The charge against Pizza Express is that when a customer settles a check and pays by credit or debit card and opts to pay a tip using the card (an increasingly common practice), the restaurant deducts an 8 percent administration fee from the tip.
Many of the workers and their trade union (Unite) think the charge is unfair (even if it is not unlawful). They also point out that many other restaurant chains pay a customer’s tip to their staff in full.
The issue is not a small one, for Pizza Express has over 400 restaurants in the U.K. and it has been operating for 50 years. It also has 40 establishments in Europe, Pakistan, Hong Kong, India and the Middle East. The chain is owned by a private investment company called Hony Capital.
To highlight the issue a petition has been organized, calling on Pizza Express to pay what many feel is due. The petition states that Pizza Express is collecting around £1 million ($1.6 million) in additional income each year through the deduction.
The petition states: “Most Pizza Express staff are paid the national minimum wage – barely enough to survive on. They are heavily reliant on tips simply to make ends meet.
“It’s why we are urging Pizza Express to scrap the 8 percent ‘admin fee’ it deducts from customer credit card tips simply to process them through the payroll…It can’t cost that much to transfer credit card tips into workers’ pay packets.”
The petition also highlights the fact that many Pizza Express staff are paid minimum wage, which is currently £6.50 ($9) per hour.
It is not only staff and unions who are concerned. Government minister and Business Secretary Sajid Javid told The Independent newspaper: “When a diner leaves a tip, they rightly expect it to go to staff. In full. I’m concerned about recent reports suggesting some restaurants pocket tips for themselves. That’s just not right.”
He also added: “I’ve ordered an immediate investigation to look at the evidence and consider the views of employees, customers and the industry to see how we can deal with the abuse of tipping.”
In addition to the petition, a protest is being planned outside a large Pizza Express establishment along Baker Street in London. The protest takes place on Thursday September 4.
