‘Shame on you’: Sydney restaurant fee backfires
A popular pasta and wine bar in Sydney’s CBD is copping backlash after a diner took to social media with a common gripe.
A Sydney eatery has come under fire in the midst of a war against tipping in Australia.
A customer of a popular Sydney restaurant took to social media this week to expose a small detail on their invoice.
Underneath the prices of their items and a subtotal, a ‘suggested tip’ is listed at 10 per cent of the price, and added to the total at the end.
The invoice then reads: “A suggested tip is included in the bill. Please do not hesitate to ask if you wish to remove it. Grazie.”
The poster crossed out the name of the restaurant, however commenters were quick to deduce that it may have been at Ragu Pasta & Wine Bar, situated inside Westfield Sydney.
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While this particular customer only just noticed it, it appears Ragu Italian Pasta & Wine Bar has been doing this for a while.
One person made a Google review two years ago venting about the 10 per cent tip, which they were ultimately refunded after making a complaint.
And, while Ragu did not respond when contacted for comment by news.com.au, they did respond to this reviewer – and many others over the years – defending the tip.
“We do have a suggested 10 per cent tip which is both advertised on our menus and also on the receipt given prior to payment,” the owner said in their reply.
“This tip is not compulsory, however is an opportunity for our staff to be rewarded for excellent service.
“Our staff are instructed to check prior to processing payment if the customer is happy to proceed. It is unclear if this check happened at the time of payment.”
Commenters on the original post were concerned that the act of adding an automatic tip – regardless of signage – felt deceitful.
“I can’t believe they automatically added a tip onto the bill without permission. They’re hoping that people either won’t notice or won’t feel comfortable enough to ask for it to be removed,” said one person.
“Really nasty that they add the ‘Please do not hesitate to ask if you wish to remove it’, adding that small layer of social interaction to try and publicly shame you for not tipping as if it’s some norm is disgusting. Just a crappy way to try and gouge money out of people,” another agreed.
However, earlier this year, Australian Restaurant & Cafe Association CEO Wes Lambert told news.com.au that this is not the case.
“The ACCC requires restaurants and cafes to inform diners and consumers about any mandatory fees, such as weekend and public holiday surcharges, on top of standard menu prices before they order,” Mr Lambert said.
“Every business has a different revenue and cost structure, certainly when you go to hire a solicitor and the fee is $600-an-hour plus expenses, those expenses are variable but they let you know it exists. It’s just like this and becoming more commonplace.
“So in practice, that is how it is supposed to work, but often times consumers might not read the fine print, and can certainly be surprised when it is added to the bill.”
Others shared concerns that tipping culture was seeping into Aussie dining. And, unfortunately, it seems as though this is absolutely the case.
In August, Island Radio in Redfern was found to be automatically adding a 3 per cent gratuity to bills that it similarly said could “be removed at any point, no questions asked”.
In April, another Sydney local took to Reddit after realising a 7 per cent tip had been added to his bill at Tilda, inside Sofitel Wentworth, automatically.
Both venues are owned by House Made Hospitality, who provided the same statement on each.
“The optional surcharge at Tilda, communicated at multiple stages during the booking process (in the booking widget, in the confirmation email), written on the menus and again verbally when the bill is presented, is designed to reward our team for their dedication and hard work,” the spokesperson said.
“It also serves to incentivise exceptional service and support increased tenure within our industry – at a time when experience is hard-to-find, and living costs are increasing.
“This surcharge is not mandatory and can be removed at any point, no questions asked, should a guest request it.”
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Originally published as ‘Shame on you’: Sydney restaurant fee backfires
