Workers say they were making up to £1,000 a week in tips when the bar first opened
Hooters on Water Street in Liverpool city centre
Staff at Liverpool’s Hooters bar say tips have been withheld to prop up the ailing business – a move described as “illegal” by a union. Workers at the city centre bar say they have been denied money accrued from tips and service charges since August.
Staff told the ECHO that some waitresses were making as much as £1,000 per week in tips and service charge when the bar first opened in November 2022. But management has now warned staff the business is under “extreme financial pressure”.
In messages seen by the ECHO, managing director Barry Morris told staff that service charge money have been used “to cover essential operating costs” because there were “no other funds available”. In another message, Mr Morris told staff he “cannot confirm” that service charges owed to staff will be paid.
By law, all tips, gratuities and service charges must be paid to workers without any deductions after the introduction of the Employment Act 2023, known as the ‘Fair Tips Act’. The ECHO heard claims that one member of staff is owed as much as £3,000. Service charges are added to a bill by a company at the point of payment. Tips are payments made in thanks for good service.
Hooters director Barry Morris
A member of staff at Hooters of Liverpool told the ECHO: “Most of the money the girls make is from tips and service charges. It was really good for a while. That was the appeal of the job.
“But no service charge or tips have been paid since the start of August. Even before that point some went missing. It was really hard to track what people were owed.”
Speaking to the ECHO, Mr Morris acknowledged that arrears had arisen, but said the business “is not refusing to pay tips or service charge, and there has never been any intention to deny staff money they are entitled to.” Mr Morris also disputed figures “circulating publicly regarding amounts owed”.
In messages seen by the ECHO, workers ask for contact details for the firm’s HR department, but are told by management: “HR work for the company and not the employee.” A worker told the ECHO: “The girls are not stupid. They’ve tried to talk to the managers, but they’ve just been brushed off.
“We know it’s illegal, and we’ve tried to speak to management. We’ve sent a formal letter and we’ve got a lawyer involved.”
In a message to staff, Mr Morris said: “I completely understand how stressful this situation is and I do not dismiss the impact this has had on you. The reality is that the business has been under extreme financial pressure, and service charge money that was collected has already been used to cover essential operating costs at a time when there were no other funds available.
“I know that this is not what anyone wants to hear,” wrote Mr Morris, adding: “I am currently taking formal HR and professional advice to make sure what happens next is handled properly and fairly for everyone. Until that advice is complete, I can’t give a definitive date or outcome, and I don’t want to give false promises.”
ECHO reporter Paul McAuley with Hooters staff members when he visited for an earlier feature(Image: Liverpool Echo)
In another message, Mr Morris said: “Historic service charge amounts that were collected are acknowledged as being in arrears. I am not saying they won’t be paid, but I cannot confirm that they will be paid or give a timeframe, as this depends entirely on the business stabilising financially.
“The service charge has now been removed, so no new service charge is being earned going forward.”
A worker told the ECHO: “A bunch of people have quit. Five people were removed from the group chat this week.”
Mr Morris disputed this figure, saying that only one member of staff has left in recent weeks, and this decision “was not connected to tips, service charge, or any payment matters.”
Unite National lead for hospitality Bryan Simpson told the ECHO: “Using workers’ tips to prop up a business is illegal. The Fair Tips Act is crystal clear: service charge belongs to staff, not the company.
“Financial pressure does not give employers the right to break the law, and any tips withheld must be paid back in full. We would urge Hooters workers to get in touch with us so they can come together collectively to demand the money they are owed and ensure their rights are enforced.”
The restaurant was billed as the world’s biggest Hooters when it opened in November 2022. The venue was just the second franchise of the American chain to open in the UK. It is not the first time the venue has been embroiled in controversy.
There was considerable public outcry in November 2022 when the doors first opened at the former Newz Bar on Water Street. Then Mayor of Liverpool Joanne Anderson hit out at the plans, criticising Hooters’ “infamous sexually objectifying and misogynistic environment” while Emily Spurrell, Merseyside Police and Crime Commissioner, said the venue would “undermine our efforts to tackle misogyny and the objectification of women”.
Hooters Liverpool photographed in 2022. (Image: Liverpool Echo)
The two huge orange ‘Hooters’ signs hung outside the venue caused controversy from the first day they were installed at New Zealand House on Water Street, despite planning permission for the signage being rejected. In May, former Liverpool Hooters boss Rachel Moss and her firm Beauvoir Developments were ordered to pay more than £60,000 after harassing a disabled employee.
In January this year, it was confirmed Beauvoir Developments had collapsed into administration. This led to a new firm – New Zealand Leisure Ltd – taking over the city centre venue. The signs were removed.
Hooters of Liverpool Director Barry Morris said: “It is not correct to state that multiple members of staff have recently left the business. Only one member of staff has left in recent weeks, and this decision was not connected to tips, service charge, or any payment matters.
“The business has been open with staff about the financial pressures it is currently facing following an exceptionally difficult year for hospitality in Liverpool city centre, including periods of significantly reduced trade. While arrears have arisen, the business is not refusing to pay tips or service charge, and there has never been any intention to deny staff money they are entitled to.
“Service charge has been removed from bills both to prevent further arrears from building up and to ensure customers do not feel obliged to pay additional charges during a difficult economic period. The business has also not increased its prices for over three years, despite significant cost pressures across the sector.
“Professional HR advice has been taken, and staff were advised — in line with that guidance — to raise concerns directly with management in the first instance or seek independent support through ACAS or Citizens Advice. Under this professional guidance, matters are being addressed on a case-by-case basis to ensure fairness across the team.
“Figures circulating publicly regarding amounts owed are not accurate and vary depending on role, hours worked, and length of service. I took over day-to-day control of the venue to stabilise the business, protect jobs, and secure its future in Liverpool. That remains my focus as we work toward the next chapter for the site.”
