Whitbread: All tips go to staff

Whitbread has defended its record on service charges in the wake of the government's call for pubs and restaurants to distribute all tips to staff.

Whitbread, operator of the Beefeater, Brewer's Fayre and Table Table brands, as well as the Premier Inn and Costa coffee chains, said in a statment it "has an ongoing commitment to providing its 33,000 employees with fair working conditions", insisting the company "does not, and has never, included service charge on customers' bills."

Any tips, whether given in cash or paid by card, go directly to the employee for which they are intended, said the company.

The government announced yesterday that from next year tips will no longer be able to count towards payment of the minimum wage.

At the same time, it said employers would be "encouraged" to distribute ail tips to staff. Some restaurant chains have been criticised for holding back a percentage of tips to cover administration costs.

Meanwhile, the Greene King-owned Loch Fyne restaurant chain has revised its pay policy, putting in place what it said were "the small increases necessary to ensure that all employees will be paid at least the national minimum wage before tips."

The seafood chain, acquired by Greene King last year, had been singled out for criticism by the media, with reports contrasting its ethical sourcing policy with the way staff wages were topped up using tips.

Loch Fyne managing director, Mark Derry said: "We try to be responsible in all areas of our business and the treatment of staff is as important an issue to us as our sustainable approach to the food we serve.

"This pay review affects only a relatively small number of our staff but it is an important decision and one that we hope will help clear up concerns around our staff policies."