UK restaurant chain Côte pockets staff tips

The restaurant chain Côte has been pocketing  the entire service charge paid by customers, instead of giving it to staff as tips.

The 12.5-per cent charge automatically added to bills as staff service charge, went directly to the company, while the staff was told to say the charge went to workers when asked by customers.

According to Côte, cash tips could either be kept by the waiting staff or shared, but a staff member's account of what really happened to tips contradicted the company's policy.

A server told the Evening Standard, ''One night I was waiting a large group and had to split the bill for each guest. At the end they left a £100 cash tip, but I was forced to hand it over to my manager and never saw that money again.''

The company however told The Telegraph, they would investigate instances that deviated from their stated tip policy and "disciplinary action (will be) taken where appropriate".

The service charge was optional, but it was added to the bill automatically, and diners needed to ask to have it removed.

The chain, which operates 72 restaurants across the country, paid staff a wage of £7.50-£8.

The staff member said, ''We are told by management that we don't get to keep the service charge because we get paid more than the minimum wage, so we should be grateful, but most of us would prefer earning the minimum wage and taking home our tips for the hard work we do.''

Defending the practice, the chain claimed it enables it to pay staff an hourly rate of around £7.50 - £8, above the national minimum wage of £6.50 for over 21s.

Côte had emerged as a popular high-street restaurant thanks to its affordable lunch-time menu and high food and service standards.

The service charge was always optional but as it was added to the bill, a customer would need to explicitly ask for its removal to avoid paying it - or if they wanted to tip with cash.

According to Côte waiting staff had the option of keeping any cash tips left on top of the service charge or putting it into a general pot to be shared with other workers.

Iain Wright MP, chairman of the Business Select Committee, termed the restaurant's tip policy 'unacceptable'.

He said he would be raise the issue with the select committee and would be eager to find out how widespread the practice was.