This article is from the source 'independent' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.independent.co.uk/news/business/news/pizza-express-drops-8-charge-on-staff-tips-10484825.html

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Pizza Express drops 8% charge on staff tips Pizza Express scraps policy of skimming cash from tips left for staff by card-paying customers
(about 2 hours later)
Pizza Express has dropped the 8 per cent charge they take from staff tips paid by credit or debit card. Pizza Express has scrapped its policy of skimming cash from tips left for staff by customers paying with a credit or debit card.
The restaurant chain said it was upgrading to a new automated system for distributing tips that it had been testing for some time. The u-turn was welcomed by campaigners and politicians who have been pushing for an end to the practice which was seeing Pizza Express taking an 8 per cent “admin fee” to process the tips not left in cash, first revealed by the Independent.
From 6th October, the 8% administration fee on tips made by electronic card payment will be removed. More info: http://t.co/EUQypKvWBB The company, which has 430 restaurants across the UK, said its 10,000 staff will receive 100 per cent of the tips from October 6 after an automated system was introduced which cuts costs to the business.
Richard Hodgson, CEO of PizzaExpress, said that payments made on card will now to be fully distributed among employees.  A group within the company has elected to give 30 per cent of card-based tips to cleaners, pizzaiolos and other kitchen staff, while the remaining 70 per cent goes to individual waiters. Pizza Express’s chief executive Richard Hodgson also called on the restaurant industry to improve transparency over their tipping practices after several chains including Cote, Bill’s and Las Iguanas were exposed for misleading customers.
"We have always been, and will continue to be, transparent about our tipping policies," Hodgson said. He 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.”
The decision comes after the Independent revealed last month that a number of chain restaurants were taking up to 10 per cent of waiters' tips to pay administration fees. The restaurant chain’s change of heart follows Giraffe’s decision to scrap its policy, where 10 per cent of tips on cards were taken by the company.
Ask Italian, Belgo, Bella Italia, Café Rouge, Giraffe (owned by Tesco), Las Iguanas, Prezzo, Spaghetti House, Strada and Zizzi all subtract admin fees. However, as revealed by the Independent, there are still several chains that continue to skim off cash which many believe should go to staff.
Pizza Express joins Carluccio’s, Chiquito, Frankie & Benny’s, Garfunkel’s and Wagamama, which hand 100 per cent of tips paid on card over to staff. Café Rouge, Bella Italia, Belgo, Prezzo, Strada, Ask Pizza and Zizzi all take between 10 and 8 per cent of tips left on cards, while other chains including Frankie & Benny’s, Chiquito and Wagamamas do not take an admin fee.
Unite the Union, which has led the charge on calling for chains to end the practice, welcomed the news and turned a planned protest at Pizza Express’s Baker Street branch last night into a celebration.
Regional officer Dave Turnbull said: “Unite welcomes the long overdue decision by Pizza Express to scrap its unfair tax on tips. With our membership we will be closely monitoring the implementation of the new policy to ensure it is both fair and transparent.”
Following the widespread misuse of tips and service charge, business secretary Sajid Javid has launched a consultation into how the system can be changed. Yesterday he welcomed Pizza Express’s move.
The new policy will see 30 per cent of card based tips shared among cleaners and kitchen staff, with the remaining 70 per cent going to the individual waiter who served the table.