Restaurant's Service Fee Policy Sparks Outrage Among Diners
A Mediterranean eatery in Washington, D.C., is facing backlash for adding a mandatory 20 percent service charge that it states is not a tip.
A Mediterranean restaurant in Washington, D.C., has drawn criticism from customers for implementing a policy that adds a mandatory 20 percent service charge to all bills.
Alara, which describes itself as a "culinary escape highlighting cuisine from Turkey, Greece, and the Levant region," has come under fire after a patron shared a photo of the menu's footnote on Reddit. The note stated: "A 20 percent service charge will be added to all guest checks and will be used to cover our increasing operational costs. Service fees are not tips."
The customer who posted the information expressed their dissatisfaction, writing, "I saw this and walked right back out. No way I'm dining here. If you hadn't noticed this before ordering, would you say something?"
The post generated numerous comments from other users who shared similar sentiments. One commenter questioned the distinction between a service fee and a tip, asking, "What the hell is a service fee if not a tip?"
Another expressed confusion over the restaurant's approach, stating, "I really don't understand what the point of having a percent service charge that's 'not a tip' instead of just embedding the cost in the price of the item. I assume they had to print new menus to include the service charge language, why not just update your pricing? Legitimately curious."
Other reactions included descriptions of the policy as "absolutely outrageous" and "complete bulls**t. Nothing but greed."
This incident occurs amid a broader trend of consumer frustration with tipping culture. A survey earlier this year indicated that 78 percent of Americans believe tipping culture has become "ridiculous." The same survey found that nearly half of respondents have reduced their gratuities in 2026 due to increasing financial pressure.
Retail analyst Neil Saunders commented on these findings in June, noting that consumers are increasingly annoyed by both the amount of expected tips and the expanding number of situations where tips are requested.