Scotland’s leading chef has criticised a fast-growing restaurant chain for keeping the service charge it adds to customers’ bills rather than let waiting staff take it home as tips.
Côte, which has recently opened in Glasgow, has been accused of retaining the 12.5 per cent charge that is automatically added to bills and using it to top up minimum wage-level salaries instead of handing it directly to the waiting staff who provided the service.
The 72-branch chain has defended the practice, saying that it allows them to pay staff an hourly rate of between £7.50 and £8 an hour, above the minimum wage of £6.50 for those over 21.
Andrew Fairlie, patron of the two Michelin-star Restaurant Andrew Fairlie at Gleneagles, said the chain’s policy would discourage young people who rely on tips to boost their incomes from joining the restaurant trade.
Mr Fairlie, who allows his staff to keep their tips, said: “We moan about youngsters not wanting to join our industry, but with employers like this I don’t blame them. For the company to wear the fact that they pay their staff just over the minimum wage like a badge of honour is shocking.
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“We’re trying to attract people into the restaurant trade, so to say that we will pay you just above the minimum wage that the law dictates — what the hell does that say about our industry?”
An unnamed Côte staff member told the Evening Standard in London: “We are told by management that we don’t get to keep the service charge because we get paid more than the minimum wage, so we should be grateful, but most of us would prefer earning the minimum wage and taking home our tips.”
Neil Forbes, owner of Café St Honoré, in Edinburgh, said: “It’s a real shame that in 2015 such a massive chain is pulling the wool over people’s eyes.”
Sajid Javid, the UK business secretary, said he did not believe such a system was fair and added that government would be examining the issue. “While it would not be appropriate to comment on this individual case, as far as I’m concerned, tips belong to the staff,” he said.
A spokesman for GMB Scotland, the trade union representing 60,000 workers, said: “If a customer pays the bill and there’s a 12.5 per cent service charge, the customer believes that the charge will be paid to the employee who provided them with that service.
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“Even though the firm claims the charge is being distributed in kind, it’s totally wrong.”
A spokesman for Côte said: “The individual restaurant manager allocates the service charge across all restaurant level employees, as we believe it is important to recognise those preparing the food or cleaning the kitchen, in addition to the front of house staff.
“This service charge element of compensation is always paid in addition to a base amount which is at least equal to the national minimum wage. It is paid through the payroll, net of taxes and NI. As such, the company does not recognise the service charge as revenues in its accounts.”
Chains including Pizza Express have also been criticised for charging an 8 per cent admin fee on all tips that are paid by debit or credit card. The Giraffe and Zizzi chains have also been criticised for the practice.