17:38 05 August 2015
Unite is planning a series of demonstration outside Pizza Express restaurants for deducting 8per cent from tips paid to staff by credit cards. Unite, which is acting on behalf of its members, calls for the elimination of tronc charges. A move that has already been taken by other restaurant chains including Chiquito, Garfunkel’s and T.G.I. Friday.
"We are calling on Pizza Express and others to abolish the unfair and unjust percentage deduction. Until this happens tip in cash!" Unite says.
Meanwhile, a spokesperson from Pizza Express said that although they charge tronc fees, they do not take National Insurance off the tip, which would amount to 12.8per cent.
Pizza Express added that there are more restaurant chains that have the same practices. These include Ask (8per cent), Prezzon (10per cent), Strada (10per cent), Giraffe (10per cent), and Zizzi.
Ask says: “If it is more convenient for you to leave a credit card tip, ASK Italian will be accountable for ensuring tax is paid on it. Because of this, 8 per cent is deducted to cover the costs of getting these taxed and paid to the team. ASK Italian does not profit from this charge.”
Meanwhile, Tragus says: "Both credit card tips and service charge paid are subject to a 10 per cent deduction for administrative and other house costs, prior to a full distribution to employees in the restaurant through the company's payroll system.
"The 10 per cent deduction covers the cost of credit card fees, payroll bureau processing costs and other direct house and administration costs."