Cost of living crisis means Sydney hospo workers receiving less tips

Fewer and fewer Sydney diners are leaving tips at restaurants, new research shows. But we want to know how much you tip? Or if you tip at all.

Charli Hughes and Con Dedes, at Watergrill Restaurant, at Sydney Rowing Club, today. The cost of living crisis has seen tipping drop at restaurants. Picture: Justin Lloyd.

The cost of living crisis means fewer and fewer diners are leaving a tip at restaurants.

The Daily Telegraph has received exclusive data showing tipping in Sydney hospitality venues is down overall by 15.65 per cent, compared to the same period of January to June last year.

The data, from Tyro Payments, shows that April and June were the worst months for tips, down over 20 per cent compared to last year.

However the data showed that when it came to average cost of a meal, diners are spending just slightly less on average than last year. Figures show the average meal spend is $32.28, compared to $31.62.

The tips are down by 15.65 per cent.

Tyro, an EFTPOS machine, is used by top Sydney hospitality groups like Merivale, Fink and Dedes Group.

Managing Director of Dedes, Con Dedes, who runs venues like Alpha in the CBD and Watergrill Restaurant at Sydney Rowling Club said he’s noticed a decline in tips across venues in the past six months.

“Guests will always reward exceptional service but in recent times we have seen a decline in gratuity across some of our venues. As people become more conscious about how they are spending their money, gratuity is going to be one of the first things to go,” he said.

“We totally appreciate the climate that our guests and clients are in at the moment, and any gratuity is greatly appreciated by our hard working teams at Dede.”

Last year, The Daily Telegraph revealed that depending on the restaurant, hospitality workers could make $400 to $500 a month on tips.

Most venues pool the tips, and then divide the amount to everyone in the restaurant from senior staff to runners.

One source told Kitchen Confidential that thanks to 10 per cent surcharges being added to bills for group bookings, during peak seasons, waiters could expect to take home an extra $800 to $1000 a week thanks to tips.

These payments are on top of a base salary, where the introductory wage for hospitality staff is set at $23.46 an hour, and $35.19 on Sundays.

Compare this to the US, where tips make up the servers wage. While each state varies, the minimum Federal wage for service staff is $2.13 per hour, or $725 per hour if they don’t get enough tips to cover.

A soon-to-be release report from Tyro also shows one in five diners are tipping less than they used to.

More than half of those surveyed never tip, and of those who never tip 60% were female.

Tyro’s Head of Instore Payments, Matt Patterson acknowledged while hospitality spending trends can be season, comparing to the same period last year shows the decline could be attributed to cost of living.

“Tipping is not as strong a cultural custom in Australia compared to other overseas countries, but in our data we do see Aussies tipping, which is likely recognition for great service and memorable experience. While tipping is slowing in 2024, it’s great to see Aussies are still tipping what they can to support their local,” he said.