Pizza Express has scrapped its policy of skimming cash from tips left for staff by customers paying with a credit or debit card.
The u-turn was welcomed by campaigners and politicians who have been pushing for an end to the practice which was seeing Pizza Express taking an 8 per cent “admin fee” to process the tips not left in cash, first revealed by the Independent.
The company, which has 430 restaurants across the UK, said its 10,000 staff will receive 100 per cent of the tips from October 6 after an automated system was introduced which cuts costs to the business.
Pizza Express’s chief executive Richard Hodgson also called on the restaurant industry to improve transparency over their tipping practices after several chains including Cote, Bill’s and Las Iguanas were exposed for misleading customers.
He said: “We have always been, and will continue to be, transparent about our tipping policies. We also agree with calls for greater clarity across the industry in order to ensure that staff are given a fair deal, and to enable customers to make an informed choice when it comes to tipping.”
The restaurant chain’s change of heart follows Giraffe’s decision to scrap its policy, where 10 per cent of tips on cards were taken by the company.
However, as revealed by the Independent, there are still several chains that continue to skim off cash which many believe should go to staff.
Café Rouge, Bella Italia, Belgo, Prezzo, Strada, Ask Pizza and Zizzi all take between 10 and 8 per cent of tips left on cards, while other chains including Frankie & Benny’s, Chiquito and Wagamamas do not take an admin fee.
Unite the Union, which has led the charge on calling for chains to end the practice, welcomed the news and turned a planned protest at Pizza Express’s Baker Street branch last night into a celebration.
Regional officer Dave Turnbull said: “Unite welcomes the long overdue decision by Pizza Express to scrap its unfair tax on tips. With our membership we will be closely monitoring the implementation of the new policy to ensure it is both fair and transparent.”
Following the widespread misuse of tips and service charge, business secretary Sajid Javid has launched a consultation into how the system can be changed. Yesterday he welcomed Pizza Express’s move.
The new policy will see 30 per cent of card based tips shared among cleaners and kitchen staff, with the remaining 70 per cent going to the individual waiter who served the table.
