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UK Restaurants Prepare for Tipping Law: Ping Pong Boosts Wages, Unions Protest

Ping Pong boosts wages, but Unite union slams the move. National campaigns planned as restaurants adapt to new tipping rules.

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1 min read
In the image we can see there are food items kept on the plate and the plate is kept on the plate....
In the image we can see there are food items kept on the plate and the plate is kept on the plate. There is a menu card kept on the table and its written ¨Bliss Cafe¨. There are salt pepper bottles and sauce and ketchup bottles kept on the table. Behind there are sauce and ketchup bottles kept on the table and there are banners kept on the ground. There is a wheel of a vehicle.

UK Restaurants Prepare for Tipping Law: Ping Pong Boosts Wages, Unions Protest

The UK's restaurant industry is grappling with the impending legislation on news, with businesses expressing cost concerns amidst high inflation and subdued consumer spending. Meanwhile, workers and unions are pushing for fairer distribution of service charges.

Ping Pong, a London restaurant chain owned by AJT Dimsum, has preemptively increased staff wages by 19% to £12.44 per hour, £1 above the upcoming legal minimum. This move comes as the government anticipates the new legislation will inject an estimated £200 million more into workers' earnings. However, the Unite union has condemned this wage adjustment, describing it as 'a complete slap in the face' for workers.

In response to the new legislation, Ping Pong has also introduced a 15% 'brand' fee instead of the previous 12.5% service charge, effectively replacing card news. Patrons can still leave a cash tip, but the shift towards cashless transactions may impede this practice. The new fee is being trialed and will be finalized in June. Restaurant teams can also earn additional bonuses of £1 or £2 per hour for meeting sales targets.

The Deutscher Mittelstands-Bund (DMB) and the Unite union are planning national campaigns for fairer tipping distribution before the law comes into effect in July. Currently, 90% of the previous service charge went to staff, but the new fee does not guarantee this distribution.

As the new tipping legislation approaches, restaurants are taking steps to comply while managing increased costs. Workers and unions are advocating for fairer distribution of service charges, with campaigns planned before the law takes effect in July. The ultimate impact on workers' earnings and consumer spending remains to be seen.

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