Capping service fees: A new era for Hungary’s catering industry

The Hungarian Tourism Agency said government proposals on service fees and tips would strengthen the competitiveness of the catering sector in a statement issued on Tuesday.

Proposals on service fees and tips

The agency noted that the National Economy Ministry had recently proposed capping service fees at 15pc for private individuals and 20pc for corporate functions.

Hungarian Tourism Agency head László Könnyid said the higher cap on service fees for corporate functions would raise waitstaff’s remuneration and contribute to employee retention.

He added that the 15pc cap on service fees for private individuals could boost the competitive position of smaller, family-owned businesses.

A ministry proposal requiring financial institutions to make technical changes allowing guests to tip with their bank cards, while the government exempts tips from taxes, will improve employers’ cost optimisation, Konnyid said. He added that tips were an “important motivation” for waitstaff.

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