Is an 18% Service Charge a TIP?

Recently, while on vacation in Washington, D.C., I sat down at a restaurant and was instructed to order via a QR code—unless I preferred a physical menu, which I requested. I didn’t notice any mention of an 18% service charge on the menu, but I certainly noticed it when the check arrived. To make matters more confusing, a line for a suggested percentage tip was still printed at the bottom of the bill. Was this a mandatory gratuity for my server, or just a hidden price increase?

When I returned home to Texas, I ran into the same pesky 18% service charge after ordering a drink at a movie theater bar.

Driven by frustration, I looked into the legalities surrounding these charges. As it turns out, whether a service charge functions as a tip or simply defrays corporate labor costs is open to debate. Legally, businesses can apply mandatory fees as long as a footnote or notice is provided. But legal technicalities aside, this raises fundamental questions for every diner:

When you see a mandatory 18% service charge on your bill, do you consider that the tip? And if not, how much extra are you supposed to leave?

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