Too tight to tip: Why South Aussies are cheapskates at restaurants

More people are tipping in Australian restaurants since the start of the pandemic – but SA diners are far less generous than their interstate counterparts.

Tipping in Australian restaurants has soared since the start of the pandemic – but SA diners are less generous than their interstate counterparts, new research has revealed.

The survey, conducted by online booking service OpenTable, shows 27 per cent of Australians are more likely to tip now than they were before the pandemic, as a way of acknowledging great service and supporting the struggling hospitality industry.

However, just 16 per cent of SA diners said they were more inclined to leave a gratuity, with 85 per cent of those surveyed saying they don’t believe in the practice because they already pay enough for their meals.

Local restaurant owners and industry bodies agree the custom – a non-negotiable way of rewarding good service in the US – still isn’t viewed as mandatory but is slowly becoming commonplace, especially at fine dining venues.

Nicola Pau, managing partner at one of the city’s most popular eateries, Osteria Oggi, estimates about 50 per cent of his customers leave some sort of tip – a figure which has remained consistent during the pandemic.

He said rounding up a bill was “common practice” by diners at Oggi.

“I haven’t seen an increase in tips... we don’t expect it from our customers but people are quite generous,” he said.

“If they can afford it, and they feel you deserve it, they will leave a tip. But we are well paid in hospitality these days, we are lucky.”

East End Cellars owners Michael Andrewartha and Margie Andrewartha watch on as Cara Gordan sets up tables when the wine bar reopened its tasting room in May 2020 after Covid lockdowns. Picture: Sarah Reed

East End Cellars’ Michael Andrewartha said his staff had experienced a spike in gratuities since the start of Covid-19, as customers savour restriction-free dining.

“After lockdown, people were appreciative to get out, interact and enjoy good service, and quality food and wine,” he said.

“Our staff will never recommend a tip – we never want a customer to feel compelled to do so, it should be the product of an enjoyable experience. We are, of course, grateful when it comes our way.”

SA’s tipping culture lags behind the eastern states, particularly Victoria, according to Scott Huggins, owner and chef at acclaimed Magill Estate Restaurant.

“It’s a different mentality in those places. I get the customer’s point of view, they shouldn’t have to tip. They’re paying good money for a service,” he said.

“But I also get my staff’s point of view; they work very hard and they expect tips for some of the work they do.”

Huggins said Magill Estate’s eftpos machines have the ability to add a tip when paying by card, while he’s seen other venues with machines that allow diners to add a percentage of the total bill.

“I think it’s good for the staff but I’m not sure it’s good for the customer. It’s good because it very easy to just press 15 per cent, or 25 per cent,” he said.

Magill Estate owner and chef Scott Huggins. Picture: Supplied

Themis Chryssidis, co-owner of city fine dining restaurant Eleven, said about 30 per cent of his customers leave a tip, though he believed the practice wasn’t becoming more popular here.

“I don’t think tipping is becoming more common, in fact probably the opposite,” he said.

“The best way to support the hospitality industry... is to visit your favourite restaurants, cafés and bars regularly, and most of all, try to visit these places during off-peak times such as a Tuesday night,” he said.

A 15-20 per cent tip off the total bill is customary in the US as a way of supplementing the income of lowly-paid restaurant and cafe workers.

Themis Chryssidis and Callum Hann at Eleven in Adelaide. Picture: Matt Loxton

In Australia, the national minimum wage was increased by 5.2 per cent from July 1, boosting the pay packets of full-time hospitality staff by about $40 a week.

United Workers Union executive director Dario Mujkic, whose members include those in the hospitality sector, said Australia should never have a “US-style system” where tips replace wages.

“Tips are a welcome bonus for hospitality workers, who are some of the lowest paid workers in the country, but they are no substitute for decent wages and decent jobs,” he said.

Restaurant and Catering Association chief executive Belinda Clarke and Australian Hotels Association SA chief executive Ian Horne strongly agreed, saying tips should only be a reward for “exceptional service or attitude”.

“Appreciation for service and food through tipping is always warmly encouraged by the industry,” said Ms Clarke.

“Tipping is voluntary and we certainly wouldn’t want a system like they have in the US, but if customers have an amazing experience then making someone’s day with a tip is always special.”

Originally published as Too tight to tip: Why South Aussies are cheapskates at restaurants