Pizza Express ends admin fee on tips paid by card

Restaurant chain Pizza Express is to stop deducting an 8% administration fee from staff tips made by card, the company has announced.

It had come under pressure from unions and staff and has now announced the change of policy from 6 October.

The chain said a new automated system would be introduced across its 430 restaurants, which employ 10,000 staff.

Tips made by cards will be "fully distributed" among employees, the firm said.

Pizza Express and others use a "tronc" system, where all the tips are collected together and distributed evenly through the staff, usually with about 70% going to the waiters, and the rest given to kitchen and other workers.

At present, the chain deducts 8% from tips paid by credit or debit card. The company had said this was a fair cost for processing the money. However, it prompted protests organised by the Unite union which seem to have brought about the change of policy.

Richard Hodgson, chief executive of Pizza Express, said that he wanted to ensure staff were "properly rewarded for the valuable contribution they make to our business".

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

"We want people to recognise that this is a company that values employees and offers long-term opportunities. I am committed to ensuring that we continue to work on improving the image of our sector."