Man furious over $156 tip request before booking

A Victorian man was left furious after it was suggested he leave a $156 tip even before he had made a restaurant booking.

"I was looking to organise a birthday dinner for my fiancé at one of our favourite restaurants in the south-east suburbs of Melbourne," the man posted online.

“I go to book a table for 12 and they advised me that everyone would have to order the set menu and that we'd have to book online and pay a deposit. Not thrilled with all this but okay."

The restaurant reached out to the man, explaining the non-refundable deposit encompasses the cost of the entire meal for 12 people.

"And, get this, [they] had the option for a 20 per cent tip pre-selected," he wrote on Reddit.

When the man called the restaurant to ask what would happen to the deposit if people were to cancel, he was told it would be forfeited, along with the tip, if 48 hours’ notice had not been given.

"I found the whole experience really cheeky, bordering on rude, he said. "I mean, imagine wanting a tip prior to even providing a good experience! I canned the whole thing and instead booked at a nice restaurant run by nice people.

"I get that it is a tough industry and late cancellations can cost restaurants money, but this seemed way over the top. Is this normal now?" he asked.

Redditors also expressed their outrage.

One said, "Plenty of places to eat without that level of draconian rules and blatant greed. A 20 per cent tip in advance that's entirely non-refundable? LOL. I bet that wouldn't even be going to the staff if you did go."

Another wrote, "The audacity to ask for over $150 before you even set foot in the place is astounding."

"Why do we need to tip in Australia when our staff actually get paid?" one user questioned.

There is no doubt restaurants are suffering under the weight of higher costs, lower discretionary spending and in some cases, higher wages.

According to ANZ Research Senior Economist Adelaide Timbrell, restaurant bills have risen 6.5% and takeaway food has gone up 9.1% to deal with increased overheads.

"This is likely due to a mix of factors in the hospitality sector, including the higher price of inputs like food, electricity and transport, as well as labour shortages, which have likely impacted productivity in the sector," Timbrell told Yahoo News Australia.

"Rising wages in the sector may also contribute to the rising cost of dining out, though are one of many factors."

With rising costs in mind, diners will have to become more discerning in choosing a restaurant that suits their needs.

Jonathan Jackson, 30^th August 2023