AT THE END of January 2012, the Ministry of Commerce issued a decision to abolish the service charge imposed by restaurants in addition to the prices of items on the menu, and the ministry gave a two months’ notice to the food industry providers to remove the extra fees from the menus.
Certainly this decision is in the interest of the consumer and in line with global customs, which leaves the customers to assess the level of service themselves, and reward the waiter to the rate of 10% to 20% maximum. Some countries including the United States and the United Arab Emirates consider these added fees to be illegal, while other countries such as the United Kingdom recognize the service charges, but ensure the right of the consumer of non-payment or reducing it in the event of dissatisfaction with service. But the current situation in Saudi Arabia makes us wonder: Have we benefited from the cancellation of the service charges in restaurants?
Saudi newspapers’ review of the overall situation since the launching of the decision to cancel the service charge after the deadline of 60 days indicates that the restaurants not only canceled service charges, which were estimated previously in the range of 15%, but actually doubled the value of those charges within the new menu prices.
A week before the deadline, specifically on March 22, Asharq Alawsat newspaper published a statement by Nasser Atawaim, president of the Consumer Protection Association about the “near the release of a list of penalties and fines on restaurants and cafes in Saudi Arabia that have not committed to implementing the decision of the Ministry of Commerce and Industry regarding the cancellation of the service charges imposed.” He further explained that the ministry has asked the municipalities to keep copies of price lists before the implementation of the new law, and to be vigilant of raising prices after the deadline.
After the deadline Asharq Alawsat newspaper published on April 12, a story with the title: “Trade: Leaves the consumer the choice to accept restaurant menu prices” stating that the Consumer Protection Association has denied any move to impose prices on the providers of such services, leaving the option for the consumer as there are many alternatives!
In fact, people soon realized that the decision to cancel service charges led to the increase in the price menus in excess of the value of service charges. An investigation conducted by Al-Madinah newspaper. In the report, which was published on April 24, under the title: “The increase offsets the cancellation of the service charges from menus.. And citizens are demanding price control,” the report also pointed out that the deletion of service charges have raised the prices of meals in the city of Jeddah by 25 percent.
In the past month I made a number of observations in several restaurants, where I saw my favorite restaurant offer a new menu poor in quality and free from images and there are no changes in terms of meals other than the prices which have increased by as much as 25%. I also visited another restaurant that canceled the service charges while reducing the number of employees, thus providing slow service by surly waiters and it took almost an hour for our meals to be served. In yet another restaurant they replaced high quality butter provided with appetizers with lower quality butter and added more water and sugar to fresh juices. A world-famous restaurant adopted by creating new dishes at a higher cost.
The bottom line is, there is no doubt that the decision of the Ministry of Commerce not to impose any additional charges to the prices of food and beverages was intended to protect the consumer, but the way of dealing with the resolution reflected negatively on the consumer, increased restaurant prices and made service worse, all of which happen before the eyes of the Consumer Protection Association that seems to stand idly by after confirmation by its chief executive recently that they only have twenty employees most of them collaborators, and that the budget allocated to it does not exceed five million riyals!
Saudi restaurants: Hot new menus, flaming prices
Saudi restaurants: Hot new menus, flaming prices
Pakistan moves to end week-long transport strike disrupting goods movement nationwide
- Federal delegation sent to Karachi as talks intensify with transporters
- Strike over axle loads and tolls has hit supply chains and economic activity
ISLAMABAD: Pakistan’s federal government on Monday stepped up efforts to end an over week-long strike by goods transporters that has disrupted the movement of cargo across the country, directing a high-level delegation to hold urgent negotiations with transport unions in Karachi, according to an information ministry statement.
The strike, now in its eighth day, has slowed the flow of goods between ports, industrial centers and markets, raising concerns over supply chains in an economy heavily reliant on road transport for domestic trade and exports. Trucking is the backbone of Pakistan’s logistics system, moving food, fuel, raw materials and manufactured goods, and prolonged disruptions can quickly translate into higher costs and shortages.
Transport unions have been protesting against stricter enforcement of axle-load limits — legal caps on how much weight trucks can carry — as well as increases in toll taxes and what they describe as heavy-handed policing on highways and motorways.
The action comes at a sensitive time for Pakistan, which is trying to stabilize its economy under an International Monetary Fund-backed reform program that places emphasis on controlling inflation and improving fiscal discipline.
“Prolonged strikes cause losses to all stakeholders, particularly those associated with the transport sector,” Federal Minister for Communications Abdul Aleem Khan said while chairing a meeting with representatives of the Pakistan Goods Transport Alliance, according to the statement.
Transporters briefed the government on their concerns, including axle-load regulations, toll charges and enforcement practices.
The communications minister said the government was committed to resolving all legitimate issues “through dialogue and consultation” and confirmed that a five-member committee formed earlier had been tasked with finding a solution. He directed a senior delegation to immediately travel to Karachi to continue negotiations and seek a timely and amicable resolution.
The government also pledged to address issues related to driving licenses, road safety and accident prevention on a priority basis, while stressing that axle-load regulations were designed to protect national highways and improve long-term safety.
Representatives of the Pakistan Goods Transport Alliance expressed satisfaction over the progress of talks and assured the government of their cooperation, reaffirming their preference for constructive engagement, the statement said.
Authorities have warned that a prolonged transport shutdown could deepen economic disruptions, particularly by affecting port operations, industrial supply chains and the distribution of essential goods.
