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Mexican-style Wahaca is latest food chain to be accused of unfair tipping policy Mexican-style Wahaca is latest food chain to be accused of unfair tipping policy
(about 4 hours later)
First it was Pizza Express, then Las Iguanas, Côte and Jamie’s Italian. Now Mexican street-food chain Wahaca stands accused of taking staff tips.First it was Pizza Express, then Las Iguanas, Côte and Jamie’s Italian. Now Mexican street-food chain Wahaca stands accused of taking staff tips.
At the restaurant chain, founded by former MasterChef winner Thomasina Miers, staff are required to hand over 3.3% of card sales and 0.075% of cash sales at the end of every shift, regardless of how much money they have made on tips. One waiter said that, because the levy was charged on sales and not tips, this meant he was losing more than 50% of his tips every week. He said he would rather pay into the pot himself than have the company control the system. Another waiter interviewed by the Observer said he was effectively being asked “to pay rent” to work at Wahaca.At the restaurant chain, founded by former MasterChef winner Thomasina Miers, staff are required to hand over 3.3% of card sales and 0.075% of cash sales at the end of every shift, regardless of how much money they have made on tips. One waiter said that, because the levy was charged on sales and not tips, this meant he was losing more than 50% of his tips every week. He said he would rather pay into the pot himself than have the company control the system. Another waiter interviewed by the Observer said he was effectively being asked “to pay rent” to work at Wahaca.
The Mexican street-food chain has strongly defended its position, saying that 100% of the levy goes into the “tronc” fund which is used to distribute waiters’ tips to other staff, such as kitchen and bar workers. No money is kept by the company.The Mexican street-food chain has strongly defended its position, saying that 100% of the levy goes into the “tronc” fund which is used to distribute waiters’ tips to other staff, such as kitchen and bar workers. No money is kept by the company.
“The person who cleans the dishes is as important as the general manager and the waiters and waitresses,” said Miers. “Our customers don’t want to pay a service charge, so what we have done over the last eight years is come up with what we think is the fairest way to make sure everyone takes home the best money.”“The person who cleans the dishes is as important as the general manager and the waiters and waitresses,” said Miers. “Our customers don’t want to pay a service charge, so what we have done over the last eight years is come up with what we think is the fairest way to make sure everyone takes home the best money.”
While Wahaca is unlike other high-street chains who were pocketing a slice of tips left by customers, its policy and that of others who also charge a sales levy highlights the inconsistent nature of pay in the restaurant sector. Wahaca is the latest in a line of restaurants to be criticised by staff for a tipping policy based on sales generated rather than gratuities received. In August, the Observer highlighted the tipping practices at Las Iguanas, a chain serving Latin American food at 41 branches in the UK. Like Wahaca, it takes a percentage of the table sales that waiting staff generate from their tips, but in the case of Las Iguanas the money is put towards a “staff incentive and reward scheme”. Earlier this month the chain announced it will drop the policy and replace it with one that better rewards its waiting staff, and Pizza Express has also reversed its policy.While Wahaca is unlike other high-street chains who were pocketing a slice of tips left by customers, its policy and that of others who also charge a sales levy highlights the inconsistent nature of pay in the restaurant sector. Wahaca is the latest in a line of restaurants to be criticised by staff for a tipping policy based on sales generated rather than gratuities received. In August, the Observer highlighted the tipping practices at Las Iguanas, a chain serving Latin American food at 41 branches in the UK. Like Wahaca, it takes a percentage of the table sales that waiting staff generate from their tips, but in the case of Las Iguanas the money is put towards a “staff incentive and reward scheme”. Earlier this month the chain announced it will drop the policy and replace it with one that better rewards its waiting staff, and Pizza Express has also reversed its policy.
Last week it emerged that Jamie Oliver’s chain, Jamie’s Italian, requires its waiting staff to pay a 2% levy from table sales they generate on each shift. Like Wahaca, the chain distributes the money to other staff.Last week it emerged that Jamie Oliver’s chain, Jamie’s Italian, requires its waiting staff to pay a 2% levy from table sales they generate on each shift. Like Wahaca, the chain distributes the money to other staff.
The Wahaca staff who contacted the Observer said they do not object to sharing gratuities with kitchen and bar staff but felt it is the company’s responsibility, rather than theirs, to make sure backroom staff are paid properly.The Wahaca staff who contacted the Observer said they do not object to sharing gratuities with kitchen and bar staff but felt it is the company’s responsibility, rather than theirs, to make sure backroom staff are paid properly.
“The most I have ever made in tips is £150, and that was a double shift that started at 11am and finished around midnight,” said one waiter. “My sales, on the other hand, were over £2,000. So they took £80 of my tips and I went home with £70. I have never worked in a restaurant where they did this.”“The most I have ever made in tips is £150, and that was a double shift that started at 11am and finished around midnight,” said one waiter. “My sales, on the other hand, were over £2,000. So they took £80 of my tips and I went home with £70. I have never worked in a restaurant where they did this.”
Wahaca’s co-founder, Mark Selby, said staff culture was “an absolute priority” and it was “incredibly important” for him that the chain was a fair place to work. He said the majority of staff kept on average 55% to 60% of their tips. “There are always those who would prefer to keep 100% of all tips received themselves,” he said. “We say to people from day one that if they do not want to share with the team, Wahaca is probably not for them.”Wahaca’s co-founder, Mark Selby, said staff culture was “an absolute priority” and it was “incredibly important” for him that the chain was a fair place to work. He said the majority of staff kept on average 55% to 60% of their tips. “There are always those who would prefer to keep 100% of all tips received themselves,” he said. “We say to people from day one that if they do not want to share with the team, Wahaca is probably not for them.”
Selby said the chain had previously asked staff if they preferred a 10% service charge, and that was rejected. However, after recent discussions it is going to trial removing the 0.075% cash levy in some restaurants. There was outrage this month when some of the country’s best known restaurant chains including Pizza Express, Strada, Zizzi, Ask Italian and Giraffe were accused of keeping all or part of the service charges automatically added to bills rather than passing them on to staff.Selby said the chain had previously asked staff if they preferred a 10% service charge, and that was rejected. However, after recent discussions it is going to trial removing the 0.075% cash levy in some restaurants. There was outrage this month when some of the country’s best known restaurant chains including Pizza Express, Strada, Zizzi, Ask Italian and Giraffe were accused of keeping all or part of the service charges automatically added to bills rather than passing them on to staff.
The fresh controversy surrounding tips recently prompted business secretary Sajid Javid to launch a government investigation that runs until early November with a call for evidence by 10 November 2015.The fresh controversy surrounding tips recently prompted business secretary Sajid Javid to launch a government investigation that runs until early November with a call for evidence by 10 November 2015.
Restaurant owners and waiting staff can respond in one of three ways – using the government’s electronic survey tool, by emailing labourmarket.consultations@bis.gsi.gov.uk or filling our a form at Tips, gratuities, cover and service charges: call for evidence.
After a public backlash, the restaurant chain Giraffe announced earlier in the year that it would remove its service charge and allow all tips to go to staff. Giraffe previously kept 10% of the tips for “administrative and other business costs” but said it had decided to make the change in its mid-year review. Zizzi and Ask Italian have also reversed their policies.After a public backlash, the restaurant chain Giraffe announced earlier in the year that it would remove its service charge and allow all tips to go to staff. Giraffe previously kept 10% of the tips for “administrative and other business costs” but said it had decided to make the change in its mid-year review. Zizzi and Ask Italian have also reversed their policies.
David Turnbull, of Unite, said the tipping scandal has developed since 2009 when restaurants adopted a Code of Best Practice.David Turnbull, of Unite, said the tipping scandal has developed since 2009 when restaurants adopted a Code of Best Practice.
“The government needs to get a grip. Its failure so far to conduct an urgent review of the 2009 Code has led to widespread abuse with some rogue restaurants left to skim staff tips with impunity.” He said the onus was now on the government review to stamp out rogue practices“The government needs to get a grip. Its failure so far to conduct an urgent review of the 2009 Code has led to widespread abuse with some rogue restaurants left to skim staff tips with impunity.” He said the onus was now on the government review to stamp out rogue practices
Last month the Casual Dining Group, which also owns Bella Italia, Cafe Rouge and La Tasca, announced it was scrapping the 10% administration fee it deducts from staff tips, while Pizza Express, which was the first restaurant to come under the spotlight for its tipping policies, also reversed its policy of taking a cut from tips after the Unite campaign and a backlash from customers.Last month the Casual Dining Group, which also owns Bella Italia, Cafe Rouge and La Tasca, announced it was scrapping the 10% administration fee it deducts from staff tips, while Pizza Express, which was the first restaurant to come under the spotlight for its tipping policies, also reversed its policy of taking a cut from tips after the Unite campaign and a backlash from customers.