One of the main problems that has caused discussions regarding public catering facilities in Azerbaijan recently is the non-transparent nature of bills presented in restaurants. In particular, additional amounts reflected in the bill that customers did not order can lead to justified dissatisfaction. Such cases are no longer coincidental; on the contrary, they have become a widespread and normalized practice in a number of restaurants.
Another point that causes the most dissatisfaction is payments added to the bill under the name of “service charge”. In many cases, this amount varies between 3-20 percent of the total bill, and no prior information is given to the customer about it. Consequently, the consumer only encounters an additional payment when the bill is presented, which is accompanied by serious questions and dissatisfaction.
The causes of the aforementioned situation, its legal assessment from the perspective of consumer rights, and ways to prevent the problem are also of particular interest to society.
Speaking to Modern.az on the topic, former Milli Majlis deputy Rufat Guliyev called on customers to visit only cafes and restaurants they know and are familiar with:
“First of all, I should note that any customer should first request the menu in a restaurant. They should look at the menu and familiarize themselves with the prices. Today, menus are available everywhere, from the cheapest eateries to the most expensive restaurants.
Before placing an order, the customer should also ask a specific question: will a service charge be applied for these orders, and if so, how much will it be? Frankly, I have not heard of a specific requirement in legislation regarding the mandatory addition of a service charge to the bill. If a service charge is added to the entire bill, it should also be subject to tax obligations,” the economist stated.
According to R. Guliyev, the main reason for price increases is the inflation observed in food and agricultural products. Inflation directly affects prices. Cafes and restaurants, however, sometimes resort to alternative methods to avoid openly raising prices. A few years ago, I raised this issue regarding price games in large supermarkets: one price is shown at the counter, but a different price appears at the checkout. Unfortunately, these situations still exist.”
The economist also noted that for this reason, consumers should always be vigilant and definitely complain in such cases:
“Whether it's a restaurant or a supermarket – you need to call the manager and ask: why is the price like this, where does the difference come from? In addition, businesses have official websites and platforms. It is possible to express dissatisfaction there, and these reviews are not deleted; they remain public. I remember, when I was a member of parliament, during the discussion of the Law on Tourism, I suggested that all cafes and eateries should openly and transparently share their menus, prices, and grammage online so that people are fully informed in advance. Currently, I don't know exactly to what extent these rules are followed, but many self-respecting restaurants apply this at least partially.”
The former deputy also clarified the issue of prices being shown on the menu in some places, but not the grammage:
“For example, you order kebab, but the weight of the meat in grams is not specified. However, in international practice, this information must be clearly stated.
In a market economy, excessive pressure on entrepreneurs and sales agents can also create certain problems. I have always held the position that state bodies should not directly intervene in the market. However, in cases related to quality or clear violations, a complaint must definitely be filed. For this, hotlines are available, and relevant departments of the Ministry of Economy, as well as the State Antimonopoly and Consumer Market Control Agency, are active. In conclusion, I believe that people should be a little more vigilant and a little more principled,” R. Guliyev noted.
However, Eyyub Huseynov, Chairman of the Free Consumers Union, stated in his comments to our website that for the past 10 years, the concepts of “service charge” and "service fee" have continued to spread rapidly to all restaurants.
He also emphasized that throughout the world, a service charge is a voluntary payment made by the consumer to the restaurant owner or directly to the person providing the service:
“Based on my personal observation, I can say that I have seen the highest service charge in Canada, which is approximately 10 percent and is entirely voluntary, with the customer also giving this amount directly to the waiter.
However, in Azerbaijan, many business entities present the concept of “service charge” in a completely different form. When discussing this topic with restaurant owners, they state that in some cases, consumers request special cabinets, music, video displays, multimedia equipment, as well as live music or singer services. At such times, restaurants say they are forced to include the cost of these additional equipment and services in the cash receipt.”
The Chairman of AIB added that, in reality, this is not about a classic service charge, but about additional services provided:
“It is normal for the prices of the aforementioned services to be determined in advance and clearly shown on the cash receipt. The problem is that all these payments are generalized and presented under the name of “service charge,” and transparency is completely lost.
One of the most serious problems is the financial agreements between singers and restaurant owners, which remain obscure to the consumer. No one knows what agreement exists between the singer and the restaurant owner, how much is paid, and what portion of this amount is collected from the customer. As a result, the consumer is forced to pay an expense they are unaware of and have not agreed to.”
According to E. Huseynov, although these situations are not directly prohibited by legislation, in practice, this approach seriously harms the development of tourism in Azerbaijan:
“Unfortunately, over time, more absurd situations emerge: “I don't like your face, I won't let you in,” “you're sitting facing the sea, you have to pay an extra 20 manats,” “you have to pay for the lady smoking shisha at another table,” and so on. Such cases are becoming widespread.
All this indicates that specific decisions must be made by state bodies overseeing this sector, and clear and mandatory rules must be established for restaurants. Furthermore, the concept of a service charge must be precisely defined, and the prices of additional services must be disclosed transparently to prevent violations of consumer rights.”
