Major media reports indicate that service charges of 15% are now standard across many UK restaurants. Gordon Ramsay's Lucky Cat in Mayfair and Bishopsgate, along with Bob Bob Ricard and Bebe Bob in Soho, all apply a 15% charge. Most of Ramsay's other eateries, including Savoy Grill and The River, also use this rate. The Wolseley in London adds a discretionary 15% service charge plus a mandatory £2.50 cover charge, while Fallow in St James's Market includes a 15% charge and a £1 donation to UN Women UK. Simpson's in the Strand similarly applies 15%.
Some establishments charge higher or lower rates. Gordon Ramsay's Lucky Cat imposes a 20% service charge on its Christmas and New Year menu. Marco Pierre White's English Chophouse adds 12.5%, as do Raymond Blanc's Brasserie Blanc, Heston Blumenthal's Fat Duck, and Rick Stein's Fish Restaurant. In Scotland, pubs owned by the Scotsman Group began levying an automatic 2% service charge on drinks ordered at the bar in 2024.
Service charge policies are set and determined by individual businesses, so it is up to them to determine the level of charge. Service charges serve a variety of functions, but primarily reward staff and provide a boost to employees' earnings, ensuring that venues can continue to provide the highest standard of service possible.
According to Metro - Main, Kate Nicholls, Chief Executive of UK Hospitality, said service charge policies are set by individual businesses and primarily reward staff. Corin Camenisch of SumUp told Metro - Main that the rise in charges is partly due to the Allocation of Tips Act, which mandates that all tips and service charges go to staff. Some experts suggest charges could move towards 20-25%, aligning with US tipping rates. The exact percentage of restaurants adopting 15% remains unclear, as does customer reaction to the trend.
The current economic climate presents challenges for consumers, hospitality workers and employers. Part of the reason for the rise in service charges is the Allocation of Tips Act, which dictated that all tips and service charges must be given to hospitality staff. The act aimed to create a fairer playing field for those in the service industry, meaning employees get a fair slice of their well earned