Sydneysider rages at ‘mandatory gratuity fee’ at popular Barangaroo bar
A Sydneysider has slammed a ritzy Barangaroo restaurant after noticing a sneaky charge on their receipt.
A Sydneysider has slammed a Barangaroo restaurant for applying a “mandatory” 10 per cent gratuity fee to their bills.
The diner posted their exchange with staff at the ritzy NOLA Smokehouse and Bar online after noticing the charge.
“Was considering dining here until I saw this nonsense. A discretionary gratuity became mandatory and standard practice in the industry,” they posted to Reddit.
“Can we not start rejecting this backwards logic and obvious gouging? I was thinking of going to this restaurant but saw the fine print about a ‘discretionary’ 10 per cent gratuity.
“When I checked their Google reviews, someone mentioned it and the venue responded by saying it’s MANDATORY and ‘is used to ensure all staff are fairly compensated for their work’.”
The notice of a 10 per cent gratuity fee can be found in the menu's fine print.
The restaurant replied to their query online, explaining the fee was to fairly distribute tips across the business.
“The gratuity fee is a mandatory charge that is added to the bill as a way to compensate the hardworking staff who provide excellent service during your visit,” the email read.
“This fee is a standard practice in the hospitality industry and is often used to ensure that all staff members are fairly compensated for their work.
“While we understand that some guests may prefer to tip individually as a show of appreciation, we have found that the gratuity fee provides a more equitable way of distributing tips among all staff members.
“It also helps to ensure that our staff members are motivated to provide the highest level of service to all guests, regardless of whether or not they are tipped individually.”
NOLA’s General Manager Clement Martin later insisted the use of the word “mandatory” in the restaurant’s online response was an error and stressed the charge was optional.
“This charge has always been discretionary, as you will see from all of our website copy and any customer communications at the restaurant,” Mr Clement told Yahoo.
“As it’s discretionary, guests can ask for this to be removed from their bill at any time.”
Mr Clement said the online review response would be corrected and said the opt-out tipping system was first introduced during the Covid pandemic to reward hard-working staff.
Commenters weighed in on the debate, slamming the restaurant and noting that it already charges up to $250 for a steak.
“Isn’t it the employers job to ensure their employees are fairly compensated for their work,” one posted.
“I’d never eat there again. Doesn’t matter how good the food is. The employer is too stingy too look after their own employee so they try and pass the buck. Complete dribble,” another said.