I’m not a serial restaurant user, as I rather resent how much they charge and I like cooking, but it’s nice to go out occasionally as a treat, and I have been to the large French eaterie chain Côte. They do an especially nice breakfast deal for a tenner. In fact, oddly, I went to the first ever Côte, before it was a chain. (Get me.) It now has 72 restaurants around Britain and is one of those brands that ensures that everywhere is the same. It was last year bought out by the statutory private equity firm. It is dead to me now.
If I ever use a chain restaurant and the service charge is not automatically included, I will ask the waiter if they still get the tip if I add it to my bill on my credit card and then start doing the maths. I assume they are not lying if they tell me that they do. Or at least I did. No longer. Because, thanks to an exposé in my local free newspaper, I now know that Côte, which adds the “optional” 12.5% service charge, does not pass this onto its staff. It goes straight to the company instead of being kept by workers at the restaurant where the diner dined.
The chain defended this practice in the article, saying it “allows them to pay restaurant staff an hourly rate of around £7.50-£8, above the national minimum wage of £6.50 for over 21s.” (Good luck with that in London, where the Living Wage is £9.15.) A whisleblower told the Evening Standard One that the staff are supposed to be “grateful, but most of us would prefer earning the minimum wage and take home our tips for the hard work we do.”
The worst part of all this – and it’s probably occurring in every restaurant chain run by a fucking loveless, food-hating, bottom-line-chasing private equity firm – is that Côte staff are “told to tell customers who ask where the service charges goes that it is given out between workers.” They are being instructed to lie in order that they don’t get to keep their tips. It’s like living in Ripper Street times. I know, you can technically ask for the “optional” charge to be removed, and then put your tip, in cash, into the palm of your waiter’s hand. That’s the only way to get round it. Except that in Côte, management have got this covered. They said that waiting staff can “decide” whether to keep any cash tips left on top of the service charge or put it into a general pot to be shared with other members of staff. So the service charge doesn’t cover service.
One staff member told the Standard they were “told to hand over cash tips”. I’m sure there’s small print in the waiting staff’s contracts to cover this, otherwise it would be theft. One sympathetic politician failed to see his own joke when he told the newspaper, “This seems to be the tip of the iceberg.”
Or the tip for the iceberg lettuce. Côte’s profits rose 27% last year to £16.3 million. I bet private equity firm BC Partners went out for a nice meal at somewhere other than Côte. It’s all bullshit. Pizza Express, Strada, Zizzi and Ask Italian charge between 10% and 8% to staff to claim back their tips paid on cards, making up some flimsy excuse about having the pay for the administration of taking credit cards. Don’t take credits cards then and see how many customers you lose. Does anybody care about their staff? Of course they don’t. Staff are expendable units of labour
Jeremy Corbyn wouldn’t stand for it.
Asked a waiter in Pizza express who said he got about half of any tip that was left on credit card. Unfortunately I don’t always remember to get cash out before going to a restaurant, but since learning about this I’ve tried harder to make sure I have enough.
Brillant read mate. People love to overlook the disease that is Capitalism.
I’ve always deleted service charges and put cash in the waiting staff’s hands. I hope they pocket it. Who’s to know if they don’t?
Dunno if it’s damage limitation BS, but here’s what Cote had to say in response:
Also, one recent victory — Pizza Express will no longer deduct an 8% “admin charge” from credit card tips after all the bad publicity they got over that revelation. Small victories.
Meanwhile, here in Texas, the most waitstaff get $2.13 an hour… in 2015… I’d been living here in Texas for several years before I found out just how low the minimum wage is for tipped employees. Of course, businesses love it because it pushes the bulk of the cost of their labour force onto the customers. So, when you’re visiting the US, please remember, tipping isn’t really optional in restaurants (unless the service is absolutely terrible) since the employees depend upon tips to survive.
A few isolated municipalities are starting to raise minimum wage for tipped employees, but they are few and far between.