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Morning Briefing for pub, restaurant and food wervice operators

Mon 22nd Apr 2024 - New tipping laws pushed back to October as government publishes final code of practice
New tipping laws pushed back to October as government publishes final code of practice: New tipping laws set to come into force have been pushed back from July until October this year to allow businesses more time for implementation. It comes as the final code of practice of the Fair Tips Act was officially unveiled and laid before parliament by the Department of Business and Trade today (Monday, 22 April). Aimed at enhancing fairness and transparency, the new tipping legislation mandates that all tips and service charges be distributed to staff without any deductions. It also requires businesses to implement a clear, equitable distribution system, ensuring that employees receive their full share of gratuities. This move by lawmakers reflects a growing recognition of the hard work put in by industry staff and is designed to protect their earnings. The new code introduces significant changes aimed at enhancing transparency and fairness in the distribution of tips across the hospitality industry and other sectors. Highlights of the final code of practice includes clarification on agency workers. The updated legislation clarifies that for the purposes of tip allocation, the “employer” is regarded as the business that hires the agency worker. If tips are passed to agencies for payment to workers, the agency retains the obligation to ensure no deductions from tips. This ensures that agency workers are treated equitably in line with directly employed staff concerning tip distribution. The code now includes hours worked during the period that tips were received as a factor to consider in businesses implementing a “fair” distribution under the legislation. The code also strongly advises employers to engage with their workforce in developing tipping policies and reinforces that team members’ view of “fairness” will be a consideration. Tips collected digitally, directly from customers to staff, are not considered employer-received tips and are out of scope, subject to correct operation of these platforms. The code also includes strengthened provisions to prevent any form of discrimination in the distribution of tips, ensuring fairness for all employees regardless of background or characteristics. Cashless tipping platform Tipjar has been involved in the consultation of the final code of practicer, providing industry insight to support the Department of Business and Trade to shape the code and ensure it effectively addresses both worker and business needs. Ben Thomas, chief executive at Tipjar, said: “This important code of practice clarifies employers’ responsibilities as they pass tips to their hard-working teams. As a business that exists to help employers distribute tips on the same principles of fairness and transparency, we are confident that this Act will support millions of tipped workers across our industry, and level the playing field for businesses across these sectors. We’re excited to support employers in leveraging the opportunities this will present, as we build a more fair and transparent future.”

Propel’s latest Multi-Site Database to be released on Friday with seven category segmentation including 910 operators from the casual dining sector: The next Propel Multi-Site Database, produced in association with Virgate, providing details of more than 3,000 multi-site operators, will be released on Friday (26 April), at midday, to Premium Club members – and companies are now searchable in seven main segments. The database features, 910 (29%) operators from the casual dining sector, 765 (25%) pubs and bars, 510 (16%) cafe bakery, 420 (14%) quick service restaurants, 250 (8%) hotel, 190 (6%) experiential leisure and 53 (2%) fine dining. It is updated each month – this edition includes 23 new companies and brings the total to 3,098. New additions in the casual dining sector include Sri Lankan concept Kolamba created by husband-and-wife team Eroshan and Aushi Meewella. They are launching their second site following the opening of their first restaurant in Soho in 2019. Plus, award-winning chef Adebola Adeshina is forming the Heritage Social Group, under which his existing sites, The Chubby Castor and The Yard Castor alongside his new ventures in Grantham, Lincolnshire will sit. Premium Club members also receive access to five other databases: the Turnover & Profits Blue Book, the New Openings Database, the UK Food and Beverage Franchisor Database, the UK Food and Beverage Franchisee Database and the Who’s Who of UK Hospitality. Plus, all members will be offered a 20% discount on tickets to five Propel paid-for events – The Excellence in Pub Retailing Conference (14 May), Social Media for Profit (18 July), the Talent and Training Conference (1 October) and Restaurant Marketer and Innovator (two days in January 2025). Operators are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club members receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club members will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club members also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or a supplier. Email today to sign up.

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