Tipping spikes as patrons give praise for hospitality workers

Australians may be limited in their social and travel movements for the foreseeable future but when it comes to their appreciation for hospitality workers they’re more generous than ever.

Australians may be limited in their social and travel movements for the foreseeable future but, when it comes to their appreciation for hospitality workers, they’re more generous than ever.

Contactless payment data shows that tipping, particularly in Sydney and Melbourne, has skyrocketed since the start of the pandemic last year with the average patron coughing up eight times the usual average in gratuity.

Men&u founder Stevan Premutico believes patrons are appreciating hospitality workers much more. Picture: Britta Campion / The Australian

That equates to about $10 million dollars extra in the pockets of hospo workers in the past year, predominantly wait and bar staff, with the average bill spend across the board also increasing around 30 per-cent.

It’s a phenomenon that comes down to several factors, according to Stevan Premutico who — after selling his digital reservation platform Dimmi to TripAdvisor — founded the contactless payment technology me&u now used in restaurants, bars and pubs nationwide.

“I think people are just more grateful for the experience of going out, eating in restaurants and just hospitality workers in general,” says Premutico, who noted the data shows patrons are not only tipping more but more often.

“There’s this renewed appreciation for the people who are there, bringing our meals, opening doors for us, serving us.

“So as a result we are tipping significantly more.”

Also way up; sales of spirits and cocktails, with the former experiencing a 400 per cent increase in the past year according to me&u stats.

Topping the list; vodka sales followed closely by gin — both have which have roughly doubled in demand during Covid.

Cocktails, too, now make up almost 20 per cent of all drinks ordered through the contactless technology – a spike which Premutico puts down to the fact the drinks are displayed visually on the app.

“So before you might think of a cocktail and not be sure exactly what you’re going to get but now you can see everything illustrated beautifully in your device.

“It’s kind of the same with spirits. Pre-Covid you might go to the bar and say; “Oh I will have a gin and tonic’ and you just get the house whereas with digital ordering you can scroll through and see (that) there’s ‘Oh OK Hendricks or Tanqueray or whatever’.”

And with the impending end of lockdown next week, Aussies will — based on past trends following previous snap lockdowns — spend up big on food and drink in the initial days after venues re-open.

“So what we have seen in that spending is generally is up 28 per cent in that period immediately post lockdown,” Premutico says.

“It’s clearly that sense of; ‘We’re finally out and about again … we want to celebrate’ and we’re not spending on travel and experiences so we are spending big in hospitality.”