11 January 2017
This week, a protest took place outside of Harrods after The United Voices of the World union (UVW) announced that 75% of the service charge collected at the 16 cafes and restaurants, up to £2.5m per year, is retained by the landmark store. Harrods has said that it’s in the process of reviewing its service charge system. This follows another high-profile case where top TV chef Michel Roux, owner of La Gavroche restaurant, also admitted that tips were not passed onto staff. The resulting public backlash has damaged both brands.
In May 2016, the government highlighted a range of options to improve the tipping system, including the possibility of making the current code of practice on tips mandatory. Although there’s currently no law requiring restaurants to hand over all the tips to their staff, the Business Secretary, Sajid Javid has said gratuities should go to the people they were intended for.
In response, the NHBF has urged hairdressing, barbering and beauty salon owners to take notice of the current voluntary code of practice on tips. NHBF president, Agnes Leonard comments:
“Whist we don’t agree that putting heavy-handed rules in place is the solution, our 2016 survey showed that 79% of salon owners agree that tips should always be passed onto staff as a reward for the good service clients have received. It’s damaging for any brand that isn’t seen to be passing on tips as clients intended”.
NHBF CEO Hilary Hall comments
“All team members should be able to communicate how tips are handled to clients so they understand your policy on tips and that you’re passing them onto your staff. Once the current code of practice has been updated, the NHBF will produce a guide on tipping specifically for hairdressing, barbering and beauty to help business owners handle tips correctly.”