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Goverment launches investigation into tips

The governments business secretary has announced that he will be launching an investigation into tipping after reports have surfaced that greedy restaurant chains are pocketing a high proportion of tips to cover ‘staff administrative costs’.

Currently there is a voluntary code of practice regarding the distribution of tips, this was launched in 2009 and is overseen by the British Hospitality Association. The investigation will hopefully lead to laws that cap the percentage of tips that a restaurant can withhold from staff, or ban them from being withheld at all.

Most restaurant chains use a ‘tronc’ system where tips are collected up and distributed evenly through both waiting and kitchen staff. Quite a large proportion of the restaurant chains currently charge an administration fee for managing the tronc system – Pizza Express and Zizzi’s withhold 8% whilst Café Rouge, Prezzo and Strada withhold 10%. The fairest of the large restaurant chains are Giraffe, Carluccios and Jamie Oliver’s , currently they do not hold back anything to pay for administration fees meaning staff get 100% of tips given.

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