Australian Eateries Turn To Automatic Tipping as Cost of Doing Business Climbs (abc.net.au)
- Reference: 0180440321
- News link: https://slashdot.org/story/25/12/22/202229/australian-eateries-turn-to-automatic-tipping-as-cost-of-doing-business-climbs
- Source link: https://www.abc.net.au/news/2025-12-21/automatic-tipping-on-the-rise-amid-cost-of-business-crisis/106167380
Wes Lambert, chief executive of the Australian Cafe and Restaurant Association, said only a handful of businesses in central business districts currently add automatic tips to bills, but the practice may spread as cost pressures continue. Automatic tipping is more common at venues frequented by international tourists, who view the practice as normal rather than exceptional. With international tourism now near pre-COVID levels, Lambert expects more restaurants to include tips on bills by default.
A Sydney wine bar recently abandoned its 10 per cent automatic tip after a diner's social media post triggered public backlash. University of New South Wales professor Rob Nichols said Australia's resistance to tipping stems from the expectation that hospitality workers earn at least minimum wage, unlike in the United States where tips constitute most of a server's income. Australians and tourists tip an estimated $3.5 billion annually, and tipping transactions grew 13% year over year in fiscal 2024-25.
[1] https://www.abc.net.au/news/2025-12-21/automatic-tipping-on-the-rise-amid-cost-of-business-crisis/106167380
Australians copying the dumbest of all US habits (Score:5, Insightful)
Sad to see this tipping disease spreads to another continent. I mean, when copying stupid things, they could at least modify the idea to make it more Australian, like increasing the prices by 20% but allowing the customers to deduct an up to -16% dissatisfaction rebate.
Re: (Score:2, Insightful)
Business owners are cunts, pure and simple.
Put the actual price on your menus.
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Long as we're bucketing people, people who blindly assign the term "cunts" to a group of millions of people trying to earn a living are idiots.
I'm pretty sure my abstraction is more accurate than yours.
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Put the actual prices on your menu, fuckwit.
Inclusive of all taxes and staff wages.
That's how it works in my country. Shove your 'tipping culture '.
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You're wrong, but it's good that you put yourself out there.
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There is a theory that tipping culture comes from Jim Crow/Reconstruction era laws to [1]avoid paying newly freed slaves a reasonable wage [nd.edu], and it just became institutionalized. I don't fully support this theory; I think tipping has a lot of complex origins, but it is interesting particularly when you refer to it as a "tipping disease".
[1] https://freshwriting.nd.edu/essays/the-tipping-point-a-conversation-about-tipping-culture/
Tipping isn't a disease (Score:3)
It's just racism. The practice got it start here because after minimum wage took effect there needed to be a way to pay black people less than minimum wage. That's why the United States developed tipping and other countries didn't.
Anytime you see a quaint little American custom that you can't figure out why it's still around the answer is usually there was some nasty little bit of racism that we've forgotten because of the civil Rights amendments and a shitload of lawsuits.
In this case though this i
My local Outback Steahouse (Score:1)
apparently hasn't received the memo yet.
Reddit Murdered Them (Score:2)
Reddit murdered them. And they deserved it.
The Reddit post that triggered the murder. [1]https://www.reddit.com/r/austr... [reddit.com]
The cleaned up [2] Google reviews [google.com]. Sort by newest.
[1] https://www.reddit.com/r/australia/comments/1pczjl3/when_did_tipping_become_the_norm_for_australia/
[2] https://www.google.com/search?q=Ragu+Pasta+%26+Wine+Bar&sca_esv=468dd309b21e9ab2&source=hp&ei=OqdJaZbmF5aVwbkPk_akqAs&iflsig=AOw8s4IAAAAAaUm1SsaPHgDxLJHHmn87jKD-coZEQMaX&ved=0ahUKEwiW68rfgdKRAxWWSjABHRM7CbUQ4dUDCBo&uact=5&oq=Ragu+Pasta+%26+Wine+Bar&gs_lp=Egdnd3Mtd2l6IhVSYWd1IFBhc3RhICYgV2luZSBCYXIyCxAuGIAEGMcBGK8BMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMgsQABiABBiGAxiKBTILEAAYgAQYhgMYigUyCxAAGIAEGIYDGIoFSJ8OUPoCWPoCcAF4AJABAJgBVaABVaoBATG4AQPIAQD4AQL4AQGYAgKgAmWoAgrCAgoQABgDGOoCGI8BwgIKEC4YAxjqAhiPAZgDCfEFFwLmERwXy_eSBwEyoAf2CbIHATG4B1zCBwUyLTEuMcgHDoAIAA&sclient=gws-wiz&sei=PadJadvsNqSIwbkPkf7e6QY#
Automatic tipping is a price Increase. (Score:5, Insightful)
Be honest and put it in the price.
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> Be honest and put it in the price.
Airlines enter the chat.
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In Australia the price they list is the price you pay for airline tickets...
As a patron you make the choice (Score:2)
I may dine out a few times a year but its mainly for the company. The quality of food, service, experience mainly keep me away and to have to tip on top of that is ridiculous. Its gotten to the point at serve yourself locations, theyre still holding out the tip jar and the answer is absolutely not - its a disservice to the time and effort actual wait staff put in to make your meal effortless and enjoyable. I would rather dine in a place who prices reflect the actual costs. What will keep me coming back is q
cost of doing business? Huh? (Score:4, Informative)
I don't tip a business ever, I'm tipping the wait staff!
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Yes. I'll always pay the business by card, but I always tip in cash.
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Exactly. Cash in hand to the staff when you want to thank someone for good service. Handing it to them PERSONALLY is personalized SERVICE being reciprocated. The extra 2 min out of your life to show your gratitude to someone can mean more than the monetary gratitude. Try it sometime!
Definition (Score:4, Insightful)
Then how is it still a tip?
I’ve not seen it. (Score:3, Informative)
I live in Aus and haven’t seen it. Restaurants will usually have a tip option on the eftpos machine but it is very optional and if it was mandatory, they would loose repeat business.
And there is nowhere else I’ve seen tipping.
Minimum casual wage is now almost $32/hr ($21USD)
Since COVID though cost of living has skyrocketed, so I do feel for the restaurants.
Re:I’ve not seen it. (Score:5, Interesting)
> I live in Aus and haven’t seen it.
I don't live there anymore but I have seen it a few months ago when visiting the folks in Queensland, and I flipped the fuck out. I talked to some friends about it afterwards and they were like "Yeah, nah we don't go to those ****s anymore."
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Exactly - I've not seen it either, in Melbourne....
Anyone who did - wouldn't get a second round of customers...
Perhaps wishful thinking from people in the US, hoping someone has copied their shit?
tipping = gratuity = discretionary (Score:5, Insightful)
That's what a "tip" means. It's an amount paid at the discretion of the consumer, meant to express appreciation for the service rendered.
If it is automatically applied, it is not a tip. If an establishment does not include it in the price of the goods or services, then it is an anti-consumer effort to mislead or deceive. A message or disclaimer saying "a X% service charge will be added on all prices/items" is inadequate disclosure. To understand why, simply make the advertised price 10% of the true price and make the service charge 1000%. If the consumer has to do mental math to get an accurate understanding of the true cost of the goods or services being advertised, that is inadequate. Moreover, the use of such tactics is itself evidence for its shadiness, since why do it at all if it does not confer some advantage to the seller?
A truly level playing field must have totally transparent pricing: the price that is advertised must be what you pay. If there is any tax or service charge, it must be mandated by law and it must be the same percentage for all establishments, so that the consumer has a reasonable expectation that if they take their business somewhere else, they are paying the same rate. But these bottom-of-the-menu disclosures (when they even happen at all, which at least in the US, they sometimes don't) are deceptive practices that business owners use to try to hide the true cost of doing business.
More insidiously, they are also used to capture some or all of the tip income that servers have traditionally received. Some establishments say that this is done in order to be fairer to staff that are not front-facing. But I argue that business owners can and should do this through appropriate setting of wages in the first place. Doing it by capturing tip income through service charges is, again, deceptive. The business owner has full control of the employee compensation structure and consumer-facing pricing structure. That they are so fond of playing games with both means that whatever excuses they make are not to be trusted.
Bring that here (Score:4, Insightful)
We need city ordinances banning tipping. Tipping is stupid, for one thing it's like how much do you tip service workers like the guys who deliver a home appliance that offered "free delivery"? 20% of the cost of the washing machine seems like a lot. Best solution, ban tipping and force companies to pay their workers adequately.
Annoying (Score:5, Insightful)
One of the things I hate about visiting the USA is it is a PIA to know what you are going to pay for something. Prices listed without tax that appear at the checkout. Staff that are not paid an honest wage and therefor expect a tip as the norm. After a while in the USA you just say fuck it and a budget to pay a lot more that the listed price. When you come from a country like Australia, or in my case New Zealand, you see a price on a shelf, product or menu and that is the price you pay at the checkout. Simple. The way it should be.
So the last thing Australians should do is accept this stupid idea. If the cost of business climbs you put up your advertised prices, not try and hide it in some new slimy fee.
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It's full disclosure everywhere else as well. The amount before tax and after tax are written on the receipt, and you can understand the effect of tax. I agree with you this is important, for example basic food could be taxed lower than pre-made meals and people need to learn about it.
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On the contrary I have never received a receipt that did not show the amount of tax paid here in New Zealand, or in Australia, or pretty much any country. There is no lack of "full disclosure.".
Minimum wage and penalty rates (Score:2)
Minimum wage is USD 16.5 per hour, but most service bots will also get penalty rates (50-100% typically) for working evenings, public holidays or weekends. It is not unusual for cafes and the like to have higher prices at weekends and public holidays.
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And that's minimum. Cafes etc will almost always pay minimum, but any sort of fine dining pays more.
Re:Automatic reaction... (Score:5, Insightful)
All businesses should pay wages and charge prices inclusive of all their costs. Tipping culture is a shit solution to a ship problem. Never leave a tip on the credit card line. I --always-- put $0 and then put cash on the table or in the card-folio. Why? Because then the waiter gets to determine how the tip is managed, and I will sometimes not tip if the service wasn't above average (or I wasn't a problem customer, customizing dishes or being a needy table). I want the waiters to negotiate a good wage, I want the prices to reflect it, and I want this half-baked solution to go away. Can I afford it? Yes. But I am not a fan of negotiating with myself, which this constantly makes me do in my head "what was the service worth"? Not a fan. Get rid of it. Pay your wait staff, get rid of tip lines. Oh and I never --ever-- tip at a drive through. Im paying for merchandise. Sorry Starbucks.
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That feels good to say, but doesn't actually work in reality. If you turn to paying full wages, then the business has to pass on the cost of that wage in their meal prices. However restaurant meals compared to other types of products are " [1]one of the highest elastic prices out there [hawaii.edu] at 2.27. That means for a 10% increase in price, you have a subsequent 22.7% decrease in sales. Given most restaurants operate on very thin margins, many people simply wouldn't go out. While one could imagine that the overal
[1] https://pressbooks.oer.hawaii.edu/principlesofmicroeconomics/chapter/5-3-elasticity-and-pricing/
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> That means for a 10% increase in price, you have a subsequent 22.7% decrease in sales.
In the US, McDonalds and similar are deemed restaurants. I am sure there is a lot there is lot of elasticity in fast-food restaurants that market themselves on price. For restaurants that are even a little up-market, the elasticity is probably much lower.
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I agree with you, especially on fast food prices. Even in my area, which is not a high cost of living area, the cost of a McD 'meal' is north of $12. I often think "For $12 I can get half a pound of steak, a potato and a veg and pay significantly less than that"
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If those restaurants go under because they have to include the full cost of the meal, service and all, in the prices up front then FUCKING GOOD. Bring it on.
Socially accepted bullying should not be an accepted alternative.
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The typical big government begets bigger government response. Government has to step in to make people get paid more, but then they have to step in again when the business goes completely under. People have to realize that any able bodied and minded person who is stuck in food service as the pinnacle of their career options is almost 100% there because of their own life decisions. Moving best to worst reasons... they either shunned their chance at an education that allowed them to advance, or they have a ma
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The argument is effectively that if people realize the full price of the meal before purchase, they won't purchase. By hiding the true cost, customers buy something more expensive than they otherwise would have. I agree this is why businesses do it, but disagree with it at the ethical level. Exploiting someone else's inattention or poor math ability is basically what Ferengi were made to parody in Startrek. If customers can't afford your food, tricking them into thinking they can is wrong.
I think the actual
2nd order effects (Score:2)
> If you turn to paying full wages, then the business has to pass on the cost ... Given most restaurants operate on very thin margins, many people simply wouldn't go out. ... and thus there'd be a lot fewer employed waiters and waitresses.
Given how bad eating out is for society, how unhealthy 'outside food' is, could this be a net gain for society?
People cook healthier meals at home, fast food outlets close, Americans in particular get healthier, earn more, spend more, open more productive businesses.
Re: Automatic reaction... (Score:2)
It's amazing how most of the world can operate a restaurant without the tipping culture and survive but somehow we can't figure it out in the US.
There is so much overhead in most US restaurants because everyone wants to be everything to everyone. Elsewhere in the world you see much more specialization, find one thing you are extremely good at and focus there.
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I hate tipping culture. That said, having lived in AU/NZ for four years, American table service is far superior in every possible way. So .. there are tradeoffs. Increasing the cost of the meal doesn't increase the wages of the worker. In countries with tipping culture, you decide how much additional goes to the server ... which is kinda neat when you think about it.
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Never leave a tip on the credit card line. I --always-- put $0 and then put cash on the table or in the card-folio.
Sometimes I'll do it that way, sometimes I put it on the credit line. However, there's one chain of coffee shops where I'll always put the cash on the table, because the lowest tip percentage available is more that I think is proper for a tip except for extraordinary circumstances.
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Why do you speak of two absurd opposites? No you shouldn't Karen out. And no you shouldn't accept it either. You should tell the restaurant to remove it from your bill, then to go fuck themselves and to never visit the establishment again.
You are normalising the behaviour of unclear and hidden costs. Leave that shit to Americans and fuck you for every time you've blindly tipped 10% in Australia when someone has added this charge to the bill without your explicit request.
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I just click "zero", which is the biggest button in any aussie place I've been to that "offers" tipping.