Generator fee on the bill: why restaurants may be fined

2 February 21:24

Cafes, bars, and restaurants that add a separate fee for using a generator to their bills without informing customers in advance risk being fined. The fine can be up to 30% of the order value.

This was reported by the HoReCa Poster POS automation service, citing an explanation from the State Consumer Protection Service, according to "Komersant Ukrainian".

What is the violation?

According to Poster POS, including a separate line item such as “service – generator” on the bill without the customer’s consent may be considered a violation of consumer protection legislation.

This refers to the imposition of an additional paid service or misleading the consumer if the visitor was not notified in advance of such a payment.

The State Service for Food Safety and Consumer Protection reminds that the law “On Protection of Consumer Rights” obliges businesses to provide complete and understandable information about the cost of services before they are received.

How establishments are advised to act

To avoid violations, catering establishments are advised to:

  • inform customers in advance if generator costs are included in the price of food or beverages;
  • not add a separate line to the bill if the customer has not ordered any additional services.

Poster POS notes that generator operating costs — fuel, electricity, maintenance — are usually considered restaurant operating expenses and can be included in the total price of the product.

What is the penalty?

In case of violation, the establishment may be fined:

  • up to 30% of the cost of goods or services sold,
  • but not less than five non-taxable minimum incomes of citizens — at least 85 hryvnia.

The decision on the fine is made by the State Consumer Protection Service based on the results of an inspection or consideration of consumer complaints.

Discussion in the restaurant industry

The issue of paying for generators is actively discussed among restaurateurs against the backdrop of energy restrictions and power outages. Some establishments are trying to compensate for the increase in costs, while others fear negative customer reactions and fines from regulatory authorities.

Poster POS is a Ukrainian restaurant automation company that develops tablet-based accounting and management software for the HoReCa segment.

Марина Максенко
Editor

Reading now