Service charge
Example: A neighborhood gastropub replaces tipping with a posted 20% service charge that the menu and the website both explain, splitting the pooled dollars between servers and line cooks so the kitchen finally shares in service-side revenue.
a fixed % the restaurant adds to the check
A percentage (commonly 18–22%) the restaurant adds to the guest check automatically, in lieu of or alongside tipping. Treated as restaurant revenue under DC and most state labor law; distributed to FOH and BOH per a posted policy at the operator's discretion.
Why it matters
As DC's Initiative 82 phases out tipped-minimum-wage, service charges have become the cleanest compensation model for kitchen retention — back-of-house cooks finally get a measurable share of service-side dollars they previously didn't see. The customer pays roughly the same as under tipping; the operator's labor accounting gets simpler; the kitchen sees the lift first.
Frequently asked
What is service charge?
Service charge is a percentage (commonly 18–22%) the restaurant adds to the guest check automatically, in lieu of or alongside tipping. Treated as restaurant revenue under DC and most state labor law; distributed to FOH and BOH per a posted policy at the operator's discretion.
Why does service charge matter for a restaurant?
As DC's Initiative 82 phases out tipped-minimum-wage, service charges have become the cleanest compensation model for kitchen retention — back-of-house cooks finally get a measurable share of service-side dollars they previously didn't see. The customer pays roughly the same as under tipping; the operator's labor accounting gets simpler; the kitchen sees the lift first.
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