Forum Topic

Restaurant 'service' charges

Spurred on by the fact that the Govt is planning to tighten up on restaurant owners who pay less than the minimum wage and top-up staff salaries from tips and service charges, I asked our server last night at PACIFIC BAR & GRILL on Goldhawk Rd. whether they got all of the 12.5% service charge which is automatically added to the bill.Answer - NO !  They get a small proportion of this 12.5%, the rest is kept by the Company.So, we asked for the 12.5% to be removed and left a tip in cash.I'd be interested to know how many other restaurants which you know of are using the 'service charge' to top-up their profits rather than reward their staff !

Andrew Broadbent ● 6174d7 Comments

Balan's in Chiswick prints "your gratuity goes to your waiter" at the bottom of their bill.However, I was told that the company retains "some" of the tip in order to redistribute to the kitchen and bar staff.That's fine in principle, but then why print "your gratuity goes to your waiter" at the bottom of the bill when it's not (entirely) true ?

Andrew Broadbent ● 6162d

Went to the Princess Victoria on Uxbridge Rd on Saturday.  A huge wine list and truly outstanding food.They don't automatically add to the bill....top marks !!

Andrew Broadbent ● 6164d

RichardIf you're worried about the tax situation, here's an interesting perspective.In 2006, Grant Thornton estimated that at least 32 of the UK's 54 billionaires paid no tax at all.Why is it important that the low paid are seen to pay their tax in full when for those at the top of the tree it appears optional ?

Andrew Broadbent ● 6170d

I'm confused.  Would some kind soul explain the differences between service charge, tip, cover charge and staff gratuities please?  Thanks.

Gerry Tan ● 6170d

"I wouldn't rely on waiting staff to tell you the whole story."Maybe not, but I seriously object to a company putting a service charge on the bill (the 'service charge' tag implies that it will go to the staff, IMHO), without me asking and then (as some admit that they do) keeping some or all of the money.BTW, Giraffe add 12.5%, but all of it (according the waiter on Saturday) goes to the staff.I'll happily leave a cash tip, it's up to the waiters to declare it as taxable income - not my issue.  Anyway, the levels of tax fraud involved can't be that great, especially when compared to the amount of tax that non-doms get away without paying.

Andrew Broadbent ● 6170d

"However I guess that by doing that, although we gave the person who served us the meals a tip, none of this would have gone to the people doing the cooking/washing up!"Very true.  Some restaurants have a deliberate policy to share cash tips and service charges amongst all staff.  If they do so, they are obliged by law to deduct income tax and national insurance.  Or they can organise a 'tronc' system with avoids national insurance but has its own overheads. Meanwhile it seems that some waiting staff are only too ready to subvert the restaurant's policy by suggesting they won't benefit unless you give them cash, or to seek cash payments with the intention of not declaring it as income (tax fraud).  I wouldn't rely on waiting staff to tell you the whole story.

Richard Jennings ● 6173d

Last month a group of us went to Tootsies in Holland Park, when the bill was bought to us the waiter quietly mentioned to me that if we paid the service charge quoted he would not receive it.  So we asked for the service charge to be removed and then gave the waiter a seperate payment.However I guess that by doing that, although we gave the person who served us the meals a tip, none of this would have gone to the people doing the cooking/washing up!

Carol Burge ● 6173d