"There's been a reported rise in restaurants in the capital switching out their service charge for an admin fee - still 12.5 percent - that allows the eateries to circumvent new laws that require 100 percent of tips to be given to staff. Reported by London Centric, restaurants including L'Antica Pizzeria - which has branches in Hampstead and High Barnet - have introduced the new charge, the wording of which suggests they won't have to give tips to staff."
"The admin fee isn't the first example of a restaurant trying to squeeze extra money from its customers. The now closed dim sum chain Ping Pong started charging diners a 'brand charge' in 2024 just as the new tipping laws came in, while high-end eateries including the Wolseley, Sexy Fish and J Sheekey all have a £2 per person cover charge. One London resto - Bacchanalia in Mayfair - even charges an 'ambience fee'."
Many London restaurants are replacing the familiar 12.5% service charge with a 12.5% 'admin fee' designed to avoid laws requiring full tip distribution to staff. L'Antica Pizzeria branches in Hampstead and High Barnet have adopted the fee, with the charge wording implying tips will not be paid to employees. A waiter described the admin fee as covering card machine costs and general restaurant expenses. A Unite hospitality lead warned customers will assume the charge is a tip but that the practice is disingenuous and may breach the Fair Tips Act. Other venues have used 'brand', cover, or 'ambience' charges.
Read at Time Out London
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