Restaurants and Cafes in Kyrgyzstan Review Prices After Cancellation of Service Charge

Сергей Гармаш Economy / Exclusive
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Restaurants and cafes in Kyrgyzstan are reviewing prices after the cancellation of the service charge

A bill has been passed in Kyrgyzstan that abolishes the additional service charge in restaurants and cafes. This decision was initiated in response to numerous complaints from consumers outraged by the 15% service charge that was added to the cost of dishes. This was reported on the air by Adilet Jumabekov, a leading specialist in the Ministry of Economy on antimonopoly policy and pricing.

According to Jumabekov, the president's administration instructed to prepare amendments to the current legislation to resolve the situation. During the discussion of the project, the appeals and proposals from restaurant owners and entrepreneurs were taken into account.

Ruslan Kazakov, head of the consumer rights protection department at the Antimonopoly Regulation Service, noted that taking into account the opinion of the business community, the deadlines for the introduction of new rules were postponed so that entrepreneurs could adapt their prices. The new regulation will come into effect on January 1, 2026.

According to the current Civil Code, an offer is used in the public catering sector, where the menu serves as the main contract. Visitors have the opportunity to familiarize themselves with the assortment and prices, and then either agree to the terms by placing an order or refuse to visit.

According to Cabinet of Ministers Resolution No. 560, prices for goods are set independently by entrepreneurs, which confirms the independence of the restaurant business in pricing.

Previously, many establishments added a service charge to the cost of dishes, which varied from 5% to 20%. This caused dissatisfaction among consumers due to a lack of transparency in the formation of the final cost. Now, all expenses, including the salaries of waiters and cooks, are included in the base cost of the dish.

Earlier, the service charge was interpreted as compensation for the labor of employees; however, now all costs are taken into account in the price, which complies with the norms of the current rules.

Although the state does not regulate prices for dishes in cafes and restaurants, cases of charging an additional percentage on the indicated price are considered violations and may lead to administrative measures.

Altynai Kachibekova, executive director of the HoReCa Club Association, noted that businesses are experiencing a decline in sales volumes. She emphasized that a price increase by one establishment does not necessarily mean a price increase in others, as this remains at the discretion of each entrepreneur.

In the HoReCa sector, there are many expenses, and they can be significant. Some establishments, tracking costs for certain dishes like manti, strive to maintain high service quality and appropriate pricing. Others may cut back on service, which sometimes affects the quality of dishes or leads to the substitution of ingredients with cheaper alternatives.

Kachibekova also added that price formation includes not only the cost of ingredients but also packaging, service level, and the atmosphere of the establishment. Visitors pay not only for food but also for the comfortable conditions of their stay.

At the moment, the service charge has been abolished, and employment contracts are now being concluded with waiters. This transitional period implies that previously, expenses for personnel, including taxes and the motivation system, were also taken into account.
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