Zizzi cuts tips because of living wage

Zizzi Tips

The Italian restaurant Zizzi, has decided to cut the share of tips that waiters get at their chains, in a bid to compensate for the living wage which has come into play.

In a memo seen by the Financial Times, Zizzi have told waiters that they are now going to get 50% of the credit card tips and 12.5% service charge (where the previous ratio was 70:30).

The rest of the tips will be shared out between supervisors and kitchen staff.

A number of businesses have made changes as a response to the National Living Wage.

Staff who work at Eat are no longer going to be paid for lunch breaks, and Tesco said that they were cutting overtime and the like, as have B&Q and Caffe Nero.

Concerning the latter, staff at the cafe chain will no longer get a free lunch.

If you've been living under a rock, the National Living Wage will see the minimum wage being put up to £7.20 per hour.

Now, the government aren't particularly happy about this, and chancellor George Osborne has criticised businesses doing things like this, and last week, he said that this is "not in the spirit of the law… companies should be much more careful about their reputation."

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