Haidilao – is this legal?

Is Haidilao’s “Discretionary” Service Charge Actually Mandatory?

If you’ve ever dined at Haidilao, a popular hot pot restaurant in London, you likely enjoyed the impressive culinary experience it offers. While the food itself was undeniably satisfying, a recent dining experience there has raised some eyebrows regarding their billing practices.

During my visit, I opted to use a special promotional offer designed for students, which gave a discount on the final bill. Alongside this, the restaurant included a 12.5% discretionary service charge. Naturally, I inquired whether these charges directly supported the hardworking staff. To my surprise, the waitress informed me that the service charge is retained by the company, not distributed to the staff as one might expect.

Because of this, I requested to have the service charge removed, only to be told that doing so would nullify my promotional discount. The discretionary service charge, it seemed, was not optional after all. Strangely, this condition was not clearly displayed or communicated.

This brings us to the main question: Is it legal to impose a mandatory service charge under the guise of it being ‘discretionary’ when tied to a promotion? If you’re planning a visit, you might want to keep this in mind.

Legalities aside, exercising caution and being fully informed of potential additional charges when opting for promotions may save you from unexpected expenses. Do share your thoughts or any similar experiences you’ve encountered.