fish I've had in a while. Speedy service and a proper VAT receipt (unlike most restaurants) count in its favour, although having to walk through a smoky beer garden to get to the door was no fun. Convenient for Lancaster Gate tube and probably worth a repeat visit that next time I fancy a large slab of salmon!

'Craig ate here' on 14th October.

Labels: Restaurants

Excellent traditional London pub steeped in history, serving great food at competitive prices. Good choice of Fullers beers makes this an ideal destination for the real ale enthusiast. Ample wine menu. There is also an upstairs function room. Quiz night 9pm Tuesdays can be busy, but there are also a few outside tables if it's full inside. Decent curry across the road too. Unlike many restaurants I've eaten at in the Paddington area, there's no mandatory rip off 'service charge' for the cheery service and unlike said restaurants, The Victoria CAN give you a correctly itemised VAT receipt. Excellent food, excellent atmosphere, excellent service. Recommended and will return and I suggest a few restaurant owners should dine at The Victoria too and learn how it should be done.

'Craig ate here' on 13th October.

Labels: Restaurants

Food poor, service even worse . Mandatory service charge even if you think the service doesn't deserve it. They can produce a bill with the service itemised but not a correct VAT bill with the VAT itemised, even though they know it should be. Oh and my credit card receipt said "cash". Dodgy food, dodgy billing. Avoid.

Craig

Labels: Restaurants, Viewpoint

I've blogged before about VAT receipts but just for the benefit of the 90%+ of restaurants who seem to think that a total and a VAT number constitutes a VAT receipt, here's the news - it doesn't.

The two things that most restaurants leave off is the separately itemised amount of VAT included in the bill and the rate of VAT applicable. If any restaurants are reading and want to know what you need to put on a VAT receipt, please check out the HMRC website.

thanks
Craig

Labels: Business, Restaurants

Great Indian food, competitive prices. You need to remember to prod the waiter after they've collected your main course plates otherwise you get ignored. Also, no proper VAT receipt either just a total and a VAT number.

What must be on a VAT receipt.

Labels: Business, Restaurants

Following my blog post on tips in April and my note on the government better regulation site logged at the same time, I am pleased to report that at least part of this is now being taken seriously by the government as reported in today's news. We now need to get complete transparency for charging in restaurants now and abolish the nefarious practice of the mandatory service charge, which only serves to distort prices for customers. No other industry distorts their prices this way, and it has to stop in restaurants. The government response (below) to my idea is non committal and does not help consumers.

There are no regulations covering the practice of mandatory service charges or tips; it is a matter for the individual establishment to decide if they make non-optional charges, at what level the charges are set, and if they include different rules in certain circumstances ie parties over a certain number. Of course, consumers can exercise choice by refusing to dine in the establishment where they consider the charges to be unduly prohibitive. However, where obligatory charges are enforced, they must be set out clearly for the consumer whenever there is an invitation to purchase, ie on a menu card. The Consumer Protection from Unfair Trading Regulations (CPRs) 2008, which came into force on 26 May, require traders not to omit material information which the average consumer needs, according to the context, to make an informed choice but is not prescriptive as to how this information must be given (eg in writing). A case could be made that the average consumer is likely to want to know what mandatory charges are included

The Prices Practices Guide which recommends to traders a set of good practices in giving the consumer information about prices in various situations, and takes account of the provisions of the CPRs, advises that where customers are required to pay a non-optional extra charge, such as a service charge, then it should be incorporated within the fully inclusive price wherever possible, also the non-optional charge should be displayed clearly on any price list or priced menu whether displayed inside or outside the establishment. Where, however, an optional sum is suggested for service, it should not automatically be included in the total bill presented to the customer.

Where a service charge or a tip is paid via a bill, it is a matter for the employer to negotiate with the employee how they are shared out. There is no law which sets this out. However, monies paid to a restaurant (eg by credit card) belong to the restaurant in the first instance, and tax is due on tips however they are paid to the waiter. National Insurance Contributions will be due if the tips are paid to workers by the employer.

Craig

Labels: Business, Restaurants, Viewpoint

Lahore Kebabhouse, E1 1PY

Excellent food and service. Great prices, no pretentiousness. No mandatory tipping or service charge either.

Only slight drawback is that it's yet another place that has a VAT number but doesn't issue correct VAT receipts (with the amount of actual VAT paid on them).

Here's the link Lahore Kebabhouse.

There's also some rather excellent curry to be had at the Noor Jahan 2, 26 Sussex Place, London W2 2TH but again is let down by the inability to produce a correct VAT receipt showing the VAT paid, meaning that the tip amount gets paid to the VATman rather than the staff. Food is excellent here though and there is also a very good pub just across the road, the Victoria at 10a Strathearn Place which has great food (stops at 9:30pm) and great beer. Busy on Tuesday evenings in the pub. Anywhere that gets 5 pints on Fancyapint.com is worth a visit.

Craig

Labels: Restaurants, Viewpoint

Great food, lousy service.

the service really let down the fine efforts of the chef, be warned.

first of all, when I was asking about the menu, the waiter wandered off.
The main course was served while I was still eating the starter.
The empty plates from the starter were left on the table when I was eating the main course.
There was no fresh cutlery brought for the main course.
I wasnt asked at any point if the meal was ok or if I enjoyed it.
Receipt isnt a proper VAT bill, it has to show the amount of actual VAT paid, not just a total.
Service for the dessert and bill were slow.

Great food badly let down by shoddy service - just as well the service isn't included.

See what other diners thought by looking at the reviews at the following link:

Labels: Restaurants

I haven't written a long blog in a while so I thought it was time to post this missive now that I've been living in London for 7 weeks.

I last tipped in a restaurant in December and I eat out 4 nights a week. So strictly speaking I do tip, when there's exceptional service and I want to say thanks (the last time was at Benedicts of Belfast) but so far I've been pretty unimpressed with London. Yet, some restaurants demand a 10% tip, there's no way to remove it from the bill and the service is pretty average.

I don't expect London to be cheap, but working in Whitehall, I can pop up the road from Downing Street and the Palace of Westminster and eat near the corner of Whitehall and Trafalgar Square at the Wetherspoons "Lord Moon of the Mall" for about a tenner including a drink. That's about as central as you can get, a stone's throw from where all the distances to London are measured and a few minutes walk from both the centre of government, theatreland, The Mall and The Strand. A decent (if somewhat basic) meal, a pint of beer and about a tenner. You pay at the bar so there's no tip added to the bill either.

Yet eat at a restaurant, even in more outlying areas such as Aldgate, Pimlico, Bayswater and so on and you'll usually pay over £20 for a meal for one in a restaurant for much the same meal. Eat in a pub, even a good one with "5 pints" on the website fancyapint.com and you get decent food, a drink and it's still around £10-£12. There's clearly a rip off market amongst restaurants who seem to think it's par for the course to whack on at least a 50% premium then look surprised when I don't want to pay the mandatory 10% surcharge on on top of that just because someone has carried a few plates 6 feet from the service hatch to my table then asked me if the meal was OK, cue reference to the "Maharaja Indian Restaurant", Queensway London which indulges in this nefarious practice.

Then you get the bill and have to ask for a VAT receipt. Usually this is some sort of semi-scribbled effort that if you're lucky has the total and the VAT number. Sorry, not good enough. Because goods are rated at different levels, in order to accurately know what the VAT amount is, you can't just guess that 17.5% was added on to the net amount. The receipt actually has to show the amount of VAT paid, just like the receipts I get when I shop in major supermarkets. So even if I was thinking of giving a tip for outstanding plate carrying to my table, the amount of tip I was going to leave has more than been eroded by the fact that the said restaurant is incapable of producing a proper VAT receipt with their VAT number on it, the total VAT paid and the total of the bill. There goes their "tip" - off to the VATman because of incompetency.

So if I get a square meal like I do in Benedicts of Belfast (the sort of food where people come from miles around to eat there) or even basic food such as Wetherspoons and pay £12 then I figure for a restaurant in an expensive area it's going to be around £15 including VAT, assuming I get a correct VAT receipt. I know it's economic to run a restaurant on that basis, the Lord Moon of the Mall in Whitehall shows it can be done for much less.

Any restaurant wanting £20 for the same and especially those with no VAT receipt have just used up my budget and gone over by a fiver. The tip has already been spent on overpriced food.

So that's what I don't tip (in London at least). It's so completely different in the US, where eating in restaurants is much cheaper, the portions are much bigger, the service better and you actually feel tipping is worthwhile and the server deserves it rather than in London where it's a surcharge on top of a rip off.

Comments?

Labels: Hotels, Restaurants, Viewpoint