Gordon Ramsay one of the first celebrity chefs to bring US-style 20% service charge to London
Gordon Ramsay has added an optional 20 per cent service charge to diners’ bills at his prestigious Lucky Cat restaurant in London, in the latest example of Britain’s move towards a US-style tipping culture.
The fare has been added to the Asian-inspired restaurant’s New Year’s menu; customers were currently being charged £138 for a Japanese a5 sirloin brisket or £50 for a spicy lamb chop.
A chef’s selection of sushi already costs £140 for customers, who can enjoy 350-degree views of London from the plush surroundings of the restaurant on the 60th floor of 22 Bishopsgate skyscraper.
At the bottom of the menu, in small print, it said: “A 20 percent optional service charge will be added to your bill.”
Mr Ramsay, who opened Lucky Cat in 2019, typically charges 15 per cent for most of his businesses.
That rate is higher than restaurants owned by other celebrity chefs, including Marco Pierre White, who typically charge 10 percent. Rick Stein charges 12.5 per cent at his Seafood Restaurant in Padstow.
Niaz Caan, who runs the award-winning Paro in London’s Convent Garden, where diners face a 12.5 per cent discretionary service charge, said the 20 per cent charge was too high. He said the system was needed to promote high standards of service and that customers could opt out once they paid.
Saying that he thinks restaurants charge more to cover costs or because they have difficulty attracting good staff, the chef said: “I think 12.5 percent is okay, but once you start going to 15, 16, 20, I think it’s exorbitant.” But he added: “If it’s New Year’s Eve, then maybe there’s a reason to do it.”
The introduction of the 20 percent service charge comes as more bars and restaurants automatically add the optional tip to customers’ bills, rather than leaving it up to them to decide how much to leave in the first place.
This amount also reflects the situation in America, where tipping culture is more widespread. People pay extra for things like drinking at bars and carrying luggage at hotels. A 20 percent tip is added to bills in the country.
The payments are generally expected to be in addition to the waiters’ below-average salaries.
Mr Caan said he had seen compulsory service charges being added to customers’ bills in the UK, particularly on the West Coast, but he did not believe the US style would fully come to the UK.
He said: “I know the culture in America, even in high wage states like New York the tipping culture is still pretty ridiculous. I don’t think the UK will ever get to that point because it’s based on completely different cultures.” He added that introducing compulsory charging “defeats the purpose” of encouraging staff to provide good service.
This also illustrates a problem in restaurants, where patrons face increasing pressure on employment costs. The increase in minimum wage thresholds came into force last month. Bosses say they also face problems with tax, energy bills and unpredictable public spending.
A survey by UKHospitality last month found one in five hospitality businesses fear collapse in the next 12 months.
Kate Nicholls, chief executive of UKHospitality, a trade body He told The Telegraph: “Restaurants continue to face increasing cost pressures, from rising business rates to rising food, drink and energy prices. Hospitality is one of the highest cost burdens in the economy and it is crucial that the government reduces this burden to support the sector.
“During these challenging times, our staff continues to work tirelessly to deliver great experiences for our customers, and as a reward for their hard work, 100 percent of any tips or discretionary service fees go directly to them.”
However, people commenting on social media about Lucky Cat’s story, first reported with TimesHe turned out to be less sympathetic.
David Kerry wrote: “Pay your staff properly!”.
Christopher MacCulloch wrote: “Charge 20% more and pay staff appropriately. Allowing staff to live off what is essentially charity is a disgrace in the US.”
