Financial Times FT.com

Tips change might raise restaurant costs

By Pan Kwan Yuk

Published: August 13 2008 03:10 | Last updated: August 13 2008 03:10

Restaurant owners could see operating costs rise by as much as 10 per cent following the government’s decision that tips should no longer count towards the minimum wage.

The claim comes from PwC, the accountancy firm, which argues that stopping the controversial practice of using gratuities and service charges paid by credit cards to “top-up” wages could have a big impact on operators of large bars and restaurant chains where the practice is most common.

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