Dublin’s Ivy Restaurant Faces Backlash Over Unequal Tip Distribution
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Customers are increasingly questioning where their money goes as allegations of unfair tip distribution practices surface at The Ivy restaurant in Dublin, highlighting a growing debate over equitable compensation in the hospitality industry. A contentious policy regarding credit card tips has fueled resentment among kitchen staff, with some employees alleging a significant disparity in earnings compared to front-of-house waiters.
A History of Controversy
This isn’t the first time The Ivy Dublin has faced scrutiny over its handling of tips. A previous, long-running controversy regarding tip practices several years ago prompted legal changes in December 2022, legally entitling hospitality staff to retain tips and service charges. While waiters at The Ivy have fully benefited from this legislation, a recent agreement reached in August 2024 revealed a system that initially excluded kitchen staff from sharing in card tips.
The Disparity in Earnings
For over a year, kitchen workers were the sole staff members at The Ivy not receiving a portion of tips earned through card transactions. Diners at the Dawson Street restaurant leave approximately €20,000 in card tips each week, with 70 percent of that amount – alongside all cash tips – now allocated to waiters. According to “Jorge,” a senior employee at the restaurant, “the system for sharing tips is grossly unfair,” allowing waiters to earn more than three times the income of chefs.
The August 2024 agreement, signed by individual waiters and overseen by The Ivy’s London head office, allocates 30 percent of card tips to other departments. The breakdown includes 25 percent to managers, 20 percent to runners, 30 percent to bar staff, 15 percent to back waiters, and 10 percent to reception. Critically, the kitchen staff – those responsible for preparing the food – were initially excluded.
An internal spreadsheet, reviewed by The Irish Times, detailed the distribution of over €21,000 in card tips in September, before the limited inclusion of kitchen staff. Waiters reportedly received between €500 and €700 each from card tips, with some exceeding €1,000, in addition to their wages and cash tips. Other staff received smaller shares: bar staff €60-€80, managers €300-€600, backwaiters €60-€80, runners €50-€100, and reception €150. Kitchen staff received nothing at that time.
Staff Exodus and Limited Change
The situation led to significant staff departures. By late September, Jorge estimated that 29 back-of-house employees – chefs and kitchen porters – had left The Ivy over the preceding six months. “Peter,” a former chef who recently resigned after two years with the restaurant, described the lack of support and the tip disparity as major factors in his decision. He recalled learning that “a floor manager got €1,500 from tips, while kitchen staff got nothing,” which he found “very frustrating.”
Following complaints and staff departures, a small share of card tips began to be distributed to the kitchen at the end of September. However, the amounts were minimal, ranging from €17 to €28 per chef or kitchen porter, compared to the considerably larger sums received by other departments. In October, managers continued to receive up to €550, bar staff up to €300, and waiters up to €1,250 weekly, while kitchen staff received a maximum of €44.
The Ivy Asia and Future Practices
The Ivy Collection is set to open a second Dublin restaurant, The Ivy Asia, on November 7th. Ivy Asia has stated that there will be no service charges on bills, and “gratuities directly provided to a server are kept by the server” (minus a 5 percent admin fee on card tips).
Currently, chefs at The Ivy earn between €14 and €20 per hour, while kitchen porters – considered the most demanding and lowest-paid role – earn between €13.80 and €15. Waiters earn at least minimum wage, ranging from €13.80 to €18, but their earnings are significantly boosted by cash and card tips.
When queried about the tip distribution system and the exclusion of kitchen staff, The Ivy’s London head office declined to comment. Jorge emphasized the fundamental issue: “Customers deserve to know where their tips are going. Staff deserve to be treated equally.”
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