Hotel and Restaurant Service Charge, Who's the Rightful Beneficiary
April 7, 2011 9:03am CST
Service charge are normally included in hotel and restaurant's bills and once it's billed, i don't give tips anymore to the waiters as I believed that it goes to them. Some hotels give 100% service charge to all employees and divided equally; some do not give at all; and some give very little amount like my previous employer, a well known 5 star international brand hotel with 280 rooms, gives USD10.00 per month to all staff and to the senior managers, nobody knows as it was very confidential. With my current employer, a 4 star well known international brand hotel, with only 86 rooms share a portion of the service charge. The rank and file staff get approx USD100.00 to USD150.00 per month; the junior managers get approx USD250.00 to USD350.00 per month; the senior managers get approx USD1200.00 to USD1500.00 per month and the top executive gets approx USD3500.00 to USD5000.00 per month. With this distribution system the top executive pockets the biggest portion and the staff who are directly serving the guests get the least. I am wondering if the service charge are billed to the guest to be paid to the top executive? Is there any standard rule governing this matter or just simply management discretion? Do you think it's fair that the top executive who draws the biggest salary is the major beneficiary of the service charge you are paying? Could be in other countries have different system?