LONDON, UK – A coalition of UK hospitality leaders has issued a formal statement warning that the American practice of discretionary gratuities is undermining the British service model. In a letter to the government, the British Hospitality Association (BHA) described tipping culture as “out of control” in the United States and urged ministers to protect the UK’s system of inclusive pricing.
The BHA, representing more than 40,000 businesses, argues that the proliferation of tipping prompts on card machines and suggested gratuities in restaurants is creating confusion for customers and staff. The association points to research indicating that US consumers now face an average tip of 20-25% on top of the bill, a trend that has begun to influence British establishments, particularly in London and other tourist hubs.
Kate Nicholls, chief executive of UK Hospitality, said: “The British model has long been one of transparency: the price you see is the price you pay. We risk importing the worst elements of the American system, where employees rely on tips to make a living wage and customers are pressured into additional payments. This is not the service culture we want.”
The warning comes as data from the Office for National Statistics shows that the number of UK hospitality workers earning below the living wage has risen by 12% over the past three years, partly attributed to the assumption that tips will supplement low base wages. In contrast, the traditional British model integrates service costs into the listed price, allowing for straightforward customer experience.
The BHA calls for legislation to ensure that any service charge is automatically included in the menu price, and that optional tips are clearly voluntary. They also recommend a ban on suggested tip amounts on payment terminals, a practice they say creates social pressure akin to that in the US.
Professor James Faulconbridge, an expert in labour practices at Lancaster University, noted that tipping systems often serve to shift risk from employers to employees. “In the US, tips insulate businesses from paying higher wages, making workers dependent on customer generosity. The UK should avoid this model, which can exacerbate income inequality and create an unpredictable income stream for staff,” he said.
However, some restaurateurs argue that tipping can reward good service and boost earnings. Thomasina Miers, co-founder of the Wahaca chain, said customers who wish to tip should have that option. But she added, “It should never be expected. We must keep the British sense of fairness: fair wages, fair prices.”
The government has so far declined to intervene, stating that it is a matter for individual businesses. But the BHA insists that without regulation, the trend will accelerate, particularly as major US chains expand in the UK. “We are at a crossroads,” Nicholls said. “We can preserve our system or allow it to be eroded by a culture that creates anxiety for customers and instability for workers.”
As the debate continues, the BHA plans to launch a public awareness campaign titled “Keep It Clear” to promote inclusive pricing and voluntary tipping. The campaign will target both businesses and consumers, encouraging transparent practices that protect the integrity of the British service industry.
