The Guardian | ‘Dumb mistake’: Mayfair club Annabel’s gave managers bonus from staff service charge by Sarah Butler
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Richard Caring, the owner of Annabel’s and other upscale London venues, admitted that the club made a “dumb mistake” by diverting more than £70,000 of pre‑Christmas service charge funds to pay bonuses for about 50 managers, sparking a staff revolt amid concerns over the opaque tronc system that underpins the low‑wage, zero‑hours contracts of roughly 280 hospitality workers who rely on tips to earn a living. After the Guardian’s investigation, Caring pledged to stop the practice, issued an extra £103,000 as a goodwill payment, and said the club would move toward transparent tip distribution, guaranteed 20‑hour contracts and compliance with new legislation requiring 100 % of service charges to be shared fairly. At the same time, Caring has announced the sale of a majority stake in his hospitality empire—including Annabel’s, Harry’s Bar, The Ivy group, Sexy Fish, Scott’s and J Sheekey—to Abu Dhabi’s Sheikh Tahnoon bin Zayed al‑Nahyan for a reported £1.4 billion, retaining a £1 billion stake and remaining president for four years. Despite the payment, many Annabel’s staff remain dissatisfied, planning a protest and demanding the London living wage of £14.80 an hour, greater transparency of tip allocation, and contractually guaranteed hours, while the Ivy chain faces a tribunal case over tip‑share calculations.
#RichardCaring #Annabel's #IWGB #hospitalityindustry #SheikhTahnoonbinZayedal‑Nahyan
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