Two thirds of diners don’t know where tips go

5th March 2010, 3:30pm

Figures released by the Department for Business, Innovation and Skills (BIS) show that nearly two thirds of adults who leave a tip don’t know where their money goes, with 95% expecting it to go to staff and not business owners.

The research also shows that:

• nearly four in five consumers (79%) tend to tip, with the figure rising to 91% in cafes and restaurants;

• only a fifth of adults ask what happens to their tip (21%), with just under two fifths (39%) not feeling comfortable in doing so; and

• the majority of adults are more likely to go back to a business that does provide tipping information (66%); and that allows staff to keep the majority of their tips (73%).

The findings come as the Department for Business, Innovation and Skills (BIS) launches a campaign to encourage more consumers to ask the question 'Who Gets the Tip?' so they know what is happening to their money.

Employment relations minister Lord Young said: "Consumers should never feel afraid to ask 'Who Gets the Tip?' – whether it's at the hairdressers, a hotel or restaurant. It's their money and they have a right to know what happens to it. Businesses also have a responsibility to provide clear information to their customers.
"Our research shows this makes good business sense as consumers are more likely to re-visit restaurants where tipping policies are displayed."

Pizza Hut, TGI Friday's and a number of other businesses within the hospitality sector have already adopted the voluntary Code of Best Practice on Service Charges, Tips, Gratuities and Cover Charges.

Now six months on from its launch Government wants more businesses to follow suit.

Related Articles:

• 12 Apr 2010 - Pizza Hut targets pay day diners in nationwide ATM campaign

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