Restraunt Gratuity/Tip - Secret Corporate Greed?

[Paul O]

So last night my family and my sisters family got together and went out for a meal (3 kids, 4 adults). The bill came to £112, which was printed largely at the bottom of the receipt. It was only a chance glance that I noticed that an 8% Gratuity Tip had been added on my behalf. 8%!

Now, call me tight (I'm a Yorkshireman), but £8 seemed a lot. Perhaps not if this was 7 individuals going out for a meal, but for effectively two sets of people, it seemed a bit steep. The food was nice, but the service wasn't great. We had to keep chasing drinks every time and at one stage it took around 20 minutes before they arrived.

We decided that, yes we would pay a tip, but not all of it. Personally, I think its really rude to have it automatically added - to then make the customer feel like a tight arse for wanting to lower the price when it comes to getting out the credit card. We chose to explain this to our waitress, who was very nice and smiley throughout our time there, she understood but then told us something that we weren't expecting...

It turns out that this 'Gratuity' does not go to the waiters and waitresses at all. It actually goes straight back to the company, who then use this for "staff events". We asked about all of these events - to which she only had one to her recollection: the annual Christmas party. There must have been 20 tables in that restaurant and we were there perhaps an hour. 20 tables of £8 per hour, 10 hours opening for say 300 days a year. That's a hell of a party! We cancelled the whole tip on that basis for the sheer greed of the company, who were trying get more money off us in such an underhanded way.

So I guess my question is - is this the norm now with restaurant tips? Has anyone heard of this before? I will certainly be making sure with the waiter/waitresses at future places we visit that any tip that is left digitally will actually go to them.

Paul.

[bazza white]

I have it removed and then pay the waiter/waitress directly. If im paying out a tip oit of my own pocket dont want it going anywhere but to waiter/waitress.

[alorotom]

Perfectly normal for gratuity to be added in groups of >4

£8 on a bill of £112 is on the low side I would say

We normally go 15% good service and 10% mediocre (which is what you describe)

PS. Don’t go the the US where now 20% is the norm you’ll likely ‘tip’ over the edge

[ShampooEfficient]

alorotom said:

We normally go 15% good service and 10% mediocre (which is what you describe)

Why on earth would you tip for mediocre service? If I'm paying for a meal, I expect the basic cooking and serving to be in the price.
If the waiting staff are worth tipping, they get a tip in their hand, and usually a note to their manager praising them.

[anonymous-user]

Don't pay if service is rubbish but 8% is tight not generous. For £112 bill Id pay at least £10 more likely £15.

[Digger]

I always remove the service charge from the bill and rummage for the appropriate amount of loose change depending on the service received.

Edited by Digger on Sunday 28th January 12:39

[blearyeyedboy]

I pay my bill by card but then I try to tip in cash, never card if I can. I'm afraid this top-slicing of tips by chains of restaurants is commonplace.

That said, £8 on a £112 bill is a bit on the tight side, if I'm honest about my opinion. £15 seems more like it, unless service was poor.

[hairyben]

I'm happy tipping for a decent meal but the inconsistency annoys me. Last night's meal bill of 185 included 12.5% service charge (not a fan of adding it automatically but can see why places do it) and then had a blank line for tip! Wtf? A local we like has a 10% "cover" charge that goes nowhere near the staff but as it's good value I'm happy to tip over.

[Paul O]

alorotom said:

Perfectly normal for gratuity to be added in groups of >4

£8 on a bill of £112 is on the low side I would say

We normally go 15% good service and 10% mediocre (which is what you describe)

PS. Don’t go the the US where now 20% is the norm you’ll likely ‘tip’ over the edge

Hehe! I don't mind tipping, especially in America as I understand that they are payed poorly and make up their wages by providing a great service. Over here in UK, everyone gets minimum wage regardless how good or crap they are at their job. Tips, therefore, are for exceptional service in my mind. I don't tip the cashier at Asda, or the petrol station - they get the same standard pay as the waiter (probably, you get my point). So good service, yes absolutely and in the US, certainly.

However my problem was more the fact that the company gets the 'tip', not the waiter. And that seems really underhand to me, gaining profit from unsuspecting punters who assume they are doing a good deed for the person whom they have been interacting with for the past hour. That can't be right, can it?

[ZOLLAR]

Paul O said:

I noticed that an 8% Gratuity Tip had been added on my behalf. 8%!

Paul.

The first Denny's in Europe opened in Swansea this month, there's a 12.5% non optional gratuity on all bills!

I've no issue with Tips etc in countries where the waiters need it to survive or in a restaurant where the service is outstanding but non optional gratuity to people who will be on at least minimum, living in South Wales for what is basically a fancier Mcdonalds is a piss take IMO.

Honestly not a tight arse or grumpy bugger but I doubt I'll go there simply due to that.

[Digger]

Can they do that, non optional? How is it described on the bill?

[ZOLLAR]

Digger said:

Can they do that, non optional? How is it described on the bill?

I'll admit to it being second hand knowledge but that's what I have been informed, the tip is automatically added and have been informed non optional.
It's the only one in the UK atm but I can't imagine it going down well.

Even if I'm wrong about the non optional point sticking a 12.5% gratuity on food like that seems a bit ridiculous.

[leef44]

Paul O said:

Hehe! I don't mind tipping, especially in America as I understand that they are payed poorly and make up their wages by providing a great service. Over here in UK, everyone gets minimum wage regardless how good or crap they are at their job. Tips, therefore, are for exceptional service in my mind. I don't tip the cashier at Asda, or the petrol station - they get the same standard pay as the waiter (probably, you get my point). So good service, yes absolutely and in the US, certainly.

However my problem was more the fact that the company gets the 'tip', not the waiter. And that seems really underhand to me, gaining profit from unsuspecting punters who assume they are doing a good deed for the person whom they have been interacting with for the past hour. That can't be right, can it?

Unfortunately this is common practice as I understand. The law only stipulates minimum wage and must not include tips to get to the minimum. It's at the discretion of the restaurant owner and staff what amount of tips go to the staff. The most generous owners will share all tips to staff including kitchen. The other extreme is all tips go to the owner. Generally in the latter case, if the pay is not high enough to compensate for no tips then you will not get competent staff. Less competent staff then means less business. A good business owner will address this, a bad one will go bankrupt.

I guess you can always ask the staff before tipping. Personally I've grown up paying minimum 10% tips unless there is service charge. This is more a personal thing since my family grew up in the restaurant trade.

[GroundEffect]

Digger said:

Can they do that, non optional? How is it described on the bill?

Of course they can, as long as you know about it before-hand. It'll be on the menu.

I'm sure it's so they can make the prices of each dish look lower than it really is.

[catfood12]

What restaurant was it ?

No naming & shaming etc, but I'm interested in going for the menu....

[Bright Halo]

Never understood why restaurants automatically add a service charge for groups of customers, usually 8+.
Surely it is easier to serve 1 group of 8 rather than 8 individuals?

I tip appropriate to service given. Sometimes nowt other times 20% or so especially if I have been drinking!

[Frank7]

keirik said:

Don't pay if service is rubbish but 8% is tight not generous. For £112 bill Id pay at least £10 more likely £15.

Experience has taught me that entering tipping threads on a U.K. forum is like running out into the open like Butch and Sundance
in the movie, you'll get shot at from all directions, but EIGHT POUNDS on a £112 bill!!
As MUCH as that! Gimme an ever-loving break, he's complaining about EIGHT POUNDS!
As you said, £15 seems about right for that, but let's be fair, the OP did say that he was a Yorkshireman.

[bearman68]

bks to this tipping business. What's the point? People are paid to do a job. Just do it, and do it well. Solves all the problems.

I'm an auto electrician. I don't get tips. In fact people normally want money off. What's the difference?

Imagine going into a resurant, and the bill comes to £112, and then saying, "How about a hundred for cash mate", didn't take me long to eat it, and you can get another punter in here sharpish.

Same principle.

[RDMcG]

This comes up about once a quarter and seems to be almost exclusively a British thing. No idea why.

I pay the service charge if its there, and tip according to local custom if no service charge..for example:

-Nothing in (say) Japan

-18% in Canada

-20% in USA

Most restaurants will add a service charge for groups in my experience. I am always surprised when British people complain so much when they go on vacation to a place where tipping is normal and part of the income of the server.

Generally British people seem to be no tighter than anyone else but this is a blind spot,, waitstaff hate to serve them on this side of the pond. When I am in the UK I pay service charge ( common in better restaurants) or typically add 15% to the tab if not. Maybe a bit too much but tend to err on the side generosity. Obviously in the event of truly poor service I do not tip, but this is not generally the case in London my normal port of call in the UK.

[SCEtoAUX]

That Denny's thing is nothing more than making the food look cheaper than it actually is. Classic underhand behaviour.