Gaucho chain to slash waiters’ share of service charge and boost head office pay

Gaucho restaurants automatically add a service charge of between 12.5% and 13%. Photograph: Iain Masterton/Alamy

The Argentinian steak restaurant Gaucho is slashing the share of the service charge its waiters receive, using some of the funds to bump up the pay package of head office workers.

A letter to workers seen by the Guardian says that from 1 October existing waiters would receive between 25.45% and 29.4% of the service charge collected at tables they have served, depending on length of service, down from 37% previously – already a reduction from 45% early last year. Bar staff will get 17% of the service charge, down from 20%.