To think that this restaurant chain is just circumventing the law and short changing its’ staff

[DotAndCarryOne2]

Read this morning that the new Employment (Allocation of Tips) Act legislation is coming into force in July, meaning it will be illegal to withhold tips from staff. From July all tips received must be evenly distributed among the staff.

As a result, ahead of the legislation, a restaurant chain in London has banned tips and replaced a 12% service charge with what they’re calling a ‘branding charge’ which amounts to a 15% service charge added to customer bills. It’s given its’ staff a pay rise matching what they would have received with the restaurants’ previous service charge or ‘tip distribution policy’ - based on a 90% distribution of tips.

The 15% charge will be voluntary during what the restaurant have described as a ‘consultation period’ with its’ customers, but is likely to be made compulsory after the legislation is introduced. The restaurant has stated that the charge will go towards overheads they will incur as a result of the new legislation.

I can’t see how this can be viewed as anything other than trying to circumvent the new law. It will also result in staff paying more tax because effectively what were previously ‘tips’ are now included in their wages. AIBU to think that this is not only cheeky but greedy ?

I agree that they are being cheeky. What if business is quiet?

I just wouldn’t spend my money there at all

The Restaurant is PingPong.

Apparently the ‘brand charge’ is optional still. So… why would anyone pay it?

TBH the ‘optional’ (read: compulsory) service charge thing is completely out of hand. Just increase the cost by 15% and say no tips.

Often when I order a drink at a bar now they ask for service charge on the card reader. As if it’s not bad enough paying £10 for a glass of crap wine, they want an extra £1.50 for what… pouring it into a glass for me?

???

Technically staff have to pay tax on tips so that point is moot but this is just an excuse to charge more for nothing.

That's my plan, and I like PingPong. I also like to tip (and cash tips will still be allowed, apparently) but I'm not supporting this by taking my custom there.

I was miffed by the statement that the charge was to meet overheads incurred as a result of the legislation. I took that to mean that instead of using tips to cover costs - which is not on anyway - they now have to pay it to staff.

Vote with your feet.

I don’t like the “discretionary (or not) 12%” being added to my bill. Places need to charge, the correct cost for making & serving the food, not rely on tips.

I tip 10% in restaurants, if service has been good. Never tipped in a bar (I think trying to add a charge on to someone pouring you a drink, is grabby nonesense)

Then again, I live in The North

I’d love it if more places banned tipping and just charged what the service costs.

If the extra charge this restaurant is using is optional, then even better.

It is right for people to be taxed on what they earn.

I'm a tipper, and I tip well. But it is my choice to, and I'm absolutely not in favour of charges (service, branding or otherwise) being added to a bill under the guise of something you can remove. I think it plays on people's ignorance, embarrassment and naivety.

If overheads are increasing then the cost of goods and services also has to increase. No issue with that. But make it transparent by increasing the price of items on the menu.

100% it is so they can continue to retain the service charge instead of distributing it to staff as they should.

Prime example of why the hospitality industry is going down the drain. Covid can't be blamed for everything, anymore.

I don't get much pleasure from being out in my city anymore.
The bar queues are mental.
Everything needs to be reserved a month in advance if you'd quite fancy a seat with your bottle of wine.
The music is always too loud or there's football on the telly.
Food is often rocketed to your table 5 minutes after you've ordered/you've finished each course. Clearly want you gone so they can get fresh bums in seats and charge them another service charge.

It's just not worth half the hassle to me thee days. Customer service is a thing of the past in so many places.

I always tip (have worked in hospitality for 25 years!) but always in cash and always remove the service charge as no matter how lovely the restaurant is 9 times out of 10 the staff never see it.

Overheads are increasing, but so are staff outgoing and waitressing is a thankless job a lot of the time. Anyone working with the general public deserve tips, especially when there’s booze involved.

They’re saying it won’t be optional after the legislation is introduced in July. At that point, they will decide whether to make the fee compulsory, increase product prices or implement a mixture of both. They’re banning card based tipping, but, for now at least, not cash tips. The previous service charge was 12%, of which the staff were allocated 90%. The pay rise they have received is based on that, despite the new charge being 15%,, so to my mind they’re still short changing their staff and this is just a way to get around the law. The Unite union agrees. They say they expect a lot more businesses will adopt a similar policy and it’s planning to highlight what’s happening in a campaign for fair tips ahead of the legislation.

Why not just up the menu prices by 15%? What's the point of these extra charges? They would put me off a restaurant as they come across as dishonest. The price should be the price.

I think raising prices and paying staff properly is FAR better than having tips subsidise low pay.

I don’t think they’re circumventing the law, they’re moving away from tipping.

I don’t like the price increase coming as an after ordering percentage charge - they should increase prices so it’s easier for people to calculate their costs, but in general I approve.

Hospitality is already on its knees so anything that pisses off your customers seems a mad idea to me.

I have never heard of PingPong, clearly not reached my corner of the world yet, but this doesn't make me want to try it if I come across a branch

Just increase the prices if necessary and pay your staff properly. No tips, no service charge, easy for everyone. I hate the idea of tipping it feels like you are superior to the person serving you and they need your financial help, it's archaic and belongs in the Victorian era not the 21st century.

We need a new Consumer Act that bans most additional charges such as so- called drip pricing. Or a simple thing- if you try it, the meal automatically is free.

I much prefer the French "service compris" approach, where the tip is part of the price. I'd still leave a small tip if the service was really good.

I used to travel to the US for work a lot, and found the tipping culture there very, very stressful. 20% is apparently the acceptable base level, according to NY friends. Same thing with sales taxes, which are added at the till, rather than included in the label price. So you don't know what you're actually going to pay until it's all been put through the till. Madness!