2023 UK Employment Act requires 100% tip distribution, potentially increasing pint prices in hospitality industry.

New legislation in the UK, the Employment (Allocation of Tips) Act 2023, requires hospitality businesses to distribute 100% of customer tips and service charges to staff, leading to a potential increase in the average cost of a pint to over £5. According to research, 74% of the industry will apply a service charge as standard for drinks, with 52% planning to add a charge of up to 10%. This could result in the highest average cost of a pint with a 10% tipping charge being £7.15 in London, followed by Belfast at £6.71 and Brighton and Hove at £6.60.

June 04, 2024
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