The head of one of Britain’s largest restaurant companies has pledged that all staff will receive the government’s new “living wage” by early next year as he hit out at rivals that short-changed their employees by holding on to tips.
Danny Breithaupt, chief executive of the Restaurant Group, which owns Frankie & Benny’s and Chiquito, said the “bulk” of his workforce already received more than £7.20 an hour minimum, but that by next April everyone would be paid above that level.
“This will be good for the industry. It is important that people see this as a career choice because that means we have less staff turnover and that helps reduce costs,” Mr Breithaupt aIS.
The Restaurant Group boss was scathing about revelations that the Côte brasserie chain had been pocketing service charges intended for staff to bolster its own bottom line and insisted that all his staff received all the money left for them by customers. “I have a very strong view on this as I’ve waited tables and worked in minimum wage jobs myself. I think it is right that our staff keep the tips our customers leave as that is their money, not ours,” he said.
Mr Breithaupt’s comments came as Restaurant Group reported a 10 per cent rise in pre-tax profits for the first half to £36.9 million on revenues up 8 per cent to £334 million.
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The company operates 251 Frankie & Benny’s restaurants, and said it would open a further 13 to 15 sites this year, while its 79 Chiquito restaurants are set to grow to nearly 90 outlets by the end of the year.
Shares in Restaurant Group closed down 2.8 per cent yesterday at 659½p, valuing the company at £1.3 billion.