‘Dumb mistake’: Mayfair club Annabel’s gave managers bonus from staff service charge
Summary
The private members club Annabel’s in Mayfair used over £70,000 from staff service charges to pay managers' bonuses, leading to staff complaints. The club’s owner, Richard Caring, called this a mistake and promised to change the system to be more fair and transparent.Key Facts
- Annabel’s staff pay includes an optional 15% service charge that goes to workers, plus a £3 cover charge kept by the club.
- More than £70,000 from the staff service charge was used to pay bonuses to about 50 managers.
- Many staff earn just above the minimum wage (£12.76/hour) and rely heavily on tips and service charges.
- The service charge is divided among about 280 workers through a system called a tronc, which separates card tips and cash tips.
- New UK law from October 2024 requires employers to share tips and service charges fully and transparently with workers.
- Richard Caring admitted the bonus payments from service charges were a “dumb mistake” and said the club will stop this practice.
- Annabel’s reimbursed staff an extra £103,000 in April as a goodwill gesture.
- Caring plans to offer contracts guaranteeing at least 20 hours a week and is selling a majority stake in his hospitality group for about £1.4 billion.
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