Adelaide diners among most generous in the nation with digital tipping on the rise in restaurants

Adelaide diners are among the most generous in the nation, new research has revealed, as more hospitality venues adopt EFTPOS terminals with tipping prompts. Vote in the poll.

Adelaide diners are among the most generous in the nation, new research has revealed, as growing numbers of hospitality venues adopt point-of-sale terminals with digital tipping prompts.

The latest data from Australian fin-tech company Zeller shows South Australia’s average tip was $27.80 in 2024 – about 180 per cent up on the previous year.

That ranked third in the country, behind only Victoria ($39.50) and Queensland ($32.20), and well ahead of NSW ($16.90) and WA ($12.48), according to electronic payment data from more than 85,000 businesses around the country.

Zeller's director of growth, Josh McNicol, said Adelaide venues had embraced this shift towards digital tipping, which sees EFTPOS machines fitted with up to four fixed tipping options. Patrons have to actively opt out of paying extra.

“Whether it’s a cafe in the East End or a bar along Hindley Street, businesses that make tipping seamless are seeing the benefits, not just in extra earnings for staff, but in customer satisfaction and loyalty,” he said.

Zeller's new eftpos terminal with tipping options. Zeller is the Australian fintech reimagining business banking. Picture: Supplied

“Despite cost-of-living pressures, people still want to reward great service, and digital tipping is becoming an important way to do that.”

Mathieu Smeysters, general manager and co-owner of top city restaurant Station Road, said customers at his Festival Tower venue were more willing to tip since they introduced the feature.

“It’s become very common and acceptable for people to get that prompt to leave a tip,” said Mr Smeysters, who’s also behind East End Cellars.

“It seemed almost awkward at first, because back when it was cash, you’d never ask the guest for a tip – it happened organically.

“There’s a fine line between them feeling forced to do so, which we never want to do.

“So we’ll put it on the payment screen and just tell the guest to follow the prompts.”

Mathieu Smeysters and head chef Baine Stubbs inside Station Road, Festival Tower. Picture Dean Martin

Justin Daysh, owner of Glenelg restaurant Seafire on the Marina, said they don’t use the new technology but he can see the benefits for both sides.

“Staff generally don’t like to ask for a tip, so it takes out the awkwardness,” he said.

“It’s also good for the customer … they can say no without feeling like they’re insulting someone, while servers are conditioned to look away from the machine.”

Australian Hotels Association SA chief executive Anna Moeller said tipping was more common at high-end restaurants but the practice wasn’t as prevalent here as overseas or interstate.

“I think there’s actually a bit of pride that we’re not a state that has tipping as a common practice,” she said.

“I don’t think that needs to change … and I don’t think the venues want that either. It’s just an added impost when there’s already a cost-of-living crisis.”

AHA SA chief executive Anna Moeller. Picture: Supplied.

Restaurant and Catering Industry Association chief executive Suresh Manickam said no diner should feel compelled to leave a tip.

“The power should always remain with the customer, and you should only tip an amount you feel comfortable with,” he said.

Zeller’s data, from its 2024 Tipping Report, comes as a December 2024 study – conducted by US marketing professors – analysed 36,000 transactions, comparing different levels of tipping privacy. Various digital setups were scrutinised, including countertop payments, handheld digital terminals and those that disclose tips only after the service.

The results of that survey, by the University of Richmond, and the BI Norwegian Business School, showed high levels of ‘tip surveillance’ were bad for business. Customers who felt they were being watched when settling a bill were less likely to return or recommend a venue to others.

Adelaide publican Simone Douglas says digital tipping can be a good way to reward exceptional service in an increasingly cashless society.

But she conceded that customers can find it “confronting or uncomfortable” to hit ‘skip tip’ when prompted.

Simone Douglas, the owner of the Duke of Brunswick. Picture: NCA NewsWire / Morgan Sette

“When you are given the machine and someone says, ‘Feel free to skip past it’, I think it’s fine but when they leave you with no instructions, it’s pretty awkward,” said Ms Douglas, owner-operator of The Duke of Brunswick and The Port Admiral Hotel.

Mr Daysh said it’s important diners are not made to feel pressured during the payment process.

“Hospitality is about being hospitable. Have the offer there but don’t make the guest feel like they need to pick one of the (tip) options,” he said.