Managers at Annabel’s, an exclusive private members’ club in London’s Berkeley Square, have come under scrutiny for allocating more than £70,000 from staff tips to fund their own bonuses, prompting protests from employees and union representatives.

The club, owned by Richard Caring—often referred to as the “King of Mayfair” due to his extensive ownership of local venues—has faced backlash after reducing tip payments to frontline workers in order to provide Christmas bonuses to approximately 50 senior staff members. Guests at Annabel’s pay an optional 15 percent service charge, which is intended for staff distribution, alongside a £3-per-head cover charge that goes to the restaurant.

Caring, 77, acknowledged the controversy, characterizing the decision to use service charges for managerial bonuses as a “dumb mistake” and confirming that future bonuses would no longer be funded this way. “I believe in openness,” he said, “Everybody should know what they are getting.”

The response from employees was swift, with several staff members and representatives of the Independent Workers Union of Great Britain (IWGB) staging a demonstration outside the Mayfair club. Protesters claimed they had faced intimidation from management and criticized the disparity in compensation. One waitress noted that management regularly received bonuses, benefits, and salary increases, while front-line workers—more than 60 percent of whom earn just £12.76 an hour—rely heavily on tips to supplement their income. This hourly rate is only marginally above the legal minimum wage, contributing to tensions around the tip distribution.

Staff described their frustration upon discovering that tens of thousands of pounds from the service charge had effectively been removed from their payslips. A union representative, Henry Chango Lopez, emphasized the precarious financial situation faced by the club’s workers, many of whom depend on tips “to keep the rent paid” amid London’s high living costs. Lopez also highlighted the stark contrast between the club’s wealthy clientele and the low wages paid to staff, many of whom are engaged on zero-hours contracts.

Annabel’s reportedly collects up to £100,000 per week in service charges, which are pooled among roughly 280 hospitality employees. Card gratuities are shared collectively, while cash tips are distributed separately. Starting this September, the club plans to offer contracts guaranteeing a minimum of 20 hours of work per week to some staff members.

In response to the protests, an Annabel’s spokesperson stated that the tronc system managing tip distribution is overseen by a third-party company operating under legislation introduced in 2024. The spokesperson insisted the system follows a clear, points-based structure and dismissed the protest as unrepresentative, noting that fewer than 1 percent of the club’s workforce supported the union’s actions. They added that 99.3 percent of staff members have reacted positively to recent changes, which aim to improve financial stability and fairness among employees.