Blake,
Since you do want to learn as much as you can about business in Jamaica, there is a good article written by a tax attorney in the Observer and published about a year ago - here is the link:
http://www.jamaicaobserver.com/busin...erence_9461924
A couple key points are 1) yes, it is somewhat redundant for a restaurant to charge the service fee when they could have simply raised the menu prices by the same factor and 2) it is NOT a tip, it is a service charge, not a "good service charge". You pay it just the same way as if the item cost that much more.
There is no "double dipping" - the restaurant is liable to pay the same taxes on the service charge as they do on the food costs, as it is simply an addition to the food cost. There are no taxes paid by the restaurant on any tip you would leave, that is a different thing all together - a tip is not "paying the staff" but a personal reward that you give the server for their prompt service.
So your "food equation" should actually read "food + service charge (which includes overhead/salaries and paying the staff) + a Tip (rewarding your server for good service).
