MPs condemn Côte for keeping staff tips and threaten inquiry

Pressure was mounting on restaurant chain Côte today to change its policy of taking the entire service charge paid by diners rather than giving it to staff as tips, with MPs threatening the industry with a parliamentary inquiry.

Evening Standard revealed last week how the firm, which has 72 restaurants including 30 in London, keeps the 12.5 per cent charge it automatically adds to every bill, and is ordering staff to tell customers who ask that it is shared between workers.

Côte has defended the practice, saying it allowed restaurant staff to be paid an hourly rate of about £7.50-£8, above the national minimum wage of £6.50 for over-21s.

But politicians have demanded Côte change its policy, so staff take-home pay does not depend on customers’ tips. Labour MP Jo Stevens, a member of the Commons Business Select Committee, said she would be pushing for a parliamentary probe into the practice of restaurants keeping tips.

She said: “The price that customers of Côte pay includes a hefty mark-up that resulted in the £16.3 million profit it made last year.

“Now we discover, thanks to the Evening Standard, that a chunk of that profit was paid by customers as service charge that they expected to go straight to waiting staff for good service. It’s a despicable practice and the excuse from Côte that they would otherwise have to pay their staff a lower hourly rate simply won’t wash.”

MP Peter Kyle, another member of the committee, said he would be raising the issue when it meets again next month.