How to Handle the ‘Service Charge’ Debate in a Large Group

The 12.5% Question

In London and most UK cities, a 12.5% discretionary service charge is automatically added to the bill. In a group of 10, on a £400 bill, that’s £50.

Scenario A: The Service Was Fine

Etiquette: You pay it. If you try to remove it because you are “on a budget,” you are effectively asking your friends to cover your share of the staff’s wages. It is social suicide.

Scenario B: The Service Was Terrible

Etiquette: The group must decide collectively. One person cannot unilaterally decide to remove the tip. “Guys, the service was pretty slow. Are we happy to pay the full service charge, or shall we ask to take it off and leave a smaller cash tip?” If the group agrees, the “Lead Payer” speaks to the waiter.

Scenario C: The “I Only Have Cash” Friend

Friend A throws £20 on the table for their £18 meal and leaves. They have left £2 for a tip (11%). If the service charge is 12.5%, they have underpaid. The person paying by card is now subsidizing their tip. The Fix: Always calculate your share plus 12.5%. £18 x 1.125 = £20.25. Friend A owes £20.25.

Summary

Service charges are part of the cost of dining out. Factor them into your budget before you order, not after the bill arrives.