Automatic gratuity: Here’s why some Myrtle Beach restaurants may add a tip for you
When a restaurant adds an automatic gratuity, it means that the restaurant has charged a serving fee. Typically, a gratuity fee may be 18% of the total bill.
Alicia Thompson, CEO of the Myrtle Beach Hospitality Association, said that while automatic gratuity isn’t a growing trend in Myrtle Beach, there are various reasons why a restaurant may do so.
“The primary reason is just to protect the servers and make sure that they’re being compensated appropriately,” said Thompson.
Automatic gratuity doesn’t get added on every single bill, it sometimes depends on the size of the party. For example, Margaritaville, an American restaurant located at Broadway at the Beach, adds on an automatic gratuity for parties of more than 8.
Here are a few of the restaurants in Myrtle Beach that have automatic gratuity policies:
- Soho Steakhouse and Seafood Sushi Bar
- Jerusalem Mediterranean Bar and Grill
- Margaritaville Restaurant
- Crepe Creation Cafe
Is it legal in South Carolina?
Yes, it’s legal. The IRS counts a gratuity charge as a service fee rather than a tip. However, who the tip goes to is a different question. The IRS states that an employer may be able to keep a portion of a service charge.
This story was originally published August 9, 2022 at 5:00 AM.