‘No thanks, I’ll pass on the service charge’: Why UK diners are opting out of tipping

As more British diners refuse to pay for service charges that are automatically added to bills, are we at tipping point when it comes to being guilt-tripped into coughing up extra cash? The time has come to rethink how we reward good service, says Hannah Twiggs

Do you dutifully cough up, or do you, like more than a fifth of Brits, gleefully decline to pay an additional service charge? (Getty)

It’s a truth universally acknowledged that the British public are generally polite, often to the point of apologising when someone steps on their foot. Yet in restaurants across the UK, an uprising is brewing.

More than a fifth of diners (22 per cent) are boldly opting out of paying optional service charges, according to new research by RSM UK. It seems the national penchant for avoiding a fuss has finally met its match in the form of a sneaky 12.5 per cent now routinely tacked onto the bill.

It’s the tipping point, quite literally, where dining out in the UK becomes an exercise in ethical gymnastics. Do you dutifully cough up while secretly seething at being robbed of just leaving a few quid tip, or do you, like more than a fifth of Brits, gleefully refuse to pay it at all?

In the southwest, east Midlands and Yorkshire, the numbers jump even higher, to more than a third. So much for the stereotype of the overly polite Brit who’d rather drown in a puddle than cause a scene.

I’ve been that person – sitting there, sweating slightly as the bill arrives, shocked at how much the meal has cost and then realising a hefty whack of it is thanks to the “discretionary” service charge. I spend a few panicky minutes calculating whether the service merits the extra charge, but then pay it anyway even if I decide it’s not. It’s the stuff of nightmares, really. And frankly, I’m not alone.

Saxon Moseley, partner and head of leisure and hospitality at RSM UK, suggests that the rising cost of living might be driving this new frugality. With energy bills rocketing and inflation making everything from bread to a pint of milk feel like a luxury, the idea of handing over an extra 12.5 per cent for service that’s been, shall we say, less than stellar, feels like an unnecessary indulgence.

But there’s something else at play here too. Tipping culture in the UK has always been a bit like Marmite. Nearly half of us would prefer to tip at our own discretion without being coerced into a mandatory-feeling, yet supposedly optional, suggested charge.

Rory Cox, owner of The Prancing Stag in Jordanhill, Glasgow, is aware of this simmering resentment. At his restaurant, there’s no added service charge, just a fair split of whatever tips the customers leave behind.

“I’ve always felt it should be up to the guests if they wish to leave the staff a tip or not. Adding one on puts the customer in an awkward position if they then feel they don’t want to tip, if, say, the meal and/or service hasn’t been up to standard,” Cox says. It’s a refreshingly honest approach in an industry that can often leave customers feeling ripped off, whether they’ve enjoyed their meal or not.

Nearly a fifth of us would prefer no tipping or service charge at all, rather for staff to be paid well with service included in the menu prices (Getty)

Cox also notes the shift from cash to card tips, which means staff now wait until the end of the month to receive their tips – docked for tax and card processing fees. It’s a far cry from the immediate reward of cash in hand at the end of the night, yet another way the dining experience has become increasingly detached from the straightforward pleasure it once was.

And let’s be honest, we’ve all been there. You’ve just finished a disappointing dinner – your steak was overcooked, the wine list looked like it had been pilfered from a petrol station and the service was as sloppy. You’re about to pay the bill when you notice that little line at the bottom, suggesting you add 12.5 per cent for the privilege of enduring a subpar evening. Suddenly, the meal has become extraordinarily expensive for what it was and the idea of opting out doesn’t seem so unreasonable, does it?

Gary Townsend, chef and owner of Elements in Bearsden, outside Glasgow, knows this dilemma all too well. When he opened his restaurant, he wrestled with whether to apply an optional service charge or leave it off entirely.

“We pay the national living wage [£12ph] before tips, and don’t use service as a way of topping up wages either,” he says. In the end, he decided to add a discretionary 12.5 per cent, but with a crucial caveat: 100 per cent of all tips and service charges go directly to the staff.

What we have now is this awkward, convoluted system where service charges and tipping are tangled together, leaving diners unsure whether they’re paying for good service or simply subsidising a broken pay structure

“We feel this takes some hassle and ambiguity away from our customers and provides them with clarity around how our staff are paid too,” he explains.

It’s an admirable stance, but let’s not pretend all restaurants are run this way. The reality is that many use service charges as a sneaky way to supplement low wages, passing the buck to the consumer. It’s a tactic that leaves a bad taste in the mouth – but many restaurateurs would point to rising operating costs and the unfairness of one waiter being left a tip while kitchen staff go without, in their defence.

New legislation coming into effect on 1 October, which mandates that all tips, including service charges, be fairly distributed among staff, is supposed to level the playing field.

Kate Nicholls, chief executive of UKHospitality, certainly hopes it will make a difference. “These figures show that the overwhelming majority of consumers are more than happy to pay service charges in order to reward hardworking staff.”

And perhaps they are – if the service is exemplary. But shouldn’t good service be part of the job in the first place? Isn’t that what their wages are supposed to cover? It’s not like I’m tipping my postman every time he manages to actually deliver a letter.

Diners might ask, shouldn’t good service be part of the job description? So why do we have to pay extra? (Getty)

Shouldn’t a decent wage come with the expectation that the service will be good anyway? When I go out to eat, I expect a certain level of professionalism and courtesy – it’s part of what I’m paying for when I see those often eye-watering prices on the menu.

Tipping, in my view, should be reserved for those rare occasions when the staff have gone above and beyond the call of duty. Maybe they’ve helped create a special moment by accommodating a surprise celebration, stayed open late because you lost track of time, or perhaps they’ve graciously handled a group of diners who’ve had one too many. That’s when a tip feels truly deserved – when it’s a token of appreciation for something extra, not a top-up for merely doing the job they’re already paid to do.

What we have now is this awkward, convoluted system where service charges and tipping are tangled together, leaving diners unsure whether they’re paying for good service or simply subsidising a broken pay structure.

Nearly a fifth of UK consumers would prefer no tipping or service charge at all, opting instead for staff to be paid well with service included in the menu prices. It’s a notion that’s both radical and simple.

As one diner, Tsara Taylor, I spoke to astutely puts it: “Service charge is a necessary evil in much of the industry as a way to compete on wages because almost everyone does it. We need a mass movement of operators to change, or at least a couple of big brands to go first.”

So next time you’re handed the bill with that little extra at the bottom, don’t be afraid to pause and consider your options. If the service was exceptional, go ahead and reward it. But if it wasn’t, don’t feel guilty about saying “No, thanks”.

After all, dining out should be a pleasure, not a guilt-ridden obligation. Maybe one day, we’ll all look back on service charges as a quaint relic of a bygone era – like smoking in restaurants or jellied eels. Until then, here’s to tipping at our discretion and making dining out just a little less awkward for everyone involved.

Do you agree? Are you at tipping point with discretionary service charges? Let us know