Barbeque Nation can't charge service fee at its restaurants anymore
What's the story
The Central Consumer Protection Authority (CCPA) has directed Barbeque Nation Hospitality Ltd to stop charging a service fee at its restaurants. The order comes after the CCPA took suo motu cognizance of a complaint filed on the National Consumer Helpline (NCH) over the restaurant's practice of adding a service charge, in addition to central and state Goods and Services Tax (GST).
Complaint
Restaurant offered to adjust amount against future bill
The complaint, filed in March 2025, sought a refund of ₹335 service fee. The CCPA's order noted that the restaurant had initially offered to adjust the amount against a future bill but later issued a full refund directly to the consumer in April 2025 after escalation through the helpline. The refund was acknowledged on the NCH portal, after which the grievance was formally closed.
Company profile
About Barbeque Nation
Founded in 2006, Barbeque Nation is a casual dining chain with roughly 200 outlets in India and six in the UAE, Malaysia, and Oman. The firm reported consolidated revenue of ₹1,233 crore in FY25 against a net loss of ₹27.79 crore. This was slightly lower than the revenue of ₹1,254.5 crore and net loss of ₹13.41 crore reported for FY24.
Regulatory action
Similar action against China Gate Restaurant
In December 2025, the CCPA had also penalized China Gate Restaurant Private Limited ₹50,000 for imposing mandatory service charges in violation of consumer protection norms, and a Delhi High Court ruling from March 2025. Consumer groups have welcomed these actions as strong signals to the restaurant industry that mandatory service charges will not be tolerated. Legal experts say that even though Barbeque Nation no longer levies the charge, this order is significant.
Legal implications
Investigation found no continuing violation by company
The CCPA's order in the Barbeque Nation case reiterates the Delhi HC's ruling that a service charge/tip is a voluntary payment and can't imposed automatically or by default on restaurant bills. Such compulsory collection amounts to an unfair trade practice under the Consumer Protection Act, 2019. The investigation found no continuing violation by the firm after the HC ruling, but CCPA issued a specific direction for immediate discontinuation of this practice.