The introduction of a service charge by restaurant owners is going to harm their business

Blog post by Marica Micallef

The Facebook page “Finanzi” boasts of posts showing the 759 million that the government has given to businesses that have been hit by the imposed lockdowns of the Covid-19.

I am in no way against this monetary aid. On the contrary, I am sure there are many others who are running on minimal capital and suffering in silence and who should have been assisted too!  My questions and worries in this matter lie elsewhere, which I will tackle soon.

After my blog “Are the local authorities pulling the leg of the restaurant owners with the new timeframe?” was published, Times of Malta published an article entitled “Part-time restaurants will not cover costs”[1] whereby owners confirmed my worries in my blog. Whereas I used my common sense to conclude what Times of Malta concluded, I was happy to read the viewpoints of restaurant owners which validated my points.

However, it seems that restaurant owners are not on the right path of attracting customers and increasing their profit, since they are currently looking into implementing a service charge of around 10 to 15%. Is this the way they want to make profit?[2] Don’t they realise that there are many people out there who are currently, more than ever, suffering financially? In such times where many people are running low on money, is this a wise move? Will this lead them to eventually, close down? Today we have witnessed the permanent closing down of five local language schools. Who’s next? What are the consequences of the closing down of businesses? Will there be a ripple effect on the economy? Is this the start of a downward spiral?


[1] https://timesofmalta.com/articles/view/part-time-restaurants-will-not-cover-costs.867928

[2] https://lovinmalta.com/news/10-service-charge-maltese-restaurants-mulling-over-introducing-discretionary-fee-after-reopening/

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