Service fees are increasingly common in the restaurant and service industries as shrinking margins are affecting their profitability. A service fee is a charge for a product or service, and many companies include them in the final bill, such as restaurants, banks, and hotels.

In the restaurant industry, service fees are often a percentage of the total bill and can be used to ensure staff receives gratuities. However, service fees are not the same as tips, as they do not necessarily go directly to the person who served you. The National Restaurant Association found that 15% of restaurants are charging service fees.

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