Calls for new hospitality tipping policy amid fears of ‘massive’ financial hit
Campaigners are calling for a new fair tipping policy in British pubs and restaurants amid fears the industry could take a “massive” financial hit as restrictions are lifted.
Concerns have been raised that a forecasted decline in gratuities after Covid could have a severe impact on workers, many of whom are already on the minimum or living wage.
According to non-profit organisation One Fair Wage, average tips have declined at the vast majority of US hospitality venues following the pandemic, due in part to the need to enforce safety measures such as card payments, social distancing and face masks.
This trend is expected to be mirrored in the UK, where hospitality venues were able to open for outdoor service this week.
“Not only has Covid all but killed off cash, but the social distancing measures in place means less interaction between waiting staff and customers,” said Sacha Lord, night time economy advisor for Greater Manchester, who launched the campaign. “It’s likely we’ll see a serious decline if not the end of tipping because of this.”
As a result, the campaign is calling for greater transparency and a new code of conduct for hospitality operators to ensure staff receive their fair share of tips.
Many venues have switched to card payments as a result of the pandemic, raising concerns that gratuities would not be passed on to employees.
Lord said other ways of raising employee pay, including price increases, should be considered so that tips become bonuses rather than “essential substitutes for low salaries”.
The calls have been backed by Andy Burnham, mayor of Greater Manchester, who called for a new employment standard for the hospitality sector and night time economy in his 2021 manifesto published today.