Fri 3rd May 2024 - Big Mamma hits back at criticism over ‘checkout fee’ on payment app Big Mamma hits back at criticism over ‘checkout fee’ on payment app: Big Mamma Group has hit back at criticism after customers complained it had introduced a “checkout fee” on its payment app. The restaurant group was responding to an article in the Daily Mail where one customer shared a picture of a digital receipt from their visit to Italian restaurant Gloria in London’s Shoreditch on 28 March, where they were “hit with an unusual surcharge”. Upon receiving their bill, the customer said they were subjected to not only a 13.5% service charge totalling £26.15, but also a “checkout fee” of £2.99. The “checkout fee” was a charge added to the bill for those using the mobile phone app Sunday, which was created by French entrepreneurs Victor Lugger and Tigrane Seydoux, who also co-founded Big Mamma. A Big Mamma spokesperson said: “Firstly, we would like to clarify some facts that have not been properly reported and may have been misunderstood by individuals who haven't used this payment method yet. Only those who want to use the fast and efficient payment option through the QR code are charged a small fee. Others who don't use this option aren't charged anything. The QR code payment solution is optional and is not pushed upon the guest under any circumstances. As proof of that, more than 60% of our clients pay by using a credit card terminal or cash, with no fee incurred. The cost is made very explicit to 100% of guests before they pay, using market standard language delivery platform or sharing economy. Digital payments, including those made through QR codes, have a higher cost structure due to the increased fees charged by credit card issuers. The charges that credit card issuers apply to merchants for processing digital transactions are typically higher than those for traditional card payments. Our approach is two-fold: firstly, we want to provide the option for those who are interested in paying for the convenience service. Secondly, we would like to ensure that only those who choose to use this service are required to pay the higher costs, in order to avoid increasing the prices of our food and beverage prices, which would impact all guests. All this is done to maintain our commitment to providing good value for money, which has always been at the heart of what we do. Think of this service as optional, similar to a delivery service. If you choose to have food delivered at home, you will be charged a delivery fee along with a service fee.” Big Mamma, which is backed by McWin, operates circa 25 restaurants across Europe, including five in London. In March, Big Mamma reported turnover at its then three-strong UK estate increased to £25,884,339 for the year ending 31 December 2022 compared with £13,981,667 the previous year. Pre-tax profit fell to £359,085 from £629,166 the year before. Big Mamma features in the Propel Turnover & Profits Blue Book, which is available exclusively to Premium Club members. Big Mamma’s turnover of £25,884,339 is the 346th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.