PizzaExpress to end payment card fee on staff tips via new IT system
September 3, 2015
PizzaExpress today announces changes to its tipping policy. From 6th October, the 8% administration fee on tips made by electronic card payment will be removed. This follows the introduction of a new automated system to distribute tips across the company’s 430 UK restaurants, employing 10,000 people.
The automated system has been developed over the last six months and is being launched following pilot trials to avoid any potential implementation issues. It replaces the more labour intensive manual procedure used to help redistribute tips among staff and to meet the company’s tax and legal obligations to HMRC.
Tips made on electronic card payments will now to be fully distributed among employees as agreed by the company’s Tronc committee. Currently, this independent group elects to give 30 per cent of card-based tips to cleaners, pizzaiolos and other kitchen staff; with the remaining 70 per cent going to the individual waiter as a reward for great customer service.
Richard Hodgson, CEO of PizzaExpress said: “We recognise that our team members are critical to delivering the fantastic customer experience that PizzaExpress has built over many years. As a leader in the casual-dining industry, we’re committed to best practice and to ensuring that our people are properly rewarded for the valuable contribution they make to our business.
“We have always been, and will continue to be, transparent about our tipping policies. We also agree with calls for greater clarity across the industry in order to ensure that staff are given a fair deal, and to enable customers to make an informed choice when it comes to tipping.
“We want people to recognise that this is a company that values employees and offers long-term opportunities. I’m committed to ensuring that we continue to work on improving the image of our sector, and to ensure we appeal to talented, ambitious people with the right mix of skills. We are playing our part by investing heavily in apprenticeships and the creation of 2,500 new jobs over the next few years; and we welcome the Government’s decision on the Living Wage which we will be adopting in full.”