Restaurant staff to keep 100 per cent of tips as business secretary expected to change law
The law will mean restaurants are obliged to hand over service charges to Restaurant Staff in full.
The business secretary Kwasi Kwarteng is expected to announce a change in the law this week that will entitle staff to 100 per cent of their service charge.
At present, legislation prohibits restaurants from holding onto cash tips, but when a tip is given over card, it is at the restaurant’s discretion as to how and where that money is spent.
Kwarteng’s new bill looks to change that, meaning that 1.7 million hospitality workers will receive the service charge in full, whether a customer gives it in cash or card.
Speaking to the Standard, a government spokesperson said: “We are doing everything we can to back hospitality staff as the sector recovers.
“Workers should get the tips they deserve, and customers should have reassurance that their money is rewarding staff for their hard work and good service. Further announcements on this key issue will be made shortly.”
Currently, some restaurants don’t give individual servers 100 per cent of the service charge, preferring to divide it between the entire teams, including the kitchen staff, bartenders and maître d’. However, less scrupulous operators keep the charges for the restaurant or for themselves, leaving staff out of pocket.
Asma Khan, the restaurateur behind Covent Garden’s Darjeeling Express, told the Standard she supported the bill: “For management to take a cut from service charges is deceptive — if all the money does not go to the staff, it should also say ‘management charges’ on the bill.
“Hospitality does not have a good track record for self regulation — it’s unfortunate that it needed legislation to ensure the staff get all of their tips.”
“I can categorically say from the day we opened our restaurant group I have never seen or handled a single tip. When it’s card tips, we actually allow [staff] to remove the money from the till so that they can use it there [and then].”
However, Handling opined a note of caution for the proposed system, noting that: “When you talk about tips and service charge, they are very different.
“Tips are what someone gives to an employee for doing something over and above their job, making someone really happy.
“Service charge is a different thing — that’s for the whole operation, such as the building. Think about the service charge for an apartment, that pays for a lot of things, it doesn’t just pay for the concierge sitting on the desk. So I think [in a restaurant], it pays for the service of the reception staff, of the people making the bookings, the reservations team, of everyone. It gets shared out to a wider field. Tips get shared between the front of house and the kitchen, but service charge gets shared though the whole of the group making the operation work.”
The Standard has reached out to Kwarteng for clarification over what the new law will control, and whether restaurants will be left to divide a split of the service charge or if it will all go to individual staff looking after a table. If the latter, there may be difficulties in understanding how tips are supposed to be divided when one or more waiter has served a table.
Hospitality does not have a good track record for self regulation — it’s unfortunate that it needed legislation to ensure the staff get all of their tips
The news comes as the hospitality industry continues to struggle through a staffing crisis, partly as a result of the pandemic and partly a fall-out from Brexit. Hospitality vacancies have risen by 60 per cent in the past year, with, in many cases, wages offered at an historic high.
Jon Spiteri, who is a partner in new Farringdon opening the Sessions Arts Club, said that in his restaurant tips were handled by a seperate company, with Sessions taking “a tiny amount out for administration.”
He added: “It’s a good idea as the industry needs to change if it’s to survive and out most valued assets are our staff. Anything that benefits them without destroying the hospitality industry must be a good thing.”
The original version of this article was first published on The Evening Standard
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RESTAURANTS IN BIRMINGHAM: 15 of The Best
QUIRKY RESTAURANTS IN BIRMINGHAM
Home to one of the most exciting food scenes in the country, Birmingham is no stranger to a few unique eats. Across the city you’ll find plenty of weird and wonderful destinations fronting cool interiors and mind-blowing menus, from trailblazing fine dining to bizarre brunch spots. Read on as we round up a few of our favourite quirky restaurants in Birmingham.
The Lost & Found Birmingham
Head over to Bennetts Hill where this quirky Birmingham restaurant is bringing you floral motifs, big eats and fruity cocktails. Try them for dinner if you’re in the mood for a moreish selection of international mains, or head over at brunchtime for some classic boozy breakfasts.
The Birmingham Stable
Dubbing itself a cathedral to cider, The Stable is a cool and casual dining spot with a few quirky twists. Tuck into their delicious range of pizzas washed down with fresh brews and enjoy neon signage and live music nights.
The Botanist, Birmingham
One for lovers of all things floral, The Botanist is a beautiful and unique restaurant in Birmingham. Feast on a mix of British and European classics, including their signature Hanging Kebabs, washed down with a whole host of vibrant cocktails.
Gaucho Birmingham
From the futuristic design through to those legendary steaks; Gaucho is a top choice if you fancy something a little different for your next meal out. Expect sophisticated interiors, with textures and tones inspired by Argentina’s forests and an extensive wine selection at this quirky Birmingham restaurant.
The Alchemist Birmingham – Brindleyplace
Whether you’re heading to their Brindleyplace or Colmore Row outpost, The Alchemist is a must if you’re looking for quirky restaurants in Birmingham. Join them for some of the most theatrical cocktails in the city, alongside a menu of unique eats.
8 Birmingham
Looking for Birmingham most unique eatery? About8 is the tasting menu experience you’ll want to try. Inspired by the number eight, the Centenary Square restaurant is the place to head if you’re hoping for something very much out of the ordinary.
The Karczma
A warm and friendly restaurant in Birmingham, The Karczma has made a name for itself on account of its cool and cosy decor and authentic Polish eats. The ultimate spot to hole up on a cold evening, you’ll find hearty plates of grub and snuggly furs to wrap yourself in.
Henman & Cooper Bar And Rooftop
A cool and quirky rooftop restaurant in Birmingham, Henman & Cooper promises more than a bit of booze and few views. Head up to their Colmore Row perch for a tasty selection of British and European small plates to pair with your cocktails.
Eat Vietnam
A cool and quirky restaurant in Stirchley, Eat Vietnam is a little eatery with a big reputation. Serving up some of the most delicious food in the area, their dinky venue is a must for authentic plates to have in or takeaway.
The Ivy Temple Row
If it’s good enough for the famous, it’s good enough fir us. Celebrity haunt The Ivy have planted a brasserie in Birmingham and it comes complete with their signature interiors. Head over to this quirky quirky Birmingham restaurant for stunning plates of British fare and fancy high teas.
Sky By The Water
Head over to Resorts World and you’ll find one of Birmingham’s most weird and wonderful restaurants. Sat on top of the complex, this gorgeous rooftop spot promises a stunning selection of menus and some of the best views in the city.
Tattu Birmingham
This gorgeous bar and restaurant is one of the biggest underground haunts in Brum, specialising in contemporary Chinese cuisine. Swing by and sip on qinger mint smoke mojitos while grazing on foie gras gyoza and decadent chocolate pagodas.
670 Grams
One of Birmingham’s most unique dining experience, 670 Grams is a bold eatery from chef Kray Treadwell. The Michelin-starred restaurant offers a tongue-in-cheek menu of ‘common food’ made fancy – think veal popcorn, curry-cured salmon and Yorkshire Tea with smoked bread.
The original version of this article was first published on Designmynight.com
We are a hospitality and catering recruitment company. We can support you to find a new role or the staff you need to grow your business.
