The Central Consumer Protection Authority has issued a directive to Barbeque Nation Hospitality Ltd to cease levying a service charge at its restaurants, following a consumer complaint and subsequent refund of ₹335, as per LiveMint report.
The complaint was lodged in March 2025 on the National Consumer Helpline. The consumer sought a refund of a ₹335 service fee that had been added to the bill in addition to GST.
Barbeque Nation initially offered to adjust the amount against a future bill but later provided a full refund in April 2025. The refund was recorded on the helpline portal and the grievance was closed.
The order reaffirms the Delhi high court ruling that a service charge or tip must be voluntary and cannot be imposed automatically.
Under the Consumer Protection Act 2019, mandatory collection is classified as an unfair trade practice. The CCPA’s powers under sections 20 and 21 were used to issue the specific direction for immediate discontinuation of the practice.
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Barbeque Nation operates around 200 outlets in India and six overseas locations. The company reported consolidated revenue of ₹1,233 crore in FY25 with a net loss of ₹27.79 crore, compared with revenue of ₹1,254.5 crore and a net loss of ₹13.41 crore in FY24.
In a separate case, the CCPA imposed a ₹50,000 penalty on China Gate Restaurant Private Limited for similar violations.
National Consumer Helpline performance
The helpline, established in August 2005, handles over 60,000 complaints annually. Between April and December 2025, it resolved 67,265 grievances and secured refunds totalling approximately ₹45 crore.
As of February 11, 2026, at 9:28 AM, United Foodbrands share price on NSE was trading at ₹264.52 up by 1.68% from the previous closing price.
The CCPA’s order requires Barbeque Nation to stop any mandatory service charge, reinforces existing legal precedents, and demonstrates active enforcement of consumer protection norms in the restaurant sector.
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Published on: Feb 11, 2026, 11:21 AM IST
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