PIZZA EXPRESS is not alone in charging staff an admin fee for tips they receive through credit cards.
Though Unite has cast the spotlight firmly on the 430-strong chain, the practice is “more widespread than we would like”, said the union’s food and drink sector lead, Dave Turnbull.
Research by the Independent has found that 10 restaurant groups use similar tactics. Those contacted argued that the 8% to 10% charge covers the processing costs from the electronic processing pool (known as “tronc”).
Turnbull said this was a “red herring” because human resources teams already manage the systems used. Employers also enjoy a National Insurance tax break on tips from credit and debit cards.
The Restaurant Group – which counts Frankie & Benny’s and Garfunkel’s amongst its high street brands – was commended for its approach, which sees all card-based tips end up in the hands of staff.