Zizzi has become the latest company to cut back on staff benefits to account for the 50p rise in the minimum wage to £7.20.
In a note to staff seen by the Financial Times, the restaurant told waiters they will keep just 50% of the credit card tips and 12.5% service charge - the previous ratio was 70:30. The remainder is to be shared out among supervisors and kitchen staff.
Staff who qualify for a free meal have also had their choice reduced. They are now allowed to choose only a margherita pizza or a pasta with tomato sauce rather than select from a wider menu.
The group said that instead of giving free food allowances to anyone working at least a six-hour shift, it had introduced a cut-price menu for all workers. It still provides free teas, coffee and squash to all.
The change came days after the implementation of the government’s living wage on 1 April, which pushed up the minimum pay for workers aged over 25 by 50p an hour to £7.20, and months after the restaurant group removed an 8% administration charge from staff tips.
The coffee chain Caffe Nero recently cut free food for staff, while Waitrose and B&Q have stopped paying Sunday overtime to some workers. Last week, the chancellor said companies who made changes to staff perks were not acting in “the spirit of the law”.