Ping Pong, a popular dim sum franchise in London, has made headlines by eliminating tipping and instituting a 15% ‘management fee’ instead.

This move is seen as a response to impending legislation that will prohibit hospitality businesses from withholding service charges from their staff.

Reasoning Behind the Change

The restaurant justifies the introduction of the ‘brand charge’ as a means to maintain service standards and cover franchise-related expenses.

By replacing tipping with a fixed fee, Ping Pong aims to ensure fairness for its employees while providing a stable income.

Mixed Reactions and Criticisms

While some customers appreciate the transparency of the new policy, others have criticized it as unjust and likened it to ‘moral blackmail.’

Critics argue that discretionary charges should not be mandatory and express skepticism about paying for a company’s operational costs.

Support for Employee Rights

Advocates for workers’ rights commend Ping Pong’s decision to allocate the entirety of the service charge to employee wages.

The move aligns with the upcoming Employment (Allocation of Tips) Act, which aims to ensure that employees receive their fair share of gratuities.

Navigating Customer Feedback and Future Plans

Ping Pong faces customer backlash over the introduction of the ‘brand charge,’ with some patrons questioning its necessity and fairness.

The restaurant is considering whether to make the fee mandatory and plans to adjust product prices accordingly, striving to balance customer satisfaction with employee welfare.

Commitment to Fair Wages and Stability

In defense of its decision, Ping Pong emphasizes its commitment to creating a fairer and more reliable wage system for its staff.

By raising wages to a minimum of £12.44 per hour, the restaurant aims to provide employees with stability and mitigate the impact of seasonal fluctuations in income.

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