A well-known local restaurant chain has announced an increase in service fees during the Chinese New Year, sparking discontent among netizens who believe such practices unfairly burden customers.
Based on an image shared on Threads, a notice placed at the restaurant’s counter informed customers that service fees would increase from 10% to 15% on January 29 and 30, coinciding with the first two days of the Chinese New Year.
This increase is separate from the standard 6% Sales and Service Tax (SST).
The announcement drew heavy criticism, with many questioning why restaurants should impose additional charges on customers rather than covering the costs of extra wages from their profits.
Some netizens proposed alternative solutions, suggesting that businesses unable to cope with the increased holiday demand should consider closing temporarily or finding other ways to sustain profitability without raising service fees.
‘This is not normal’
Online users expressed frustration, arguing that busier periods should naturally result in higher revenue, which could be used to compensate staff.
One user commented, “So that means 15% service charges + 6% SST = 21%. Never mind, I will choose another option”
Another added, “[…] If you don’t want to pay double or triple pay to your staff, you should close your shop during CNY”
This incident has reignited the ongoing debate about service fees in the food and beverage industry, with calls for fairer practices that don’t shift additional costs onto consumers.
On the flip side, someone commented that the adjustment is justifiable, as business owners must absorb double labor costs and are unable to close during holidays due to mall policy.
Domestic Trade Ministry to investigate fee hike
In response to the backlash, the Ministry of Domestic Trade and Cost of Living (KPDNHEP) has stepped in, stating that restaurants should not raise service fees during the Chinese New Year period.
The ministry’s enforcement unit will summon the restaurant in question to hear their explanation for the price hike.
The enforcement unit has taken action to track the parties involved and will summon the restaurant for discussions to determine the reason behind the increase or change in service fees,” the ministry reportedly said in a statement.
The ministry added that it is closely monitoring restaurants and social media platforms for complaints related to this issue.
Legal action against unfair price hikes
The Ministry of Domestic Trade and Cost of Living also reminded businesses that any unreasonable price hikes or profiteering could result in legal action under the Price Control and Anti-Profiteering Act 2011.
Under the act, companies found guilty of profiteering can be fined up to RM500,000 for a first offense and up to RM1 million for repeat offenses.
Individuals face fines of up to RM100,000 or a maximum jail term of three years, or both, for a first offense.
Repeat offenders face fines of up to RM250,000 or a maximum jail term of five years, or both.
While the ministry has encouraged consumers to report such cases, it noted that no official complaints regarding the service fee increase have been received so far.
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