Pizza Express scraps 8% admin fee on staff tips

By Sophie Witts contact

- Last updated on GMT

Pizza Express scraps 8% admin fee on staff tips

Related tags: Employment

Pizza Express has buckled to ongoing public pressure and announced that it will no longer deduct an eight per cent administration fee from staff tips paid on credit card. 

The move follows a media frenzy around restaurant tipping practices, with brands including Las Iguanas, Bella Italia and Cafe Rouge facing scrutiny over their policies.

From 6 October a new automated system will be used to distribute tips across 10,000 employees at the 430-strong pizza chain.

The group said the system, which has been in development for the last six months, will ensure tips made electronically will now be fully distributed among employees as agreed by the company’s Tronc committee. 

This means that 30 per cent of card-based tips will be passed to cleaners, pizzaiolos and other kitchen staff; with the remaining 70 per cent going to individual waiting staff.

Richard Hodgson, CEO of PizzaExpress said: “We have always been, and will continue to be, transparent about our tipping policies. We also agree with calls for greater clarity across the industry in order to ensure that staff are given a fair deal, and to enable customers to make an informed choice when it comes to tipping.”

Hodgson added that he wanted people to view Pizza Express as a company that valued its employees.

“I’m committed to ensuring that we continue to work on improving the image of our sector, and to ensure we appeal to talented, ambitious people with the right mix of skills,” he said.

“We are playing our part by investing heavily in apprenticeships and the creation of 2,500 new jobs over the next few years; and we welcome the Government’s decision on the Living Wage we will be adopting in full.”

The Government has launched an investigation​ in to what it calls an 'abuse of tipping' within the sector, and is calling for recommendations on how it can increase transparency and limit the amount employers are able to deduct.

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