A high-end restaurant has scrapped its discretionary service charge. Lunar - within the grounds of World of Wedgwood at Barlaston - had included the charge of up to 12.5 per cent on its bills which diners could then pay or not.
But new 2024 rules meant the entire service charge now had to go directly to staff which added extra administration and cost to the business. Now Lunar has removed the discretionary service charge - and instead increased staff wages. It comes as Lunar is bracing itself for the 2025 national insurance hike following last year's budget.
Lunar entrepreneur Craig Wilkinson said: "When discretionary service charges were becoming common here they were layered on top of a minimum wage that was £6.70 in 2015. Fast forward to 2025, and that minimum wage has climbed to £12.
21. That’s nearly doubled in a decade, and it’s a good thing - cost of living has soared and staff deserve a fair wage. But the numbers don’t add up for businesses anymore.
"We can’t just sit still and let that cripple the hospitality industry. Not just for our company, but on a personal level I want to continue to enjoy going out to eat and drink at the great variety of hospitality options we have in our great country. “We’re not saying tips are off the table.
If a customer wants to tip - they absolutely can. That’s their choice, and it’ll go straight to the team as always. But we’re taking the pressure off that expectation for the customer.
The discretionary service charg.
