Rise of restaurant 'stealth tipping': From a 15% 'management fee' to a £2.99 'checkout' cost, how growing number of eateries across Britain are automatically adding US-style service charges onto your bills

Diners across Britain have hit out at the rise of American-style 'stealth tipping' as outlets introduce rip-off service charges to bills that take customers by surprise.

From 15 per cent 'management fees' in restaurants to 'dynamic pricing' in pubs, customers are having to pay extra amounts in a move branded 'cynical' by unions.

Service charges have become commonplace at restaurants in recent years with most diners now expecting to find at least a 10 per cent addition on their receipt.

But such charges are now 'surreptitiously' appearing on everything from pints of lager to takeaway coffees - with experts fearing Britain is sleepwalking into adopting America's tipping culture, where additions can often be as high as 20 per cent.

Among the recent notable discretionary charges brought in across the UK are:

• A 15 per cent 'management fee' at trendy dim sum chain Ping Pong; 
• L'Escargot in Soho having a 'service charge' of 15 per cent for all customers; 
• Italian restaurant Gloria in Shoreditch applying a 'checkout fee' of £2.99;
• A 2 per cent 'automatic charge' at The Scotsman Group bars and pubs;
• 'Dynamic pricing' at Stonegate pubs making a pint 20p more at weekends.

Consumer expert Jane Hawkes said the rise in such charges was 'concerning', while the Unite union said it was a 'cynical attempt' to circumvent fair tipping laws.

Asked to pay extra for standard service? Email: richard.percival@mailonline.co.uk 

Trendy dim sum restaurant chain Ping Pong recently abolished their tip system in favour of a US-style 15 per cent 'management' fee, sparking outrage from customers.

And now analysis undertaken by MailOnline has revealed several top restaurants and pubs are also adding on discretionary charges.

L'Escargot in Soho has a service charge of 15 percent. The amount sparked anger from customers, who described the rate as 'crazy high' and 'ridiculous'.

The iconic French restaurant, which serves the likes of £24 mushroom risotto and £56 steak, recently slapped on a £7.65 service charge on a £51 bill.

The bill was shared on Reddit. One user wrote in response: '15 percent is crazy high.'

One person took the time to compliment the poster's choice in wine, saying: 'Yup that's way too high, Also excellent wine choice!' To which the diner responded: 'Wine was good!'

The Scotsman Group, who own various bars and pubs in Scotland, have introduced a two percent automatic charge on beverages.

Drinkers wanting to buy a pint of Camden Hells Lager at one of their venues, The Grosvenor Cafe, would assume it costs £5.95. However, customers are charged £6.07.

It comes after Ping Pong, who have five restaurants in London, introduced their 15 percent discretionary charge to help 'maintain the brand experience'.

Ping Pong said the charge allowed it to raise wages to at least £12.44 per hour, allowing employees to have a stable income that would 'match earnings they would have received with service charge distribution'.

They said a final decision on whether to include a mandatory brand charge, increase product prices, or a combination of both, will be made ahead of the launch of its June menu.

Unite Hospitality union criticised the decision and said on X/Twitter: 'Workers have been compensated with £1 an hour above the minimum wage.

'This is a cynical attempt to circumvent the Fair Tips Law and deny workers £££s.'

Sacha Lord, chairman of the Night Time Industries Association, said: 'I completely disagree with this London restaurant chain. A service charge is for staff. 

'Replacing it with a 15 percent management fee to help 'maintain the brand experience' is just nonsense. Outrageous.'

Other venues who have been pictured adding 12.5 percent service charges include The Real Greek and Plume Wine Bar, part of Grays and Feather, in Covent Garden. 

At Plume Wine Bar, one customer paid an extra £2.16 service charge for ordering two glasses of red wine and some olives costing £17.30. The Real Greek added an £8.35 charge to a bill of £66.80.

Farmshop Bicester, which was recently visited by one shopper, also applied a 13.5 percent service charge worth £9.04 to a bill of £66.95. It is part of Gordon Ramsay's group of restaurants.

Stonegate, Britain's biggest pub chain, introduced dynamic pricing at 800 sites across the country.

This means pub-goers were charged more money for their drinks during 'peak trading' times, meaning a pint of beer could be around 20p more expensive at the weekend.

It comes ahead of a new law coming into force in July that will make it illegal for hospitality businesses to hold back service charges from their employees.

The Employment (Allocation of Tips) Act comes into force on July 1 which the Government says will put an estimated £200million more into workers' pockets.

Service or management charges have become common practice in the restaurant industry over the past decade with most diners now expecting to find a 12.5 percent 'discretionary service charge' added to their bill after a meal.

However, they are now appearing on everything from pints of lager to takeaway coffees, with some fearing Britain is sleepwalking into adopting America's tipping culture, where tips average around 20 percent.

Consumer expert Jane Hawkes said the increase in applying discretionary charges was 'concerning'.

She told MailOnline: 'The hospitality industry has undoubtedly had a rocky ride through the pandemic and companies are understandably looking at ways to maximise profits. 

'However, the increase in 'stealth tipping' is somewhat concerning with the concept itself indicating that charges are being brought in surreptitiously.'

She added: 'Replacing service charges with so called 'brand' or 'management' charges to line own pockets is completely unjustifiable and unacceptable. 

'The new Employment (Allocation of Tips) 2023 legislation will require the fair distribution of tips and service charges to staff. 

'The introduction of alternate charges is a blatant and shameful attempt to claw back some of the profits companies have been making by not doing so to date. 

'The most valuable resource a company has is its people. Failure to recognise and respect this is shortsighted and disappointing. 

'We could well see customers talking with their feet and choosing to take their custom elsewhere.'

Londoners have also been left fuming at the discretionary service charges.

Speaking on Reddit, one person wrote: 'I see [the service charge] is automatically applied to the bill everywhere in London but not so elsewhere in the UK or at least not so commonly. Basically, am I the a***hole for always asking them to take it off?

'They always ask why and I just say 'because it's discretionary'. But is that like a social faux pas/seen as stingy/mean spirited etc?

'Like as in if you dined with someone like that, would you think less of them?'

'I'm from a country where tipping isn't a thing. Eating out in London is expensive enough and besides, there's a minimum wage here unlike the States.'

Another person said: 'The service costs should already be included in the price of the food and the employer should pay their employees a decent wage and not leaving it up to any customer's discretion.

'But I think they know that people in the UK are way too polite and self conscious to ask to take it off so they feel like it's ok to do it.'

Other visitors to London noticed the same thing happening in various outlets across the capital.

One pointed out: 'Is it normal to get a service charge put on your bill. Went into a pub in Central London. A pint of lager, £6.25.

'It was not till I looked at my bill I noticed a service charge. Same in two restaurants I have been to. This does not happen up north.'

UK Hospitality, the trade body which has played a key role in pushing for tipping laws to be strengthened, said it would not comment on decisions made by individual businesses.

However, Kate Nicholls, chief executive, said: 'The spirit of the legislation which is coming through is all about making sure that customers know what they are being charged for.

'It is incumbent on all businesses to make sure that they are clear with their customers and staff about what charges are being levied for what purpose.'

A spokesman for Ping Pong said: 'Ping Pong wanted to create a fairer and more reliable system for their staff. As such, staff wages have been increased with the entry level salary being £12.44 per hour for all staff.

'The benefit to our employees will be stability of wages throughout the year, reducing the impact of seasonality.'

The Real Greek, The Scotsman Group, Farmshop Bicester, Grays and Feather and L'Escargot have also been approached for comment.