We tested the EatClub expenses loophole that lets employees pocket cash from client lunches – and it worked: Hospo insiders say it’s happening everywhere
An investigation by the Daily Mail has revealed a loophole in EatClub, a Melbourne-based dining discount app backed by chef Marco Pierre White, which allows staff to pocket cash by claiming expenses for discounted meals as if they had paid full price. The app applies discounts of 20 to 50 per cent invisibly in the background while issuing a receipt for the full menu price, meaning employees can submit that receipt to their employer for reimbursement and keep the difference. The trick, which reporters successfully tested themselves, matters because it exposes how a legitimate restaurant promotion tool can be quietly exploited to defraud employers, with hospitality insiders suggesting the practice is now widespread.
In the test, journalists ran up a bill of 219.60 Australian dollars, of which 48.53 dollars was refunded via the app, and successfully claimed the full amount back from their employer's accounts department, netting a profit. The same method reportedly works when splitting bills among unwitting companions. EatClub, which takes a 10 per cent cut of bills and charges venues a monthly fee of around 50 to 60 Australian dollars, has expanded from Melbourne to London and Manchester, but some restaurateurs say they feel pressured to join despite shrinking profit margins and customers exploiting vouchers. EatClub did not respond to requests for comment, and the article stresses it is not accused of any wrongdoing.
- EatClub app discounts can be hidden, letting staff over-claim lunch expenses
- Reporters tested it, pocketing a profit on a 219.60-dollar bill
- Hospitality insiders say the fraud loophole is being widely exploited