New research has focused on how Aussies feel about US-style tipping in venues, finding most not embracing the concept, saying it has “no place” in Australia.
The survey by Pureprofile was commissioned by Money.com.au, garnering a nationally representative sample of more than 1,000 Australians, by gender, age, and location.
The project asked participants how they feel about being prompted to tip at hospitality venues.
In response, close to half (43pc) said they refuse to tip – even when prompted.
This outlook was most common amongst older Australians, finding 50 per cent of Baby Boomers refusing, on the basis that “it has no place in Australia”.
The sentiment was largely shared by Gen X (1965-80), with 40 per cent shunning tipping.
But this age group is also the most likely (22pc) to tip if they feel pressured to do so, slightly above the average of 18 per cent of people who will tip under some duress, although it was not established how these ‘pressured’ patrons fare in terms of repeat custom.
Nearly a third (29pc) of those surveyed reported they don’t mind tipping – depending on the occasion.
Of these, only seven per cent of people offered that they tip as a way of expressing that they thought the service was good, although this rate was considerably higher (33pc) in Gen Z (~1997-2012).
And coming in as the most generous and tip-friendly demographic are Millennials (~1981-96), with 15 per cent saying they always support tipping, either as a reward for good service or because they believe hospitality staff deserve extra pay.
“Tipping might be the norm in places like the US, but Aussies aren’t buying into it — even though more venues are adding tip prompts of 15–20 per cent at checkout,” notes Money.com.au’s finance expert Sean Callery.
Customers might be prompted to tip when presented with a bill, through the payment terminal or a QR code.
Money.com.au says that while these rates have been observed at a number of venues in capital cities, it is unclear whether the recommended percentage is being driven by specific – likely American – POS systems, or whether venues are choosing to set the high levels. Whatever the cause, it appears to be “a growing trend of digital checkouts” to encourage larger tips.
“It feels automated and forced,” adds Callery.
“Most Australians expect hospitality staff to be paid fairly by their employer for providing a service, not subsidised by the customer.”
Founded in 2019, Money.com.au is an Australian comparison platform with a goal is to provide financial education and access to financial products.
