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So basically for the last three years, everytime you've eaten out you've paid out unneccesary money! Can I get it back please?

According to 7 Days today:

http://www.7days.ae/storydetails.php?id=88470&title=Off the menu

Restaurants have been told to stop adding service charges to bills - because it is illegal.

The Supreme Committee for Consumer Protection issued the warning yesterday and said the custom of adding a service charge to bills had been illegal for more than three years.

The committee, which is chaired by Sultan Bin Saeed Al Mansouri, the Minister of Economy, said that under Consumer Protection Law 26, issued in 2006, restaurants are not allowed to add any service charge to a bill.

The committee is now urging authorities in each emirate, including Dubai, to enforce the law.

Service charges were discussed at a meeting of the committee in Dubai, where it also talked about managing food prices.

The committee said it had received complaints about restaurants charging up to 20 per cent of the total bill as a service charge. And Al Mansouri said the ministry would take serious measures against those who violated the law.

The news has surprised some restaurant owners, who said they did not know it was against the law.

One manager, who runs a branch of a popular international chain of restaurants, said it was common custom in Dubai.

“We levy a ten per cent service charge on the bills. It is mentioned on the bill and also on the menu card. It is permissible in the UAE,” he said.

However, the owner of an Indian restaurant in Karama said it did not add a charge.

“It’s only big restaurants who have a service charge. Small restaurants don’t do it,” he said. And, when contacted by 7DAYS, a five-star hotel in Dubai also said that it thought it was legal to add a service charge of ten per cent to bills, along with ten per cent municipality fees.

One Dubai resident said: “I’m astounded - I have been paying ten per cent minimum every time I have eaten out for the past five years. Will I get my money back?”

Hence I never tip if there is any additional charges in the bill. If any body makes a face afterwards he gets told. Service yani tips already added in the bill so mafi additional tips

I am now wondering who was actually receiving the 10% service charge, I was under the (possibly) misguided impression that it went to the waiter / waitress.

desertdudeshj wrote:Hence I never tip if there is any additional charges in the bill. If any body makes a face afterwards he gets told. Service yani tips already added in the bill so mafi additional tips

Treu, but you know damn well that the staff would never receive the tips if it's added onto the bill! Anyway this way it's better as you can choose to tip and give it to the staff personally, if it's deserved.

I always tip for good servie regardless of service charge; and yes, the service charge generally goes to management, or is shared b/w management and waiters...

Of course they justify it by saying "what use is tips to a waiter if the restaurant closes down due to less proft, so its better to direct tips toward managers"....

sage & onion wrote:I am now wondering who was actually receiving the 10% service charge, I was under the (possibly) misguided impression that it went to the waiter / waitress.

Very misguided impression S&O. I was told by a waiter that they did not receive anything from the service charge. The "owner" used it to pay for their accommodation, transportation, etc. Even if the wait staff did receive a percentage of the service charge, it would certainly be considerably less after the cut for accommodations, transportation, etc. is taken from it.

Coming from the States the prinicple is 12-15% of the total bill. Here in Dubai when they tack on a service charge of 15-20% I am hardly going to add on another 12-15%. If I go to a restaurant that adds on a service charge, I don't go back. On those occasions that I found myself in a restaurant that adds on a service charge I may leave an additional 5 AED (cash), but you know what?, if the staff is unhappy with that - then let them take it up with management.

If a restaurant adds on a "service charge" where is the incentive for the staff to provide quality service if they aren't going to financially benefit from it? On the other hand, if they do financially benefit from it, they know they are going to get something from the service charge regardless if they give poor or fair service or excellent service.

Service is generally better when there is no service charge involved. Waiters/waitresses know that their performance is going to determine the tip that is left.

Chocoholic wrote:So basically for the last three years, everytime you've eaten out you've paid out unneccesary money! Can I get it back please?

Choc...no you wont....did you ever get any money back at all for anything?

gertrude wrote:

Chocoholic wrote:So basically for the last three years, everytime you've eaten out you've paid out unneccesary money! Can I get it back please?

Choc...no you wont....did you ever get any money back at all for anything?

Gertrude, introduce yourself to the notion of sarcasm please!

^^^^LOL.

Chocoholic wrote:

gertrude wrote:

Chocoholic wrote:So basically for the last three years, everytime you've eaten out you've paid out unneccesary money! Can I get it back please?

Choc...no you wont....did you ever get any money back at all for anything?

Gertrude, introduce yourself to the notion of sarcasm please!

Who is sarcastic Choc, you are the one who started it. And frankly, it should have been illegal from the start since the waiters get close to nothing from this service charge. But it is so typicall of Dubai, what is legal one day, becomes illegal the next day.
Now, as a personal experience, I never got any refund for anything, at best I got a credit, or a replacement with a "floor" item.

Choc...no you wont....did you ever get any money back at all for anything?

Gertrude, introduce yourself to the notion of sarcasm please!
Who is sarcastic Choc, you are the one who started it. And frankly, it should have been illegal from the start since the waiters get close to nothing from this service charge. But it is so typicall of Dubai, what is legal one day, becomes illegal the next day.
Now, as a personal experience, I never got any refund for anything, at best I got a credit, or a replacement with a "floor" item.

Hey Gertrude, it is obvious that Chocs was being sarcastic on this item, lighten up a little. On the other hand I have been refunded monies on several occasions at various establishments, always providing the rules and regs have been followed, and also I am BIG (was) and I scared the living daylights out of them.

Yes I even had etisalat refund me money for the days my internet was down. I think that was my biggest achievement of my 33 years in this country

come on 10% to 20% is nothing. these guys have to survive as well, they have to pay rents and wages and god knows what else.

think about it if you go in a fancy restaurant you will spend what, 100dhs? thats 10dhs to 20dhs for service. if you got 100dhs and you are willing to pay 100dhs then why is 10dhs or 20dhs a big thing for you??

Man what "fancy"resturants you being going to ? 100dhs that barely cover food court for two nowadays !

A coffee get toghter for a few friends at Le meridien cost over 400 bucks day before yesterday.

I don't think anybody minds tipping if deserving, the problem is I'm not or many here are made of money to pay for food plus all that crap charges plus a tip on top, that can get costly.

400 bucks :S you got money growing on trees or do you grow money in your garden or something???? the fact is there is so much competition out there and they have got their expenses to worry about.

i went to some restaurant in the mall of emirates and i paid 100dhs for a juice

all I am saying is that if you are paying 400 bucks than why is 20 or 40 bucks such a big issue if it is than why go to a restaurant that is so expensive when there are plenty of nice ones at a reasonable price.

Yes i do understand where you guys are coming from where someone charges you for doing nothing. like your laundry guy charging you 5dhs for the service fee

Every one has made a hue and cry about this 10% service charge levied by the restaurants in UAE. Ministry says service charge is illegal and restaurants continue to justify the same. Damn, if this the Govt Rule..why are the restaurants still following the practice? Some of the restaurants have gone to the extent of justifying this charge...silly..Check this post - I have got few links of the articles published on the same issue..

http://iwep.blogspot.com/2009/12/restau ... rvice.html

Cheers
Immo...

see there are always a way around the system

ok restaurants will remove the 10% but how do we know that the next day they havent increased their prices by 10%? Then what?

rudeboy wrote:see there are always a way around the system

ok restaurants will remove the 10% but how do we know that the next day they havent increased their prices by 10%? Then what?

Thats easy, you simply keep a little note about food prices at your favourite restaurant and when the prices aren't changing...you simply refuse to buy food! However, don't forget to mention this to the staff, so they can reflect on themselves as to why they are losing customers from that point onwards...

supply and demand = prices, so if demand falls...prices fall. You just need a little lasting sacrifice on your part to reach that goal.

Update on this debate:

1. Service Charge Debate
2. Bylaw Needed Before Consumer Protection Law of 2006 Can Be Enacted !!! Madness

Without proper law enforcement they are able to implement a thousand law, but they won't help you a penny. Its simple fraud and should require a decent lawsuit to deal with this as a general warning, I guess.

rudeboy wrote:come on 10% to 20% is nothing. these guys have to survive as well, they have to pay rents and wages and god knows what else.

think about it if you go in a fancy restaurant you will spend what, 100dhs? thats 10dhs to 20dhs for service. if you got 100dhs and you are willing to pay 100dhs then why is 10dhs or 20dhs a big thing for you??

Hey big spender, is that your bill for a family of 8 in a "fancy" restaurant?? I don't think Ravi's or a cafeteria counts as a fancy restaurant. LOL.

Are you talking 10dhs or 20dhs on top of the 20% service charge? If that's the case and seeing what a "night out" in a "fancy restaurant" costs you, I doubt you would add on to the service charge.

Bahh ! just paid 10% service charge at gourmet burger king. Although the food was good and huge portions. The milkshake was humongous ! I wanted to actually ask the waitress if this goes to them or the greedy owners hog it. Seemed like perfect timing too. As the owner or atleast someone higher up in management had arrived.

But ofcourse the wife made a face and splashed out the NOOO we don't want to make a scene and look cheap attitude !

desertdudeshj wrote:Bahh ! just paid 10% service charge at gourmet burger king. Although the food was good and huge portions. The milkshake was humongous ! I wanted to actually ask the waitress if this goes to them or the greedy owners hog it. Seemed like perfect timing too. As the owner or atleast someone higher up in management had arrived.

But ofcourse the wife made a face and splashed out the NOOO we don't want to make a scene and look cheap attitude !

That waitress probably had her passport handed over to her employer. So if she wants to keep her job, she better be quiet aight?

51 percent of the service charge goes directly to the Emirati owners. The other 49 percent is to keep the business going. Next time, try the manager himself. Maybe he can explain the rip-off

RobbyG wrote:51 percent of the service charge goes directly to the Emirati owners. The other 49 percent is to keep the business going.

And where do you get all this false info from ???

Technically outside of freezones yes the local owns 51% bussiness but 90% of the cases they are paid a yearly sum to sign some papers, keep quite and stay out from meddling in any matters and thats the end of it.

I paid my greedy sponsor some money yearly and fed him him some crumbs if I wanted to have some official work done. Was worth it as he would handle all the hassle and headache and do all the run around in the govt offices and had brothers and cousins working in places which would get work done easily.

desertdudeshj wrote:

RobbyG wrote:51 percent of the service charge goes directly to the Emirati owners. The other 49 percent is to keep the business going.

And where do you get all this false info from ???

Technically outside of freezones yes the local owns 51% bussiness but 90% of the cases they are paid a yearly sum to sign some papers, keep quite and stay out from meddling in any matters and thats the end of it.

I paid my greedy sponsor some money yearly and fed him him some crumbs if I wanted to have some official work done. Was worth it as he would handle all the hassle and headache and do all the run around in the govt offices and had brothers and cousins working in places which would get work done easily.

It was a bold statement, but not inherently false.
I happen to know a few business owners (expatriates) who get scraped to the bone from this shared business construction. They aren't able to expand their businesses as they would like to do, since 50 percent of profits go to the Emirati owner each year, with a lower attendance to the business. Its more about survival for businesses, especially in the current economic situation.

Not every Emirati is the same though. You clearly had a contributing one. Good for you.

RobbyG wrote:

desertdudeshj wrote:Bahh ! just paid 10% service charge at gourmet burger king. Although the food was good and huge portions. The milkshake was humongous ! I wanted to actually ask the waitress if this goes to them or the greedy owners hog it. Seemed like perfect timing too. As the owner or atleast someone higher up in management had arrived.

But ofcourse the wife made a face and splashed out the NOOO we don't want to make a scene and look cheap attitude !

That waitress probably had her passport handed over to her employer. So if she wants to keep her job, she better be quiet aight?

51 percent of the service charge goes directly to the Emirati owners. The other 49 percent is to keep the business going. Next time, try the manager himself. Maybe he can explain the rip-off

As to the first statement on the passport - you are correct.

As to the second statement - wrong. As DDS said, in free zones Emirati sponsorship is not required. In non-free zones where Emirati sponsorship - which gave them 51% "ownership" - is required, the general principal is to pay them an annual "fee".

I have heard of the rare occasion when the Emirati sponsor with 51% "ownership" decided that he didn't need a partner and took the business over. Mind you, these were small businesses. They would hardly think to do something like that with, say, FedEx. But with all the free zones that are available, there is very little sponsorship now, except those locals who sponsor individuals and small businesses that have been operating for years under their sponsorship. Prior to DIFC the only free zone around was Jebel Ali and you had to have offices there. Since there are so many companies registered with DIFC, and DIFC cannot accommodate them, i.e., office space, they are now allowed to set up offices outside of DIFC. I just recently became aware of the fact that Dubai Mercantile Exchange is recognized as a free zone.

There was a time when an Emirati could sponsor any number of people/businesses, but the government stopped that and put a cap on how many people/companies a local could sponsor. The establishment of free zones are putting an end to the need for a sponsor, which is a very good thing. Problem will be with the former sponsors in that they won't know where to find that income without having to get out of bed!!!!

I understand your point. But it isn't all wrong what I've said.

Forget the multinationals. I'm talking small businesses here. Think about businesses outside the freezones, like hotels, diners, restaurants, leisure and entertainment etc?

RobbyG wrote:I understand your point. But it isn't all wrong what I've said.

Forget the multinationals. I'm talking small businesses here. Think about businesses outside the freezones, like hotels, diners, restaurants, leisure and entertainment etc?

All of which you mention are multinational operations - they are owned by multinationals. If they were owned by locals, no sponsorship necessary. A hotel can hardly be considered "small business" - and a property outside the free zone needs sponsorship. The hotel has a sponsor and pays him a fee - somewhat like a retainer to a lawyer - a payment to cover certain work for a certain period of time, generally one year. A sponsor does not hold a position in the company, has no authority in the company, does not sign checks, does not sign off on any company documentation other than documentation that involves sponsorship. Sponsors are not only individuals but companies are as well.

RobbyG wrote:I understand your point. But it isn't all wrong what I've said.

Forget the multinationals. I'm talking small businesses here. Think about businesses outside the freezones, like hotels, diners, restaurants, leisure and entertainment etc?

RG your statement regarding business ownership are actually for the most part completely wrong, the norm here is a yearly fee as stated by BB.

Techincally, isnt the annual fee system illegal ? i think its called having a "sleeping partner"

sage & onion wrote:

RobbyG wrote:I understand your point. But it isn't all wrong what I've said.

Forget the multinationals. I'm talking small businesses here. Think about businesses outside the freezones, like hotels, diners, restaurants, leisure and entertainment etc?

RG your statement regarding business ownership are actually for the most part completely wrong, the norm here is a yearly fee as stated by BB.

Well thats what happens when you sit thousands of miles away and claim to be an internet expert.