Restaurants urged to make tipping policy more transparent

A campaign launched by the Department for Business, Innovation and Skills (BIS) is urging restaurants to make their tipping policy more transparent as research shows that nearly two thirds of diners don't know where the money they leave for staff goes

Despite many restaurants, hotels and pubs adopting the British Hospitality Association's voluntary Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges , 61 per cent of consumers say they are still clueless about who receives the tips they leave.

Employment Relations Minister Lord Young said: “Consumers should never feel afraid to ask ‘Who Gets the Tip?’ – whether it’s at the hairdressers, a hotel or restaurant. It’s their money and they have a right to know what happens to it. Businesses also have a responsibility to provide clear information to their customers.

“Our research shows this makes good business sense as consumers are more likely to re-visit restaurants where tipping policies are displayed.”

Repeat trade

The Who Gets the Tip? campaign, launched today, will encourage more customers to ask where their money is going as research by BIS, showed that 91 per cent of diners leave a tip, yet only 21 per cent of people ask where the money goes.

Of those surveyed, 66 per cent said they were more likely to go back to a business that provided tipping information and the figure rose to 73 per cent if they knew that staff were allowed to keep the majority of the tip.

Chef and restaurateur Antony Worrall Thompson added: “The issue of tipping is a big concern for all in the restaurant industry and the ‘Who Gets the Tip?’ campaign is an excellent way of highlighting it”.

The campaign follows the introduction of legislation last October which makes it illegal for businesses to use tips to bring staff pay up to minimum wage levels.