A letter to workers seen by The Guardian says that from 1 October existing waiters would receive between 25.45% and 29.4% of the service charge collected at tables they have served, depending on length of service, down from 37% previously – already a reduction from 45% early last year. Bar staff will get 17% of the service charge, down from 20%.
Newly employed waiters will receive just 17%, according to a letter from Gaucho’s troncmaster WMT Troncmaster.
Staff said they feared all waiters’ shares of the service charge would drop to that level in the new year, placing every worker on a similar level.
WMT Troncmaster wrote in a letter to employees that the service charge would now be shared with “staff located at non-public places of business such as head office and central production units. This may also include staff working at Gaucho restaurants who are provided by an agency but who are not directly employed.”
“The Troncmaster strongly believes that service charges are paid by customers in respect of their whole experience, and that all team members who play a part and impact on that experience should participate in, and receive a share of, the tronc funds.”
The business is currently headed by Baton Berisha, the former boss of the Ivy restaurant chain, which has also been criticised for its tipping practices.
Gaucho, which is part of Rare Restaurants, says its new system is fully compliant with the law and that head office employees would not benefit from the changes.
A spokesperson for Gaucho said: “The new Tronc distribution has been set by the independent Troncmaster following industry benchmarking across our Gaucho employees. The new distribution takes into consideration all our front and back of house colleagues delivering customer experience in our restaurants.
“It is an equitable solution for all of our excellent people. The employee costs borne by the Gaucho business remain as before and the business itself does not benefit in any way from the amended Tronc system.”
A further statement from the company adds: “The changes made by the independent troncmaster are being made to benefit and provide a fairer distribution for all staff who help to deliver the customer experience in the restaurant e.g. many kitchen staff, sous chef, commis, chefs, receptionists, kitchen assistants, and many other levels. Not head office employees.”