British Hospitality Association publishes tips code

The British Hospitality Association has published its code of practice for restaurant service charges and is urging all restaurants and hotels to adopt it as soon as possible.

The code, drawn up by the BHA after discussion with the Department for Business, asks restaurants and hotels to make it clear to their customers – via a written note or on the company’s website – how service charges are distributed to staff.

BHA chief executive Bob Cotton recommends that companies provide as much detail as possible about their policy to help rebuild the industry’s reputation and avoid the voluntary code from becoming mandatory.

"We've had too little information in the past about the way the service charge is collected, what it is for and who receives it, This has given rise to widespread criticism which has damaged the industry's reputation,” he said.

"The Code will ensure that restaurants make crystal clear how they distribute the proceeds of the charge, who gets it and what percentage, if any, is kept by the restaurant to cover legitimate costs.”

Restaurants have come under intense scrutiny from the public since the government decided to close the loophole which allows them to top up wages with tips.

Chef and restaurateur Richard Phillips is the latest to be put under the spotlight. Yesterday's Observer published details of the tipping policies at two of his Kent restaurants.

The newspaper's Cash section revealed that at Thackeray's and Hengist optional service charges paid for by debit or credit card went to the company not to staff, while cash tips were shared out. One waiter who worked for the chef told the newspaper he’d only made £6.72 in tips in one week.

See the BHA's Code of Practice on Discretionary Tips and Service Charges​