If there is a flat 18% service charge, why not just add 18% to the base prices and get rid of the service charge? Or does a restaurant have to 'hide' these costs as an added percentage in order to make their prices seem reasonable?
You hit the nail on the head here. Some places "hide" this charge better than others. I once had another patron at a place let me know that my check already included tip so I wouldn't double tip, as my check just had a total on it. It wasn't itemized at all. That seemed pretty dishonest to me.
It was the standard practice of all the servers there to make sure the circle went through the item showing the included gratuity for parties of six or more.
Apparently, as a result, they'd get double tipped for large parties about 50% of the time.
Also, as I said, the "they" in this situation was another patron, not a worker at the restaurant.
edit: hmmm, it seems the latter isn't even close to true!