Carluccio's staff paid £1.60 an hour below the minimum wage

Antonio Carluccio this week looked the picture of prosperity, as he might. His chain of cafés and upmarket groceries reported half-year profits of £2.4m as ambitious expansion plans surged ahead. But unlike their prosperous boss, Carluccio's waiting staff do not enjoy the fruits of their efforts. They are paid £1.60 below the minimum wage, and tips make up the rest of their pay packet.

Despite its success, the firm pays its 300 waiting staff just £3.75 per hour, 30 per cent below the national minimum wage of £5.35. The company then monitors tips and service to ensure they lift earnings to at least the minimum wage, or else makes up the difference.

In October 2006 the Inland Revenue ruled that tips could be considered part of wages if administered independently by a tronc scheme - a way of pooling tips.

Tipping etiquette remains a minefield for diners, who have no idea whether their waiter is being paid a reasonable basic salary or is relying on tips.

The notion of buying good service is established in America. Waiters and bar staff are paid a pittance and depend almost entirely on tips for their wages. Customers consequently expect excellent service and tip generously, at least 15 per cent. But in Britain the rules aren't quite as explicit. It is often not clear who gets the money.

Miguel Paredes, a 29-year-old Spaniard, worked for six months as a waiter at Carluccio's. He said: "I took home good money because I am an experienced waiter and worked really hard every day. Not because Carluccio's were paying me a decent wage.

"Whenever I told a customer how much I got paid they were surprised."

Frank Bandura, Carluccio's financial director, said the company treats its employees fairly: "The way we remunerate encourages their best efforts. I don't think tips are being used to save the company money.

"We take into account all sources of income. Many staff earn 50 per cent more than the minimum wage. I think it's less important who pays," Mr Bandura said.

But diners disagree. Barbara Gadenne, a 32-year-old engineer who regularly eats out in London, said: "It's wrong that my tips should make up somebody's wages. I want to reward staff, not management."

The chef Antony Worrall Thompson said: "The Carluccio's situation shouldn't be happening. But more common is that sharks shaft staff by paying them a fixed salary and keeping the tips or service charge for the house."