The Tipping Dilemma - Reflections of a Reluctant Landlady
Introduction
The Tipping Dilemma – one of those sensitive issues that can cause more headaches than you’d imagine. In the early days, I didn’t think too much about it. People leave a small tip, the staff are happy, and life goes on.
Sadly, it is an issue that can be more contentious than someone taking your parking space and it is much more complicated than you think.
The Customer’s Point of View
As a customer it can be a bit of a minefield. Do you tip, would the employee get it or the company? How do you feel about a service charge being added on? What if the service was mediocre – do you still feel obliged to tip? have even had a service charge added on when I have popped into a café for a quick coffee which irked a bit as it wasn’t even table service.
The Business Owner’s Point of View
As a business owner, you also had to watch out that your staff weren’t tip chasing, for example being too generous with your products in order to get a bigger tip for themselves. Or over-compensating for a small complaint, again to make their lives easier and perhaps still get a tip. Then there were disagreements amongst the staff about who should get what – especially when it came to the senior members. Should salaried managers still get tips?
It’s not that I am against tipping, in fact I think when a team is working hard to give the customer a great experience, they deserve it. But I wasn’t for automatically adding on a service charge to every bill, unless it was a large Christmas party for example. I think it should be a choice for customers. Not being made to feel obligated.
Other Examples of Tipping Issues
I once had a manager who I believed was, unfortunately, helping himself to the staff’s hard-earned tips. It was a tricky situation because I couldn’t accuse him without evidence. I remember sneaking around after shifts, quietly counting tips to see if anything was amiss. Sure enough, my suspicions were confirmed. While the manager was eventually dismissed for another reason, it was a real shame that he had been robbing from his teammates. The police, unfortunately, didn’t see the value in pursuing the case further, leaving a bitter taste in my mouth about how little regard he had for his team mates.
Another time, during a particularly rowdy Christmas party, one very generous (and drunken) customer left a massive tip for the staff when she settled the large bill for the night. Everyone was thrilled. But the next day, she showed up sober and demanded the money back! The disappointment in my team’s faces was very plain to see!
New Legislation
These experiences reinforced how critical it is to have a proper system in place. As of 1st October 2024, the Employment (Allocation of Tips) Act 2023 and the Code of Practice on Fair and Transparent Distribution of Tips mandate that every pub and restaurant must have a written tips policy. This law isn’t just about compliance—it’s about fairness, transparency, and making sure everyone on the team gets their rightful share without any misunderstandings or shady dealings. Importantly, it ensures that the team get 100% of the tips, without admin fees being taken out of the pot.
Conclusion
If you’re a pub owner or work in hospitality, take it from me—get that policy in place. It will save you a lot of heartache.
If you would like to purchase a ready-made policy, that you can simply tweak to fit your business, you can purchase one here for just £1.99.
Would you like to read more Reflections of a Reluctant Pub Landlady? If so, click here.
