Following an investigation into tipping policies, hospitality groups in the UK have cautiously welcomed a Government recommendation that restaurants and bars should not take deductions from staff tips.
Sajid Javid, the UK Business Secretary, has launched a consultation on tipping amid concerns that restaurants are confusing customers by not being transparent about the charges and who actually receives any tips, reports The Telegraph, which adds that restaurants could be stopped from adding a discretionary service charge to bills under Government plans to remind consumers that they do not have to tip when eating out.
The investigation is being initiated due to complaints made against number of high street restaurant chains in the UK who allegedly were using staff tips to top up senior manager salaries.
According to bighospitality.co.uk, the Chief Executive of the British Hospitality Association, Ufi Ibrahim, commented: "Customers should know where their money ends up and how much of it goes to staff".
Food and drink businesses have until 27 June to respond to the government report, following that there will be further recommendations published.
In the US, a no-tipping movement is attracting support, with Danny Meyer, the New York restauranteur, removing the practice of tipping from his two star Michelin restaurant, The Modern, earlier this year, in exchange for higher prices and an increase in staff wages.
