If this letter to the editor only showed up in your newspaper today, you should call them and find out what is going on. It was in my newspaper a couple of days ago.

18% Service fee? that sounds strange, I would assume that was the tip included if it was a group of 6 or more. I would have pushed back if it wasnt part of the food/drink order and not the tip.

OB56, It may have been in there before today; I just read it when I got online this morning.

The only restaurant that I know of that has an automatic fee is Cafe Med.  Cafe Med automatically charges I think 15-20%, but that fee does go to the staff as tips.  I am wondering why the restaurant in question doesn't just raise their prices 18% and do away with the fee.

It is common practice to add an automatic gratuity, and I have no problem with that. But this extra fee goes directly to the business and often leaves the waitstaff out in the cold.

ghost-

I completely agree.  It seems the owner is trying to funnel tax free money into his/her pocket.

if it wasnt for tips..is it even legal? was it mentioned on the menu? if not I would think you wouldnt have to pay it.

Tips are only for the service you receive, bad service = no tip, good service= tip according to value of the service...it is not automatic 15%, gotta work baby !!!

That is why I posted this blog. I am hoping that someone will know the name of this place. As far as the tip goes, I am usually a generous tipper if it is warranted, but some places charge an automatic gratuity for large groups, who are known for tipping very low. Generally, it should be up to the patron how much to tip a waiter, I agree. But this is not even a tip; it is an underhanded extra fee for the privilege of eating at this place. I think truthhurts is correct. It seems like a way to get tax-free profit for the owner.

Wasn't this for a big family dinner?  it's not mentioned if this was an arranged dinner through the banquet manager or if they just made reservations for  a large party.  How many people were being served?

If it goes through the banquet people there is a "service fee" AND a gratuity.  In the past, when I worked banquets the fee was divided up between the servers and they in turn tipped out the bus staff.

I have never agreed that any part of the gratuity should go to the establishment on a regular table.    On a large family dinner, it's different.  People tend to sit and visit after a family meal and your tables are tied up and not generating any revenue.  Tables are pulled together and service is disrupted.

This business of not mentioning names puzzles me greatly.  Why is it OK to do a restaurant review either praising or panning an establishment but it's NOT ok to mention names in a post.?  That makes no sense at all.

That service fee wouldn't be tax-free to the restaurant owners. If the IRS ever caught on to it, then they'd require them to pay taxes on it, just like any other income the restaurant receives. Anyone can refuse to pay taxes, it will work for a while, but eventually the IRS will come and get their share. They'll also tack on interest and penalties while they're at it. You're much better paying those taxes as you go.