Gordon Ramsay added a discretionary service charge of 20 per cent to diners’ bills at his prestigious Lucky Cat restaurant in London in the latest example of Britain’s move towards a US-style tipping culture.
The charge was added to the Asian-inspired restaurant’s New Year’s Eve menu, on which customers were already being charged £138 for a Japanese A5 sirloin meat dish, or £50 for spiced lamb chops.
A chef’s selection of sushi already costs £140 for diners, who could enjoy 350-degree views of London from the restaurant’s plush setting on Level 60 of the 22 Bishopsgate skyscraper.
In small writing at the bottom of the menu, it stated: “A 20 per cent discretionary service charge will be added to your bill.”
Mr Ramsay, who opened Lucky Cat in 2019, typically charges 15 per cent at most of his establishments.
It is higher than restaurants owned by other renowned chefs, including Marco Pierre White, who typically charge 10 per cent. Rick Stein charges 12.5 per cent at the Seafood Restaurant in Padstow.
Niaz Caan, who runs the award-winning Paro in London’s Covent Garden, where diners face a 12.5 per cent discretionary service charge, said the 20 per cent charge was too high. He said the system was essential to incentivising high standards of service, and that customers could opt out when they pay.
“I think 12.5 per cent is okay, but the minute you start going 15,16, 20, I think it’s very exorbitant,” said the chef, who said he thought restaurants charged more to recover costs or because they were struggling to attract good staff. But he added: “If it’s on New Year’s Eve, then maybe there’s a reason to do it.”
The emergence of the 20 per cent service charge comes as more pubs and restaurants automatically add the discretionary tip to diners’ bills, rather than leaving them with the decision on how much to leave in the first instance.
The amount also reflects the situation in America, where the tipping culture is more widespread. People hand over extra money for drinks at a bar and jobs like moving luggage at hotels. Tips of 20 per cent are also added to bills in the country.
The payments are generally expected to top up waiters’ below-average salaries.
Mr Caan said he was seeing mandatory service charges added to customers’ bills in the UK, particularly in the West End, but he did not believe the US-style would come to the UK completely.
He said: “I know the culture in America, even in high-wage states like New York, the tipping culture is still quite ludicrous. I don’t think the UK will ever get there because it’s based on different cultures altogether.” He added that bringing in a mandatory charge “defeats the point” of encouraging good service from staff.
It also illustrates a problem in restaurants where bosses are facing increased pressure over employment costs. Last month, an increase in minimum wage thresholds came into force. Bosses say they are also facing issues with tax, energy bills, and unpredictable public spending.
A survey by UKHospitality last month found one in five hospitality businesses feared collapse in the next 12 months.
Kate Nicholls, chairman of UKHospitality, a trade body, told The Telegraph: “Restaurants continue to face increasing cost pressures, from rising business rates to the cost of food, drink and energy going up. Hospitality has one of the highest cost burdens in the economy, and it’s crucial the government brings this burden down to support the sector.
“Throughout these challenging times, our staff continue to work tirelessly to deliver fantastic experiences to our customers, and 100pc of all tips or discretionary service charges go directly to them as recognition of their hard work.”
However, people commenting on social media about the story on Lucky Cat, first reported by The Times, appeared to have less sympathy.
David Kerry wrote: “Pay your staff properly!”
Christopher MacCulloch wrote: “Charge 20% more and just pay the staff of proper wage. It’s a disgrace in the US, making staff live on what is essentially charity.”
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