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Haidilao – is this legal?

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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.

2 thoughts on “Haidilao – is this legal?”

  1. Insightful Thoughts on Service Charges at Haidilao

    As a London resident and a frequent diner, I appreciate your insights regarding the service charge at Haidilao. Your experience highlights an important issue about transparency in the restaurant industry, particularly when it comes to additional charges. Here are a few points I’d like to add to the discussion:

    • Understanding “Discretionary” Charges: The term “discretionary” can often be misleading. Just because something is labeled as such does not mean it is optional, especially if it’s tied to promotional offers.
    • Legal Implications: It’s worth noting that the legality of mandatory service charges masquerading as discretionary ones can vary. Businesses should ideally be transparent about how these charges work to avoid confusion and potential legal issues.
    • Customer Awareness: I encourage diners to be vigilant and ask questions about any charges that are not clearly outlined in menus or at checkout. Being informed can help mitigate unpleasant surprises.
    • Alternative Dining Options: If one is looking for more straightforward pricing, exploring restaurants where service charges are either included in the menu price or clearly communicated can enhance the dining experience.

    Has anyone else experienced similar situations? It would be interesting to hear more about how different establishments handle service charges

    Reply

  2. Insights on Discretionary Service Charges in London Restaurants

    As a London resident who frequents a variety of dining establishments, I’ve noticed that the practice of including discretionary or service charges can sometimes be quite ambiguous for diners. While such charges are often presented as optional, many restaurants, including some high-profile ones like Haidilao, may imply or even enforce them as mandatory, especially when tied to promotional deals or specific offers.

    Here are some points worth considering and sharing:

    • Transparency is key: Clear communication about whether service charges are voluntary or mandatory should be provided upfront, ideally in the menu or at the point of ordering. Lack of transparency can lead to confusion and dissatisfaction.
    • Legal framework: Under UK consumer law, any charges that are not clearly communicated or are imposed without consent could be considered unfair or potentially illegal. It’s advisable to check the terms of promotional offers carefully and question any ambiguous charges.
    • Impact on customers: When a service charge is retained by the business rather than staff, it can undermine trust. Customers should have the option to contribute directly to staff if they wish, especially if they believe service was exceptional.
    • Advocating for diners: Restaurants could improve customer relations by explicitly stating their policy on discretionary charges, especially when tied to discounts or promotions.
    Reply

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