Restaurants may have to tell customers where tips go

Restaurants could be forced to display on their menus how much of their service charge is given to waiting staff, under proposals being considered by the Government.

In an effort to improve transparency, operators would be obliged to tell diners whether their service charge is given to waiters or collected by the restaurant as an “administration charge”, according to a report in The Times.

The proposal comes after government earlier this year pledged to close a loophole that allows restaurants and hotels to use service charges to top up pay rates below the minimum wage, currently £5.73 an hour, following a long-running campaign by trade unions.

Ministers are expected to publish the proposals next week – although this has not been confirmed - with the consultation the result of negotiations between the industry and the Department for Business, Enterprise & Regulatory Reform.

Bob Cotton, chief executive of the British Hospitality Association, has said while there should be more transparency, restaurant operators should keep the right to decide what to do with tips.

Japanese noodle chain Wagamama, pre-empted the Government move in July, because it feared staff would lose out due to the negative publicity generated by the trade union campaigns.

Last month, three of the country’s leading chain restaurateurs accused the Government of “punishing the many for the crimes of a few” by introducing new legislation on tips.

Speaking at an H-Talk event in London, the men behind Yo! Sushi, Lock Fyne and La Tasca warned that legislation would make the situation worse for all.

Read more news on tips and tipping here >>

Government legislation on tips is misguided, say operators >>

Wagamama gives customers tipping information on menus >>

Mixed response as topping up wages with tips is axed >>

By Kerstin Kühn

E-mail your comments to Kerstin Kühn here.

Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs