URocked’s Post

What is a TRONC? 🤔 We work with lots of businesses across the industry and you'd be surprised by the amount of people who have never heard of a TRONC So what is a TRONC and how does it impact you... A TRONC is a special pay arrangement used to distribute tips, gratuities and service charges. A TRONC system is set up to ensure all staff members, including those who may not typically receive tips (such as back-of-house, and non-customer-facing members), get their fair share. TRONC systems are common in a wide range of hospitality businesses such as restaurants, bars, hotels, cafés and more. The agreement also introduces advantageous benefits such as National Insurance exemptions for the business, and the team. With the new legislation coming into effect very soon, it is important to be aware of changes around tipping, especially if you already operate a TRONC. Here are some key changes: 🔔 100% of tips are to be distributed no later than a month after they have been received, this means no admin costs are to be deducted from the TRONC pot. 🔔 Employers must have a tipping code of practice/policy and this must be available to all employees, including agency staff. 🔔 A business must keep a record of tips received and distributed for three years. 🔔 Employees are entitled to request to see how the business receives tips and their allocation but not their peers. If you are unsure of how this change in legislation could affect your business, drop me a message and I am more than happy to provide guidance. #tipping #servicecharge #hospitality #culturefirst #legislation #codeofpractise #hospitalityindustry #hospitalitytech #restaurant #restauranttips #customerservice #nisavings #employeebenefits #employeefirst #restaurantexcellence #gratuities #tippingbill #hospitalityexcellence #grtfl #technology #tronc

Tips. Gratuities. Service charges. All designed, in theory, to reward a person providing a commendable level of service, typically front of house restaurant staff. Some employers have historically 'withheld' tips from their staff and used them to fund the business instead. The question of whether employers should pay a decent living wage to begin with, so that tips become a convenient amount of extra money instead of an essential component of meeting living expenses, is for another day. In the UK, the Employment (Allocation of Tips) Act 2023 received Royal Assent on 2 May 2023 and is scheduled to come into force during 2024. Under this legislation, employers will be banned entirely from withholding tips from their employees. This is expected to result in staff earning an estimated £200 million extra a year, a non-negligeable contribution to the cost of living. How are businesses reacting to this? By changing the definition of tips, predictably. The Ping Pong chain of dim sum restaurants has begun adding a 15% 'discretionary brand charge' to its bills. The restaurant's website defines this as follows: 'A discretionary management fee of 15% is added to your bill. This fee covers the costs associated with managing and supporting the restaurants, as well as maintaining the brand experience to our company standards.' In other words, they are angling for a cheeky 15% price rise and making it abundantly clear that none of this extra money is going to the staff. It will be interesting to see how the new legislation deals with this type of scummy behaviour. #Tips #Service #CustomerService

🗣Autumn Budget💼 .. are you listening? How does it affect you? 💰40% Business Rates Reductions for Retail & Hospitality 🍻Reduction in Beer tax (Draft alcohol tax down only 1.7%) 💸Increased Employee allowances (Down to £5000) 🤼But ... NI up 15% for some bigger businesses Is this enough to support our vital #hospitality industry? Is this enough to support our #economy? This time last week I was at the Hospitality Tech Expo, where operators and suppliers discussed some of the barriers they have to tackle, on a day to day basis. Thankfully, the public is continuing to be #loyal and support their favourite hospitality and retail brands. There will be many arguments for and against any budget announcements. The key for #hospitality is to continue providing the fantastic offerings and customer services that have always been associated with #restaurants #hotels #cafe #bars and more. TheLoyaltyCo. and TLC Solutions will always be on hand to support operators and help drive growth despite the hurdles we all come across. #autumnstatement #parliment #digitalmarketing #websitedevelopment #appdevelopment #ITsupport #EPOS #Growth #Teamwork

Late payments, lack of flexibility to make changes, hours spent on manual tasks? All of these are common challenges finance functions face, particularly in the hospitality industry. Join our webinar with Tottington Manor Hotel, where they talk about how they use Modulr to automate their accounts payable, and how this saved them time & money. 📢 Register here: https://lnkd.in/eaAtDiAv

📣 With the Employment (Allocation of Tips) Act 2023 taking effect on October 1st, many hospitality operators will be pushed to breaking point. Our latest research shows that 83% of venues expect to incur additional annual costs of at least £12,000 to comply, impacting an estimated 118,690 UK businesses. The Act will require 100% of customer tips and service charges to be distributed to staff, with no exceptions beyond standard-rate tax deductions. It also requires all hospitality businesses to have a written policy on tipping practices available to staff. 📰 Our findings, featured in Daily Express, CLH News, and Yahoo, reveal that only 28% of operators are currently compliant, sharing tips without deductions. Meanwhile, 63% of businesses currently take a percentage of tips, with 29% using these funds to cover costs like processing fees. Read more: https://lnkd.in/enM78fRn https://lnkd.in/eMmYY8Qk #hospitality #tippingact #UKhospitality #tipping #businesscosts

Read our latest report on allocation of tipping. This is timely with the new employment act legislation coming out on 1st October. What do you think about this new legislation?

Just completing a Revenue audit for a client. The topic is BIK on staff entertainment. Revenue's view is the following are subject to BIK: 1. Bringing lunch into a monthly management meeting means BIK 2. Bringing cakes into a Townhall for staff means BIK 3. Providing tea, coffee, biscuits to staff is subject to BIK 4. Bringing lunch in for all staff once a month is subject to BIK - even if the lunch is for a business meeting 5. You are allowed 4 all inclusive staff events a year which are not subject to BIK. I must have missed this in the legislation when I reviewed it..... A night out in the pub for staff is considered one of the events. Sandwiches provided for a business lunch is also considered another event. If you work for a big enough company who has a canteen (such as the Revenue) then no BIK on food provided. If no canteen then BIK on any food provided. Peter Burke Can you bring out the "SME test" for this one and let me know what it says? Jack Chambers A simple change of legislation in the budget would protect small businesses - this is what was promised in May of this year - "to support small businesses" Its hard enough to keep staff at the moment and these small extras help - but not if they are going to cost double. Ibec Cork Business Association Simon Harris

https://lnkd.in/edSC9zi8 UK laws are changing in relation to how Tips and service charges are handled: The key points of the legislation and code of practice are as follows: - Employers must pass on 100% of tips and service charges to their teams. - Tips that are outside the scope of the legislation are those where the employer has no oversight of the transaction or distribution. - All funds must be distributed to employees by the end of the month following their receipt. - Hospitality operators are required to have a written policy detailing how tips are accepted and distributed, which must be made available to all team members. - Policies should be agreed upon with teams and must be ‘fair’. - Agency workers are entitled to a proportion of tips. Once tips are passed on to the agency that provided the worker, the agency is legally responsible for ensuring the money reaches the worker in full. - Service charges received at one site within a group cannot be combined with those generated at another site and can only be shared among employees who worked at that site. However, those working in non-public business areas (e.g., head office) may receive funds. - Employers must keep records, which employees have the right to view upon request (up to one request every three months). - The act grants staff members and agency workers the right to take complaints about tips to an employment tribunal. #Legislation #CodeOfPractice #EmploymentLaw #TipsAndServiceCharge #EmployeeRights #HospitalityIndustry #FairWork #AgencyWorkers #WorkplacePolicy #EmploymentTribunal #EmployeeEntitlements #WorkplaceFairness #CaptivateCulinaryConnections

Victoria's Hospitality Industry in Crisis: Victoria’s hospitality industry, reliant on discretionary spending, is feeling the pinch. There have been over 500 venues shuttering in the past year and insolvencies have soared to almost a third of the national share. Rising payroll taxes are part of the cause and costs of ingredients have pushed menu prices up, and cautious customer spending keeps profits tight. Government policies are contributing to these struggles. An industry leader in Melbourne has watched his business environment transform dramatically in recent years. He notes: “Labour is scarce, goods cost more, and weekday diners are rare. Industry heavyweights like Chris Lucas are calling out government policies for leaving small businesses exposed. Economist Saul Eslake drives it home: “More businesses are failing, and fewer are starting – a clear sign of a deteriorating business climate.” The above is taken from a recent newspaper article. For businesses like this, the combination of soaring payroll taxes and rigid award-based obligations highlights the importance of strong compliance systems. With the hospitality sector already facing high insolvency rates, adhering to employment regulations isn’t just about legality—it’s a strategic necessity to avoid compounding financial pressures. For Victoria’s hospitality sector, it’s no longer just about thriving—it’s a fight to survive. Without urgent reforms and support, the backbone of the state’s dining culture risks breaking under the weight of rising costs and shrinking margins. Share your thoughts below What can be done about this situation? #MargaretLilburne #PayrollWhizzards #Victoria #PayrollTax

Real evidence 🧮 based on data that hospitality businesses are not viable independent businesses in Ireland based on the 13.5% Vat Rate, Outmin have actual figures of how bleak our industry is. Are the Irish Government really serious about keeping local employment in rural communities, community hubs for real social interactions and developing young and ambitious personalities? We need to wake up as hospitality is dead in its current form. 💀⚰️ If the Irish Government want a high street with faceless corporate cafes, restaurants and bars then their plan is working & the entrepreneurial spirit of independent hospitality businesses will quickly, not slowly be eroded as the industry can't take anymore. 🤐 Please support Vat 9 as without any change in this rate, there is no glimmer of light for hospitality businesses up and down the Island of Ireland, fact.🇮🇪 #SupportVat9 #IrishHospitality #IndependentFamilyBusiness #CliffEdge #Budget25 #HospitalityClosures James Lawless Jack Chambers Gordon Ramsay Restaurants Association of Ireland Adrian Cummins Simon Bernard Durkan TD Martin Heydon Catherine Murphy Vintners' Federation of Ireland (VFI) Licensed Vintners Association Local Enterprise Office Kildare RTE Newstalk Kfm Radio Today FM