CCPA Orders Barbeque Nation to Stop Service Charge; Calls It Unfair Trade Practice

The Central Consumer Protection Authority (CCPA) has directed Barbeque Nation Hospitality (BNHL) to immediately stop levying service charges at any of its outlets. This came following an investigation into a consumer grievance and a subsequent Delhi High Court ruling.

The document, dated on February 4, noted that the case began after a complaint filed with the National Consumer Helpline (NCH) in March 2025 alleged that Barbeque Nation had added a ₹335 service charge to a customer’s bill. The CCPA took suo motu cognisance of the matter, citing the High Court’s March 2025 judgment that upheld the regulator’s guidelines prohibiting mandatory service charges in restaurants.

According to the order, the restaurant initially assured the customer that the amount would be refunded during a future visit. However, after the complainant requested a direct refund through the NCH, BNHL refunded the full amount on 16 April 2025. The restaurant also submitted that it stopped levying service charges altogether after the High Court ruling on 28 March 2025.

The investigation concluded that although the charge applied in January 2025 was covered under an interim judicial order and therefore not illegal at the time, BNHL had subsequently complied with the final judgment and refunded.

The CCPA order also restates its 2022 guidelines, which prohibit restaurants from adding service charges automatically or by default, emphasising that such additions amount to unfair trade practice under the Consumer Protection Act, 2019.

The Delhi High Court, in its 2025 ruling, had held that service charges are voluntary and cannot be imposed mandatorily or coercively. Any default addition to the bill would violate consumer rights and mislead customers, the court had said.

Barbeque Nation is a casual dining chains in India. They currently own and operate around 200 outlets in India, 4 outlets in the UAE, 1 outlet in Malaysia and 1 outlet in Oman. In the first quarter of fiscal year 2026 (Q1FY26), it reported a total income of ₹298.91 crores. This represents a decrease of 2.2% compared to the fourth quarter of fiscal year 2025 (Q4FY25), where the total income was ₹305.70 crores.