Pizza Express to Remove Administration Fee on Staff Tips

Strategic Insights -

Pizza Express has announced that it will be removing an 8% administration fee on staff tips made by card, effective from October 6. The decision follows a campaign by unions to allow restaurant workers to keep tips left by customers. The UK-based pizza chain, which operates 430 restaurants and employs 10,000 staff, will introduce an automated system to distribute tips made by card among employees.

Key Takeaways:

  • The 8% administration fee on staff tips made by card will be removed on October 6, with tips to be "fully distributed" among employees.
  • Pizza Express will introduce an automated system to distribute tips made by card across its 430 restaurants.
  • The company employs 10,000 staff, and the tip change is part of a broader effort to improve the image of the casual-dining industry.
  • Pizza Express CEO Richard Hodgson has committed to investing heavily in apprenticeships and the creation of 2,500 new jobs over the next few years.
  • Business Secretary Sajid Javid has launched a probe into tipping, with leading restaurant chains accused of keeping all or part of service charges.
  • The company will be adopting the Living Wage in full, following the Government's decision.

Statistics:

  • 8%: the administration fee on staff tips made by card that will be removed by Pizza Express.
  • 430: the number of restaurants operated by Pizza Express.
  • 10,000: the number of staff employed by Pizza Express.
  • 2,500: the number of new jobs to be created by Pizza Express over the next few years.
  • 6: the date on which Pizza Express will stop charging the administration fee on staff tips made by card.

Sources:

  • Press Association: "Pizza Express to remove administration fee on staff tips"
  • Business Secretary Sajid Javid's statement on tipping probe"]