‘Tip surveillance’: Aussies rage over dining trend

Fed-up Aussies are putting their foot down over an “invasive and intrusive” new trend emerging in restaurants that spoils the entire dining experience.

Fed-up Aussies are lashing out over an “invasive and intrusive” new dining trend that’s becoming increasingly common in restaurants Down Under.

‘Tipping surveillance’ describes the moment a waiter hands a diner an EFTPOS machine, explains how to enter a tip and then watches them closely while they make the payment.

Customers are typically confronted with a screen displaying various tip options, ranging from 5 to 25 per cent, as well as ‘custom tip’ and ‘no tip’ prompts which are often less prominent.

Professor Steve Worthington, an expert from Swinburne University with over 30 years of experience in payment systems, said the uncomfortable practice was on the rise in Australia.

“There’s a large degree of surveillance when you’re given the payment terminal. It’s very visual to everyone. They are looking at what you’re doing and it feels intrusive,” he told news.com.au.

He said the shift from cash to digital payments had made it “easier to encourage people to tip”, but the experience often left them “feeling awkward”.

MORE: A guide to the average salary in Australia

Aussies are fed up with ‘tip surveillance’ - a growing trend where waiters awkwardly watch a customer after prompting them to tip. Picture: Zeller

As Australia continues to move towards a cashless society, Professor Worthington said customers also had concerns about where digital tips were really going.

“There’s no guarantee that your tip is going to the people you want them to go to,” he said.

With the highest minimum wage in the world, Australia has never strictly abided by tipping culture.

But as the cost-of-living crisis continues to batter the nation, the expectation to hand over a tip at the end of a meal has never been higher.

Sydney resident Anna, a single mum and dog walker, told news.com.au she rarely tipped when dining out but had noticed a rise in ‘surveillance’ from waiters.

Anna said that despite struggling financially, she felt an “obligation to tip because they are watching you.”

“The process is embarrassing and judgemental. If you press ‘no tip’, you feel like a real cheapskate,” she said.

The single mum said she would be willing to tip up to 15 per cent but only at an “upmarket restaurant” or after experiencing “good service”.

MORE: Australia’s fastest growing salaries

One Aussie said the tip options at a Melbourne restaurant were colour-coded (green for 20-25% and red for 5-10%). Picture: X

Many others echoed Anna sentiments online.

One man claimed a Melbourne restaurant handed him an EFTPOS machine with colour coordinated tipping options – green for 20 and 25 per cent, orange for 15 per cent and red for 5, 10 or ‘other’.

“We’re already paying at or above odds for the meal, and the staff are receiving actual wages for performing their roles. What am I tipping for? In Australia? We’re not America,” he wrote on X.

“Tipping culture is slowly seeping into Australia and I will not abide. 30%?! Yeah, nah. Ya need ya head checked mate,” wrote a separate user.

“I’ve learned which places constantly ask for them, and I’ve stopped going there or minimized it,” said another.

Despite an increasingly challenging economic environment, Australians are tipping higher than ever.

The 2024 Australian Tipping Report from financial services company Zeller found that the average Australia tip rose to $25.20 last year, a 25 per cent increase on 2023.

Residents in Victoria led the charge, with an impressive average tip value of $39.50. Queensland followed with an average of $32.20, while South Australians tipped an average of $27.80, surpassing New South Wales residents ($16.90) by a significant margin.

Research found that the more privacy diners are given to enter their tip, the more likely they are to return to the restaurant. Unrelated stock image above. Picture: NCA NewsWire / Paul Jeffers

On the other hand, CEO of Restaurant & Caterers Association Suresh Manickam suggests that despite recent figures indicating an upward trend in tipping - this is not the case.

Speaking to news.com.au, Mr Manickam said, “The experience that I’ve had is that tipping has not increased anymore compared to this time last year, it’s actually reduced a little”.

When asked about the worrying phenomenon of “tipping surveillance” Mr Manickam said that “people shouldn’t feel pressured” and claimed that when presented with the EFTPOS machine “servers typically look the other way”.

He doubled down, saying: “This is Australia, people should leave whatever they think is appropriate.”

It’s not just Aussies who are sick of tip surveillance.

Two US marketing professors analysed 36,000 transactions with varying amounts of privacy during the payment process to compare how much customers tipped.

“High levels of surveillance are bad for business,” they wrote.

“Customers who felt watched while tipping were less likely to make a return visit or recommend a business. Feeling scrutinised led to resentment and reduced loyalty.”

They advised companies to “give customers privacy to tip” if they wanted customers to keep coming back.