Australia

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Australians’ tipping habits are not keeping pace with higher menu prices, new research shows, as household costs soar and diners grapple with pandemic-era hospitality charges.

A report by Lightspeed Commerce, using payments platform data, found that the average tip amount dropped in August to 8.1% of a total bill.

Andrew Fraser, Lightspeed’s managing director for Asia Pacific, said more customers have been leaving tips in recent years, although the size of the gratuity has fallen as a percentage of the total bill.

“With inflation driving costs up, this is impacting the additional money that is able to go back to hospitality staff for their service.”

Tony Green, chief executive of the Australian Foodservice Advocacy Body, said the long-term practice in Australia had been to tip about 10% for good service.

This also raises a question over whether the wait staff, or restaurant owner, will receive the gratuity, although Tax Office rules dictate the venue operator must pass the tip to the employees.

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