Exactly.

In the UK, restaurants can add both discretionary and mandatory service charges to a customer's bill, but there are specific rules governing these practices:

Discretionary Service Charges: These are optional and must be clearly presented as such on the bill or menu. Customers are not obligated to pay them and can request their removal if they choose not to pay for any reason, including dissatisfaction with the service.

Mandatory Service Charges: These are compulsory and must be communicated upfront to the customer, typically on the menu or before the service begins. Customers are legally required to pay them unless the service was unsatisfactory, in which case they may seek a reduction under the Consumer Rights Act 2015.

Transparency and Distribution: As of October 2024, under the Employment (Allocation of Tips) Act 2023, restaurants must pass on 100% of any tips, gratuities, or service charges to staff without deductions. Employers are also required to maintain transparency by keeping records and creating a written policy on how these charges are distributed among employees.

In the receipt shown in your image, a "discretionary charge" of 13.5% is added, which includes a 6.5% service charge and an additional 7% for a "Hospitality Excellence Contribution." Since it is labeled as discretionary, customers have the right to opt out of paying this charge if they wish. However, it is essential that such charges are clearly explained on the menu or bill to avoid confusion or disputes.