Chinese restaurant chain Ping Pong sparks row by scrapping tips and bringing in 'outrageous' 15% 'brand charge'
8 April 2024, 09:04
A popular chain of Chinese restaurant has caused a row by bringing in a "brand charge" of 15% of the bill.
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Ping Pong, which operates five central London restaurants, said the new charge would help pay staff higher wages.
Tips can no longer be added when customers pay the bill by card, but can be given in cash.
Some customers have taken issue with the new system, which comes only a few months before a law comes into effect meaning that all tips have to go to staff.
One customer at the South Bank location said: "Delicious food but service was slower than any of the branches I’ve been to before. The most outrageous bit is they add a 15% brand charge to your bill.
Read more: Spare me the American-style service charge - I’ll decide whether you deserve a tip
"I thought it was a service charge at first but queried it and was told it was a brand charge and service had to be paid in cash on top! Needless to say we asked for this to be deducted and I did not then feel inclined to give them a service tip.
Another said: "They have started charging the "brand charge" instead of service charge. BEWARE: this is not the same as service charge...
"To fight this request the charge to be removed. If you want to tip, tip directly to the waiter using cash (the old style)."
The charge is meant to cover "costs associated with operating a franchised brand and delivering the dining experience to brand standards", Ping Pong said.
The chain said the brand charge would eventually be incorporated into menu prices.
Ping Pong's lowest paid workers are getting a pay increase from £10.42 to £12.64 per hour. The minimum wage for people aged over 21 rose from £10.42 to £11.44 at the start of April.
According to the Living Wage Foundation, a real living wage in London is £13.15 per hour.
Unite, the union, said the move was a "slap in the face" for workers.
Organiser Bryan Simpson said: "Ping Pong's decision to effectively deny workers tips by cynically changing the service charge to a 'brand charge' in order to circumvent the new fair tips legislation is one of the most blatant examples of tips theft that we've come across as the union for restaurant and bar workers," he said.
"No matter what senior management call it, customers will assume that this 15% is a tip that should go to workers, but it won't. That is completely disingenuous."
Ping Pong owners AJT Dimsum said: "The business is very proud of the reputation it has as a good employer and, despite the many recent headwinds, has acted with integrity and honour, with a high priority placed on employee retention.
"The benefit to our employees will be stability of wages throughout the year, reducing the impact of seasonality and the higher wages will also mean improved access to financial products such as loans and mortgages."
