Hangzhou will ban the minimum charge at restaurants from December 1, when a new regulation on pricing supervision and management will be enacted.
A restaurant violating the regulation to set a minimum charge will receive a fine from 2,000 yuan (US$ 328.2) to 10,000 yuan.
Xihu Spring’s Nanshan Road outlet had removed its minimum charge for private rooms at lunch and night snack time. Revenues of each room fell from 2,000 yuan to 900 yuan to 1,200 yuan. However, the attendance rate rose by 50 percent after the removal, said Chen Hao, director of the admin office of the branch.
From December 1, the Nanshan Road branch will remove all the minimum charge, Chen added.
The regulation also bans price fraud such as untruthful commodity name, production place, scale, level, quality, price measurement, price or service on price tag and menus, officials with the municipal pricing bureau said.
Source: Hangzhou International Center