CONSUMER AWARENESS AND PERCEPTION OF SERVICE CHARGES IN RESTAURANTS: AN EMPIRICAL STUDY

DOI: https://doi.org/10.56815/IRJAHS.v(2026)i1.104-113

Abstract

Service charges imposed by restaurants have become an important consumer protection issue in India, particularly following the guidelines issued by the Central Consumer Protection Authority (CCPA). Despite increasing public debate, empirical evidence on consumer awareness and perception of service charges remains limited. This study examines consumer awareness and perception regarding service charges in restaurants using primary data collected from 107 valid respondents through a structured questionnaire. The data were analysed using descriptive statistical tools, namely frequency and percentage analysis. The findings reveal that while consumers are generally aware of service charges, awareness of consumer rights and the CCPA Guidelines remains relatively low. Respondents strongly favoured transparent billing practices, prior disclosure of service charges, and voluntary payment based on informed consent. The study further found that consumers support clearer differentiation between GST and service charges and favour stronger regulatory oversight to ensure fair billing practices. The study concludes that consumer acceptance of service charges depends primarily on transparency, informed consent, and effective consumer awareness. The findings provide useful insights for policymakers, consumer protection authorities, and restaurant operators in promoting fair and transparent service charge practices.