1 in 5 consumers never pay service charge
When looking at the data in different regions, the figure jumps to 34% for those in the south-west, according to the latest Consumer Outlook from RSM UK, which surveyed 2,000 consumers.
Survey
Have you seen fewer customers paying an optional service charge?
Yes
81%No
19%
The figure was just under a third (31%) in the east midlands and a similar percentage (30%) in Yorkshire while it was at 25% in the north-west and 22% in the east of England.
However, one in three (33%) of London consumers always pay the service charge and it was similar in Northern Ireland (32%).
Consumer sentiment
In Wales, this was 31% while in the north-east it was 29% and a quarter (25%) of consumers in Scotland always pay the optional charge.
The research also showed almost a fifth (19%) of UK consumers were happy with the optional service charge system however, nearly half (47%) would prefer to tip at their own discretion.
Furthermore, 19% would prefer no tipping or service charge, with staff paid well and the service charge to be included in the menu price.
Squeezed households
RSM UK partners and head of leisure and hospitality Saxon Moseley said: “Tipping can be a contentious subject but it’s interesting to see the regional disparity between whether or not people want to pay the service charge included in the bill.
“Not paying the service charge may seem at odds with the UK’s reputation as being polite and unwilling to cause a fuss so it could be that the ongoing cost-of-living pressures are impacting behaviour.
“Cutting back on the service charge to make drinking or dining out more affordable could be the compromise squeezed households are taking.
“If this trend continues, hospitality staff are set to take home more cash once the new tipping act comes into play on 1 October, may find their uplift smaller than expected as some consumers withhold tips and service charge for exceptional service.”
Earlier this year, WMT Troncmaster Services managing director Peter Davies issued advice on how pubs can prepare for the new tipping laws, which are set to come into force in the autumn. He urged operators not to ignore the new laws, even if they already give tips to staff.
Davies also spoke with The Morning Advertiser on the Lock In podcast last year, looking at the bill and what it means for licensees.
