Restaurants and takeaway venues benefitting from a rise in tips
The act of tipping is becoming more commonplace in Australia and despite cost of living pressures, Australian are tipping more.
The average national gratuity now sits at $17.93, up 12 per cent from $16.05 in the previous year.
According to payment platform Zeller, the volume of gratuities to total transactions has increased by 132 per cent since January 2022.
Melbournians top the list of most generous tippers, adding $18.57 to a bill compared to Sydneysiders’ $11.81.
Regional Australians are also very generous, with the average tip rising 79 per cent to $16.07, compared with a 12 per cent increase among metropolitan customers to $18.08.
Zeller director of growth Joshua McNicol said the increasing is surprising.
“Given the rising cost of living and economic pressures on consumers, the trend of increasing average value of tips going up 12 per cent year-on-year – despite interest rate pressures – was one that definitely caught us off guard,” he said.
Inflation is higher between June quarter 2022 and the same quarter in 2023. Petrol prices are now over $2 a litre and interest rates are 4.1% after a record number of increases.
That hasn’t stopped the tipping, with the hospitality sector enjoying an 11% increase. However, this hasn’t been spread through the entire sector: bar and club staff saw a 23 per cent decline to $10.21, while tips for coffee shops slid 19 per cent to $2.94.
It is the sit down restaurants and takeaway venues that are being rewarded, with an 8 per cent increase to $19.98 and a 6 per cent rise to $7.52 respectively.
“With your cost of living increase, people are going out less often [but] looking for a great experience at a sit-down restaurant,” McNicol said.
“The willingness to reward amazing service or great experience hasn’t changed, but potentially the frequency they’re doing it has changed. It’s a really great thing because it shows that we still have a sense of generosity and community overall.”
McNichol said regional Australia is benefitting from more tourism and better establishments.
“Great dining and great hospitality isn’t just centred in metro areas any more – you’ve got fine dining and amazing bars scattered across regional [Australia] as well,” he said.
It is also the younger demographic that is more likely to tip.
“Tipping is fuelled by changing cultural norms. We’re adopting trends that are very popular in the US,” he said.
Jonathan Jackson, 5th October 2023
