British hospitality has reached a tipping point. literally. Britons are taking to social media in droves to complain about high service charges being added to their bills as pubs and restaurants try to fatten tip containers to boost staff pay.
A video posted by TikTok user Nick Rhodes criticizing expectations of tipping culture has been viewed about 20,000 times. This has prompted a flurry of comments from workers complaining of low wages and consumers suffering from a cost-of-living crisis.
Some warn that the UK is moving closer to US-style tipping practices, where customers pay employees small tips in the hope that they will cover the payroll for them.
TikTokers fight back against falling expectations
Credit: TikTok user @nandini
To tip or not to tip? This topic has long been a topic of debate among British people. The arrival of the receipt often begins a heated discussion. Questions surrounding the additional amount will involve analyzing every aspect of the meal, from the waitstaff's table manners to the wait time for the meal.
But for some, the oft-repeated joke of “tipping your waitress” has now gone from a personal choice to a request. Many people feel guilty about not seeming to give enough. Some recall the embarrassment they felt when they asked for their chips to be removed.
Now, TikTokers are starting a new debate: Should they tip at all?
“Why does tipping seem to be compulsory in the UK?” asked Nick Rhodes in his viral video. “If you're not careful when paying your bill, companies will sneakily add up to a 10% tip on top of your bill.”
Meanwhile, TikTok user Nandini shared a talking head last year in which she opined that Britain's tipping culture was “out of control”, garnering more than 50,000 likes.
“I went to a bar and they literally took my order and served me a drink and that was it,” she said. “[But] A 12.5% service charge will be automatically added to your bill. ”
Hospitality companies struggling to pay staff
The reported increase in tip expectations can be attributed to the ongoing cost of living crisis. Many pubs, bars and restaurants in the UK are facing closure due to falling profit margins as consumers spend less and energy bills remain in turmoil.
In response to rising overhead costs, establishments are increasingly imposing seemingly arbitrary tip rates on their bills. Previously, 10% was the norm. Currently, a patron can expect to pay his 12.5% or 15% of employee tips.
This custom has spread from fine restaurants to coffeehouses. In London, where business expenses tend to be higher, some customers said they were asked to tip 20%.
Although tips are usually optional, they are automatically applied to the bill, which can create an awkward situation if the customer requests that the amount be removed from the bill. As a result, social pressure can lead to tips being paid to staff rather than recognition for quality customer service.
Raising the minimum wage causes problems
Tipping prices could soon become the norm across the United States. This spring, the national minimum wage will rise to £11.44 an hour, adding around £1,000 to each staff member's annual balance sheet.
As a result, a recent Startups survey found hospitality companies are the least confident of meeting pay expectations this year and need tips to inflate pay packets.
Large companies are also struggling. BrewDog, the Scottish brewery that owns more than 100 pubs around the world, has suspended its status as a living wage employer after CEO James Watt admitted cost increases would be too great for even a keg-sized company to absorb. I had no choice but to cancel it.
Fiona is a 25-year-old graduate living in London. She has six years' experience working in the hospitality industry, most recently at the Covent Garden based restaurant chain. In an interview with Startups, she revealed that without the tips, her hourly wage would have been cut in almost half.
“Every hospitality job I've ever had paid minimum hourly wage, let alone a living wage. I couldn't live without tips,” she told Startup. “I think 12.5% is appropriate for her as a server.”
Can I have a 20% tip?
Sinead Byrne is a senior consultant at a global recruitment agency and recently went out to a local bar in Peckham for her birthday. She recalls that her party of 16 booked a table for snacks at her bar rather than a full meal at the restaurant.
After ordering around 18 bottles of wine, eight small plates and a few chips, the group settled in for £400. By the time Mr Byrne got home he realized he had been charged a 20% service charge and £80 had been added to his total bill.
“I only had one food order, so it felt like a lot was being added to my bill,” Byrne tells Startups. “Given the service we received, I don't think our party could have been more demanding than a table of six.”
Fiona shows sympathy for Byrne. In her view, servers should only be tipped if they do a good job. She admits that she doesn't tip staff even when she feels they treat them poorly.
“There should be no stigma in asking for a reversal of the tip even if the service is bad or even average,” she further explains. “But hospitality workers are really suffering, so people should recognize good service regardless of the tip amount.”
Are we heading towards a US-style tipping culture?
Many commentators argue that the UK tipping system is moving towards a billing structure similar to the US. America is notorious for its high service charges, usually a minimum of 20% of the order, which can catch unsuspecting travelers by surprise.
In general, this is because hospitality workers in the United States receive shockingly low wages. The U.S. federal government requires employees who receive tips of $30 or more per month to be paid at least $2.13 per hour.
Therefore, customers must consider the difference between the minimum wage and the living wage of $25.02 per hour. Brits are concerned that the drop in income means hospitality employers are becoming more reliant on tips to pay employees a decent salary.
Byrne expressed similar concerns. “I sincerely hope [tips] “As is often the case in the U.S., we do not compensate waitstaff for extra work and supplement their salary,” she added.
Burnout in the hospitality industry exacerbates talent loss
Pay is not the only problem facing the hospitality industry. With increasing vacancies and high turnover rates, employees are feeling the pinch not only financially but also emotionally.
The Burnt Chef Project surveyed 1,273 hospitality professionals in 2023. It was found that 84% of respondents had experienced mental health issues during their career. Given this mental health crisis, tipping may be the only thing keeping employees behind the counter.
Fiona quit her job in hospitality in October, citing low wages and poor benefits as factors in her decision. “There is no incentive to stay when you can earn just as much in an office job,” she comments.
“In my mental state, I cannot tolerate long-term hospitality. Given the intensity of the work, both physically and mentally, I would have to be paid more to stay here.'' ”