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PizzaExpress changing tipping policy to remove controversial fee

After nearly 10,000 people signed a petition urging London-based PizzaExpress to stop siphoning tips from its employees, the chain announced Thursday it would eliminate a recently imposed admin fee by Oct. 6.

September 3, 2015

After nearly 10,000 people signed a petitionurging London-based PizzaExpress to remove an 8 percent administration fee on tips made by electronic card payments, the chain announced Thursday it would eliminate the controversial admin fee by Oct. 6.

In an email to PizzaMarketplace.com, the chain said the fee elimination is in part thanks to the introduction of a new automated system to distribute tips across the company’s 430 restaurants that employs 10,000 people. The petition effort was launched just about a month ago.

Tips made on electronic card payments will now to be fully distributed among employees, with 30 percent of card-based tips doled out to cleaners, pizzaiolos and other kitchen staff; and the remaining 70 percent going to the individual waiter.

"We recognise that our team members are critical to delivering the fantastic customer experience that PizzaExpress has built over many years,"  Richard Hodgson, CEO of PizzaExpress, said in a company press release. "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."

The automated system has been developed over the last six months and being launched following pilot trials to avoid any potential implementation issues, according to the release.  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.

“We have always been, and will continue to be, transparent about our tipping policies," Hodgson said. " 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."

Hodgson also said he wants people to understand that his company 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," he said. "We are playing our part by investing heavily in apprenticeships and the creation of 2,500 new jobs over the next few years."