Impact of Service Charges on the Restaurant Businesses: Bangladesh Perspective

Abstract

Restaurant businesses are being very famous in today’s Bangladesh. They noticeably contribute to the economy of a region. Our study aimed to work on service charges, a core policy of some restaurants. Unofficially, we noticed that some restaurant-goers were dissatisfied with the policy of service charges, especially with the mandatory ones. Observing this incident, we were convinced to conduct an empirical study on the effect of service charges in restaurant businesses. We developed two questions to investigate. Our primary concern was about customers’ dissatisfaction and the later question was to know whether or not the restaurants would get more customers by canceling service charges. We took both qualitative and quantitative approaches and decided to collect primary data along with some secondary data. After collecting data, we analyzed the data and observed the results. For collecting data, we have made questionnaires to conduct surveys. We believe our study will be practically effective for many restaurants.