Tipping Trauma! When Will the Hospitality Industry Learn?

WORDS David Woodward

“Anyone can be a waiter, but to be good at it is an art.”

This is what my restaurant manager told me when I took up my first position in a five-star hotel in Switzerland. Why haven’t the hospitality industry and the restaurant-going public heeded these words in the intervening thirty years?

Having worked in the industry in the UK, Portugal and Switzerland, I am increasingly alarmed at how many companies and employers abuse the whole system. In an industry where the demand for quality food and service is increasing, why is hospitality as a whole still viewed as providing menial labour for unskilled workers? Thus, it was with great interest that I read that the laws on tipping would be changing in the UK, where it is now law for all companies/ restaurants to give their staff 100% of any tips.

With guests’ expectations becoming ever more demanding and a decreasing number of youngsters entering hospitality, surely the industry must find ways to entice the next generation and not leave them disillusioned before they even start.

Yes, there are exceptions to the rule and I have worked in some top-class establishments which have valued their staff and where the rewards have been high, but, in general, when I hear the words tips, service charge or tronc, I want to pull out what little hair I have left. Let’s make a few points clear: a service charge is not a tip. It usually contributes to almost the entire amount of an employee’s salary. 

I worked in a famous restaurant in London where my salary was a measly £2,000 a year; the rest of the salary came from the service charge. I was guaranteed a set amount per annum, but the service charge far exceeded that amount, and the company never passed the excess on. This was a common practice that the new law is trying to rectify.

In many catering jobs, I have been introduced to the tronc system, where all the tips are divided between the staff. But what happens if your co-workers aren’t pulling their weight? You are then mightily annoyed that you have to share this tronc equally. Worse still, I have often found that the lion’s share of the tips usually go to the owners or the management, who already receive a generous salary.

I recently attended a recruitment day at a prestigious resort in the Algarve. The resort is worth billions and isn’t exactly relying on the same income as your local piri-piri restaurant! Despite this, I was informed that waiting staff are paid €1,100 euros a month, barely enough to cover local rent, but they did offer employees magnificent discounts. Twenty-five per cent on a round of golf that exceeded two hundred euros. Very generous on a wage of just over one thousand euros. The added bonus was that the management ‘controlled’ the tips, whatever that meant. Now, all the Portuguese staff I have met are courteous and friendly, and they excel at providing customers with outstanding service, but many are now being forced to look for employment in other industries or locations, as they are unable to afford even the most basic of living standards.

I also read about tipping in the States with interest. No, I haven’t worked there, but, apparently, 20 per cent is standard and if it isn’t forthcoming, you are likely to be chased down the street by a pretty disgruntled employee. Don’t get me wrong, I’ve always loved receiving tips and often had very generous ones, but do I think it’s my right to have one? No. That’s down to the guest. My view is that sometimes you win and sometimes you lose, but the restaurant/ hotel should pay a decent wage; it is not the duty of the guest to make up for low pay.

The one time I saw a system that benefited everyone involved was in a renowned restaurant in Zurich. You received a fair wage a percentage of sales, and you kept your own tips. You also paid for your mistakes. The management was paid well, as were the chefs, and they didn’t receive tips. The incentives were so great that no one was ever late (as you wouldn’t have a job if you were); we all queued up for extra shifts, the tips were substantial as there was no service charge, the staff stayed forever and the owner was a very wealthy man.

Most people I know who work in the industry do so because they love it, so I hope the industry, both in Portugal and abroad, wakes up before there is no one left to serve and starts valuing those individuals who sacrifice so much.

David Woodward is a British author (Confessions of a Waiter) who worked in the hospitality industry in the UK, Switzerland and Portugal for more than 30 years. Eventually, David relocated to the Algarve, where he enjoys the sandy beaches, the sunny weather, and his passion for writing.

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