A recent incident at Connaught Place’s Darzi Bar & Kitchen has sparked controversy after a dispute over service tax escalated into a physical altercation between a diner and the general manager. The incident, captured in a viral video, shows the two engaged in a fistfight and exchanging verbal insults.
Devinder Singh, the general manager of the establishment, explained the restaurant’s policy regarding service tax: “We waive off service charge upon request if customers are not using another app for additional discounts. We cannot afford to lose money by offering an extra ₹300 discount on a bill that already has a ₹1,200 discount.”
In the competitive restaurant industry, many restaurateurs view service charges as essential for maintaining profitability. Akhil Malik, director of QDs, emphasized the importance of service charges in offsetting costs incurred through third-party platforms used to attract customers, which charge commissions.
However, diners like Alok Shukla, a software engineer from Gurugram, argue that service charges should be discretionary. “The cumulative taxes and service fees are so high that any discounts we might receive from third-party apps are often negated. It’s my right to choose,” he stated.
Pawan Soni, a food blogger, supports this viewpoint, advocating for transparency in pricing within the food industry: “Restaurants should display all-inclusive charges, akin to Maximum Retail Price (MRP), to ensure clarity for consumers.”
The incident underscores ongoing debates about pricing transparency and consumer rights in dining establishments, highlighting the complexities of balancing profitability with customer expectations in a competitive market.