A “service fee” is not always a tip
A percentage added automatically to a restaurant bill can look like a gratuity, but the label matters. A service fee is a charge set by the restaurant; a tip is generally an extra amount the customer chooses to leave. So a menu can describe gratuity as optional while the bill still includes a separate service fee.
That distinction also affects where the money goes. Restaurants may distribute a service fee among staff or use it to help cover labor costs, but the policy varies. The charge alone does not tell you whether your server receives it directly—or whether it is shared with other workers.
Check before adding more
Look over the itemized bill for a line such as “service charge,” “service fee” or “hospitality fee,” and check whether tax is listed separately. If it is unclear whether the charge counts as a tip, ask how the restaurant handles it. That gives you a better basis for deciding whether to leave anything extra, rather than assuming the fee goes straight to the person serving you.
The practical surprise is that “gratuity optional” does not necessarily mean the final bill has no automatic percentage added. The receipt’s wording—and the restaurant’s explanation—are what clarify the difference.
