• Business Growth & Optimisation

A Lesson in Hospitality from Melbourne's Little Italy

7 min. read30.09.2022
By Team Zeller

Discover 6 expert tips to run a successful café-bar.

Heartattack and Vine is situated at the village end of Lygon Street, where most shops and restaurants are owner-operator businesses. Nestled amongst stalwarts Tiamo, Brunetti and DOC, Heartattack and Vine is an iconic Melbourne venue in its own right — but it hasn’t always been this way. The owners had their work cut out for them when they first opened doors.

It took some time for the tight-knit community to accept these newcomers into the fold, which co-owner Nathen Doyle describes as “a really pivotal moment in our business, as we went from the new kids on the block to feeling like we were a part of the iconic Lygon Street”.

We sat down with Nathen to talk about what he’s learned over the past eight years, running Heartattack and Vine.

1. Human interaction is key to hospitality

Before opening Heartattack and Vine, Nathen worked with his original business partners  at a Minor Place and Wide Open Road. It was here that he learnt the importance of building a community, and he brought those learnings with him to his new venture on Lygon Street.

“We really wanted to break down the interaction between customers and workers and bring a sense of a shared space. We didn’t have menus when we first started out – you had to come up and chat to us, and part of that was to increase that human interaction with one another,” he says. “Obviously, we’ve had to put in systems over the years to adjust this model ever so slightly, but the main core is still there.”

Human interaction isn’t limited to front-of-house service; at this all-day espresso and cicchetti bar, it’s important for each member of the team to have face-to-face contact with customers.

“I also wanted people to come in and not know who was the barista, the chef, the bartender — because everyone was doing everything. The feeling was meant to be that anyone can serve you, and I like the idea of breaking down conventions in that space and being a bit more organic.”

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With every member of staff expected to process transactions and provide exceptional service, having an easy-to-use EFTPOS system is key to seamless service. For that, the team relies on Zeller.

“It’s been so much simpler since working with Zeller, from the customer interface and staff usability, to the fast tech support and cash flow. The transition has been so much better than we could have imagined!” says Nathen.

2. Make customers feel welcome

Whether you’re working on a laptop, on a date, out for wine with friends, or taking Grandma for lunch, the Heartattack and Vine team are experts at making customers feel at home. This, Nathen explains, is the Italian approach to food and hospitality in general.

“There can sometimes be a financial transaction that happens in hospitality that can dehumanise people behind the bar, and make everyone through the front door feel like a dollar sign. That transaction doesn’t happen in Mediterranean countries. There’s just food, and ‘come in and enjoy the space’ vibes,” Nathen explains.

“It’s not just about the food, it’s about the culture and how you feel in the space."

The team does this by letting the customer lead the interaction. There’s no need for a sales pitch, and definitely no time limits.

“For example, you can come in and enjoy a cup of coffee and we’re not going to bother you. People are coming here to spend ‘me time’ for themselves; it’s kind of a sacred time for everyone . We say ‘come in grab a seat wherever you can fit in, get what you want, come up and order whenever you like – this is your space’. This time is just for you and you use it however you want to use it. We’re not giving you a uniform way to be here.”

“The product we’re selling is a feeling, an experience.”

3. You can’t do everything

Small business owners often wear many hats but, as Nathen says, it’s not a one-size-fits-all job.

“I’ve learnt that you can’t do everything. You are not good at everything. You’ve got to find the people around you who can support you on the things you’re not good at,” Nathen says.

“We’ve got a great team: my business partner, the venue managers, our team of chefs and our front of house team. There is a spectrum of jobs that need doing to keep the business moving forward.  Often, others are much better than you in a range of these areas and in most cases they like doing them more than you do.

It’s important to relinquish total control, and give space for others to grow around you. It also means you can focus on the roles you’re good at and bring you joy. I’ve kind of taken on the role here of championing the brand, whereas my business partner Matt does much more of the back end stuff. It works really well!”

4. Be genuine in your offering

“What I love about hospitality is that it’s a form of art, it’s an expression. And the more it becomes monopolised, the expression becomes dilute. So in that sentiment, understand yourself, understand what makes you tick, and bring that into the world.”

Despite being situated in Melbourne’s own Little Italy, there’s no pizza or pasta on the Heartattack and Vine menu. Instead, the focus is on specialty sandwiches, coffee and Venetian-style ‘cicchetti’ — snacking plates.

“We’re not conforming to the rest of the street. We get so many people coming in asking us if we do pasta or pizza, simply because we’re on Lygon Street. They didn’t come in looking for us, but they decide to stay, and are pleasantly surprised by their whole experience.”

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It’s valuable advice for all business owners — not just those in hospitality.

“If you’re opening a business just to make money and to fill a hole in the market, it will only last for as long as there’s that hole. You have to be really passionate about what you do – it’s a lot of work once you get started.”

5. Pick your location wisely

Location can make or break a business — even in densely populated areas like Carlton, Melbourne. As Nathen explains, you’ve got to think about the type of customers you want to attract.

“I think this location is perfect. If we were at the other end of Lygon Street, we’re not sure if it would work. Areas we were looking at were Lygon Street, Flinders Lane… areas where people can catch a quick dinner and a show. I think what works well with this location is that we’re an integral part of the community,” says Nathen.

“This end doesn’t draw as much of the tourists who are floating up from the city. I was actually quite shocked by that when I moved in. I thought this was a bustling street where you could put any type of restaurant here and it would work, but that’s definitely not the case. A McDonalds wouldn’t work, and didn’t when they tried years ago. We definitely service the community around here and that’s why we fit in so well.”

6. Staff for a reason, not just a season

Staffing issues are rife, impacting all types of businesses across Australia. However, thanks to smart hiring tactics and an impressive retention rate, Heartattack and Vine have fared better than most.

“We have a great culture, and I feel like we’ve maintained our staff because of that. We managed to keep our whole team from the beginning of lockdown until the end,” says Nathen.

“The reality is that it’s the simplest of things that work the best. We post on platforms like Seek and Scout, but what happens is often the best people are the ones that have done their research and come here when they know they want a job specifically with us. We’re not threadlike, we’re fast paced, and dynamic in what we do. The team has to wear several hats at once. You’re not just a barista — you’re a barista, a dishwasher, a chef, a manager, a bartender, a server.”

When it comes to hiring new staff, Nathen’s top tip is to hire for enthusiasm and culture fit.

“We’re really just focusing on people that want to be here — rather than just getting in anyone. We look out for our team and the ability for the team to support each other. We’re like a family.”

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Bar Positano: from Food Truck to Brick-and-Mortar Eatery

Meet the all-authentic Italian food truck navigating an expansion during COVID-19. The evolution from popular mobile food truck to permanent bar, deli and cafe seems a natural progression for Bar Positano . After a successful eighteen months serving paninis, cheese boards, and other Italian delights from the bay window of their highly instagrammable van, co-owners Anthony Porra and Luca Andolfo decided to put down stumps in Sydney’s Surry Hills and shift their focus to the sit-down dining experience. Although a sudden citywide lockdown threatened to derail the grand opening of Bar Positano’s new brick-and-mortar location, the duo were quick to adapt. Celebratory spritzes were swapped for takeaway cocktails and the deli was stocked with take-home pasta so locals could dish up their own cure for those holiday cravings. We spoke to Luca and Anthony about the challenges they’ve faced so far, and why now’s the perfect time to bring a slice of the Amalfi Coast to Surry Hills. Tell us a bit about how Bar Positano first started. We first started out in the events industry, providing event hire and styling services for many weddings and other events. A lot of clients use pop-up food and drink vendors for a more casual style, so we decided to add a mobile bar to our offering. Being of Italian heritage, we thought we could offer a unique and authentic food truck, focusing on quality products and service for weddings, private and public events. Then we were in Surry Hills one evening and saw the vacant shop, which had a nice unique style and a sunny corner position. Many Australians travel and love the Italian summer atmosphere, when it comes to alfresco dining and aperitivo. We’ve always wanted to bring that experience to Sydney, and thought this would be a perfect location to test our idea. What was the biggest challenge you faced, establishing a permanent site? Being a food truck, we always tailored our menu based on the event or location we were serving. We also kept to a limited menu, as it is always a challenge working within such a small space! Moving into a physical location made us really think about our target market and demographic, as well as a gap in the market which we wanted to target. It is always challenging establishing a new business in a niche category, as you don’t know whether it will work or not. But we believe in it and really love it ourselves, so we just hope that everyone else does too. How has COVID-19 impacted your business? COVID-19 is a huge challenge to all businesses, but we decided to open up anyway as we wanted the community to see what we have to offer — albeit with a limited menu at the moment. We also sell smallgoods from the deli and pasta, sauces and other Italian products, which are a benefit to locals during lockdown. It’s the right time for us, particularly because we are opening in winter — at a time people normally head off overseas for a summer holiday. Despite the current restrictions, we’re giving customers a feeling of being overseas on holiday, or eating and drinking what they normally would if they were in Italy. We have been lucky enough to receive support from the locals, grabbing something takeaway and supporting our new business. What inspired you to make the switch to Zeller? How are you finding it? What we were looking for was a reliable system that was simple to use in a fast-paced environment. We love that the terminal not only looks good and suits our decor, but it is so simple to use with extremely low rates. The customer service and support is really great, the onboarding simple and straightforward, and the general daily use is so simple and reliable. Really happy we chose Zeller! What have you learned about running a business, with everything going on this year? To really think about our business concept, and how we can still be true to our brand and offering while remaining versatile so we can adapt as situations change.  For instance, instead of sitting down to an antipasti board and Aperol Spritz — which is what we initially envisioned — we decided to advertise takeaway deals on our social profiles and package everything up, including the alcohol, so people can enjoy the same product at home, or wherever they may be. It is so important to stay in touch with the community by communicating on social media, the website, and as best you can in store for anyone who passes by. What’s next for Bar Positano? We are really looking forward to opening our doors and having people sit down and enjoy the space. At the moment it feels like a bit of a tease, as we have only been offering takeaway coffees, panini, and a limited menu from the deli. It will be great to be able to operate at full capacity, for both our customers and staff. Do you have any advice for other business owners at this time? Stay positive, be creative and hang in there! The community is really supportive and tries to support as best they can. Restrictions will eventually lift, so just take it day by day and be flexible with your product, trading hours, and how you operate your business.

How to Find the Best POS System for Your Restaurant

With hundreds of point-of-sale (POS) providers in Australia, selecting the right one can be an overwhelming task. In this article, we outline the key factors to consider when choosing a POS, and recommend some of the best providers for your industry. If you’re a new or existing business owner, by now, you probably know  what a point-of-sale system is and how it works . The next step is choosing a solution that is appropriate to your business size and industry. To help make the right decision, read our list of considerations below and make note of which ones are the most (and least) important to your business, so that when you’re in conversation with a POS provider, you can be well equipped to ask the right questions. Then, learn which POS providers are the most popular among cafes, quick-service restaurants, dine-in restaurants, retail businesses, and bars and clubs. Important considerations when choosing the best POS system for your business. Hardware POS hardware refers to the physical devices that make up your POS system. This could include any or all of: a computer or display unit, a receipt printer, a barcode scanner, a cash drawer, and an EFTPOS machine. While large businesses may require a full suite of hardware, many smaller businesses can get away with little more than a tablet or smartphone. Portable devices like Zeller Terminal 2 (which has a POS system built-in) are often referred to as mobile POS or ‘ mPOS ’, and they provide excellent functionality, allowing merchants to do everything from managing their inventory to taking payments all from the one machine. Software The functionality of the POS software will arguably be the biggest factor in determining your final choice. If you are a retail business, you may want to prioritise a robust inventory management system – this will allow you to easily track stock levels, anticipate when popular items will run out, and stay on budget. For hospitality businesses, a floor management system may also be required to manage table seating and reservations. Additional functionality includes sales reporting, for managing cash flow; employee management, for automatically logging hours and tracking performance; and customer relationship management (CRM), for collecting customer data and implementing targeted marketing campaigns. While these are the most common and basic features of POS systems, those designed for individual industries will offer even more specialised features. Ease of use Think about who will be using the POS system on a day-to-day basis. Do you have a high turnover rate of employees? If so, consider how easy it will be to train new staff to use the software. A simple, intuitive interface will greatly reduce human error, which, in a fast-paced environment, could be critical. Integration For most businesses, their POS provider cannot just work alone, it will need to be able to integrate into a number of different systems. The accounting software,  payments provider , and/or e-commerce platform you use (or are planning to use) should ideally integrate with your POS system. By enabling information to flow easily between systems, you will greatly increase the efficiency of your operations, saving you and your team time and money. Take note of what platforms a POS provider integrates with before making a decision, as this can become a frustrating roadblock later on if it is neglected. Customer support How quickly and easily you can contact your POS provider is something that can be easily overlooked – but it’s extremely important. If you decide to go with a POS system that offers all the bells and whistles, but doesn’t have anyone to pick up the phone when you need help, this will quickly lead to frustration and potentially lost revenue. Check the provider’s website and LinkedIn: are their offices based in Australia? What are their customer service hours? Do they have a robust support centre with help articles and troubleshooting resources? Will you be assigned an account manager? Additionally, how quickly you need to get up and running is an important consideration. Many traditional POS providers require a technician to come out and set up the hardware and software, whereas newer web-based systems are often self-service and can be entirely set up remotely. Multi-location Do you run a multi-location operation or are you planning on scaling in the future? If so, it’s important to be sure that the POS software is equipped to deal with multi-venue requirements. Being able to push updates to machines at several venues at once, aggregating reporting from all venues, and monitoring stock transfers between locations, are just some of the features you’ll want to ensure your POS provider can support. Cost With varying pieces of equipment, features, minimum requirements, and pricing models, understanding exactly how much you’re going to pay for a POS service is not easy. To avoid bill-shock later on, make sure you understand exactly how each aspect of the service is priced. Are you buying the hardware outright or will you access it on a rental agreement? Is the software licence a one-time purchase or a monthly/annual subscription? Is there a cost associated with ongoing support and maintenance? Will you pay a fee each time a transaction is processed through the POS? Ensure you ask any potential POS provider all these questions before signing a contract. Best POS providers by industry The table below presents some of the best POS providers available to Australian business owners, organised by industry, with some of their noteworthy features listed on the right hand side. For a comprehensive list of features, be sure to contact the POS provider directly and request a demo before signing up. Coffee Shops Restaurants QSR Retail Bars and Clubs Salon Add and manage items via Zeller Dashboard or directly on Zeller Terminal 2. Bulk import an item library from a previous POS. Update item descriptions, images, prices, categories, and generate automatic SKUs. Customise items with modifiers such as add-ons, toppings, or special requests. Create product variants such as size, colour, flavour, or style. Customise grid to quickly access frequently used items, discounts, or categories. Instantly push product updates to entire fleet of terminals across multiple locations. Offer customers an itemised receipt via email, SMS, or QR code. Create and manage discounts and add descriptions for greater clarity. Understand what you are selling and when with detailed reports (coming soon). POS is automatically installed on Zeller Terminal 2, with no monthly or additional fees. Online and QR code ordering Partners with UberEats, DoorDash, Deliveroo, Menulog, Fantuan, Hungry Panda Interactive kitchen display screen to help streamline kitchen operations Smart inventory management and ingredient control to keep food costs down Order status screen to show customers when their order is ready to be collected Pocket manager mobile app Customer-facing display shows customer's order back to them before payment Centralised multi-site management for tiered pricing, products, menu, surcharging Integrates with Zeller Terminal Originally created for the fast-paced Melbourne bar scene Designed to work online or offline in unexpected outages Support teams available 24/7 Supports the creation of floor maps to monitor the status of tables Plugs into online bookings and allows you to add reservation notes Employee hour monitoring Generates stock variance reports and automates orders based on stock thresholds Membership and loyalty system designed for the hospitality industry Integrates with Zeller Terminal Developed by a team with decades of hospitality and retail experience Receive funds overnight with secure payments provided by Zeller Ability to enable or disable features as your business requires Focus on simple design and speed Support teams available 24/7 Counter, table, room, pick up or delivery options Free online store Integrates with Zeller Terminal Centrally manages multiple venues Supports orders from iPad, table, kiosk, QR code, food delivery and online for pick-up Loyalty system manages points, discounts, deposits, gift cards, and friend referrals Kitchen display allows you to fine-tune kitchen and chef workflows Automatically sends orders to the correct preparation stations In-built staff management tool to manage shifts and payroll processing Supports digital or physical gift cards created and redeemed directly within ZiiPOS Integrated bookings let customers book directly to the platform Integrates with Zeller Terminal Online and QR code ordering Partners with UberEats, DoorDash, Deliveroo, Menulog, Fantuan, Hungry Panda Interactive kitchen display screen to help streamline kitchen operations Smart inventory management and ingredient control to keep food costs down Order status screen to show customers when their order is ready to be collected Pocket manager mobile app Customer-facing display shows customer's order back to them before payment Centralised multi-site management for tiered pricing, products, menu, surcharging Integrates with Zeller Terminal Recreates your venue’s table layout with a floor plan Training mode simulates the POS flow without affecting till balances or stock levels Stock batches let staff record delivery of stock, with quantity, weight and temperature Stocktakes can be performed on the POS and sent for review and processing Supports conditional pricing that applies at checkout when conditions are met POS set up can be done either on-site or remotely Client Portal offers free resources and videos for staff training Support teams available 24/7 Integrates with Zeller Terminal Originally created for the fast-paced Melbourne bar scene Designed to work online or offline in unexpected outages Support teams available 24/7 Supports the creation of floor maps to monitor the status of tables Plugs into online bookings and allows you to add reservation notes Employee hour monitoring Generates stock variance reports and automates orders based on stock thresholds Membership and loyalty system designed for the hospitality industry Integrates with Zeller Terminal Online and QR code ordering Partners with UberEats, DoorDash, Deliveroo, Menulog, Fantuan, Hungry Panda Interactive kitchen display screen to help streamline kitchen operations Smart inventory management and ingredient control to keep food costs down Order status screen to show customers when their order is ready to be collected Pocket manager mobile app Customer-facing display shows customer's order back to them before payment Centralised multi-site management for tiered pricing, products, menu, surcharging Integrates with Zeller Terminal Hard-wearing kiosks, tablets, terminals, and displays that withstand heavy use Alerts customers when orders are ready for curbside pickup or on way for delivery Helps customers reorder favourite items and tracks purchases to deliver rewards Direct connection to Uber Eats, Deliveroo, Postmates, DoorDash, and others Realtime updates to menu items, ingredients, and prices across multiple locations GPS-enabled web app to automate contactless pickup Self-service kiosk hardware and integration with 3rd-party kiosks Tracks menu profit, down to the ingredient and digital channel Oracle Cloud Marketplace offers a robust ecosystem of integration partners Integrates with Zeller Terminal Loyalty apps and cards, mobile apps, gift cards and in-store messaging Multiple ordering options: web, mobile app, table, kiosks, drive thru, QR code Fixed-Cost delivery, and direct integration with Uber Eats, Doordash, and Menulog Tailored, branded apps offering customers coupons, discounts and online ordering Digital media boards to display messages to your customers in-store Paperless kitchen display and management system to pass orders between stations Drive thru integration Integrates with Netsuite, MYOB and Xero Integrates with Zeller Terminal Customisable interface lets you create branded touchpoints Supports bill splitting with multiple payment options per split Customisable workflow allows you to streamline counter order entry Supports menu modifications to any product or menu flow Supports management and customisation of keypads, and products, including images Integrates with Zeller Terminal Centrally manages multiple venues Supports orders from iPad, table, kiosk, QR code, food delivery and online for pick-up Loyalty system manages points, discounts, deposits, gift cards, and friend referrals Kitchen display allows you to fine-tune kitchen and chef workflows Automatically sends orders to the correct preparation stations In-built staff management tool to manage shifts and payroll processing Supports digital or physical gift cards created and redeemed directly within ZiiPOS Integrated bookings let customers book directly to the platform Integrates with Zeller Terminal Add and manage items via Zeller Dashboard or directly on Zeller Terminal 2. Bulk import an item library from a previous POS. Update item descriptions, images, prices, categories, and generate automatic SKUs. Customise items with modifiers such as add-ons, toppings, or special requests. Create product variants such as size, colour, flavour, or style. Customise grid to quickly access frequently used items, discounts, or categories. Instantly push product updates to entire fleet of terminals across multiple locations. Offer customers an itemised receipt via email, SMS, or QR code. Create and manage discounts and add descriptions for greater clarity. Understand what you are selling and when with detailed reports (coming soon). POS is automatically installed on Zeller Terminal 2, with no monthly or additional fees. Keeps all sales channels in one POS software (in-store, events, pop-up stores, online) Designed to work online or offline in unexpected outages Web-based point of sale compatible with iPad, PC and Mac Supports attaching notes to orders to keep track of requests and special details Offers lay-by option and ‘on account’ sales Social media links are included on email receipts to engage customers Printed and emailed receipts can feature custom messages Transaction logs help measure team’s performance Syncs with business systems like Xero, MailChimp and Magento Integrates with Zeller Terminal Jewellery specific point of sale and inventory management software Offers inventory trends and compares performance against 400+ Edge users eInvoicing tool included Job tracking for repairs, special orders, and custom jobs Reporting on daily operations, marketing effectiveness, inventory performance Customer relationship management system to build customer loyalty Integrates with Zeller Terminal ‘Google like’ predictive product search with cross-sell/upsell recommendations Customer profiles show previous purchases, store credits, vouchers and loyalty info Designed to work online or offline in unexpected outages One single report for supplier Buy Price, COGS, RRP, POS Price and Promo Price Compatible with PC, iPad and Mac devices Home delivery, inter-store transfers, warehouse pickup, supplier orders, pre-orders Flexible payment options such as Buy Now – Pay Later, lay-bys, and accounts sales Segments customer profiles to run exclusive promotions for specific groups Loyalty programs with minimum spend, points expiry dates and bonus multipliers Customisable email templates sent from POS such as click-and-collect alerts Supports generation of quotes, A4 invoices, and other related documents at the POS Integrates with Zeller Terminal Originally created for the fast-paced Melbourne bar scene Designed to work online or offline in unexpected outages Support teams available 24/7 Supports the creation of floor maps to monitor the status of tables Plugs into online bookings and allows you to add reservation notes Employee hour monitoring Generates stock variance reports and automates orders based on stock thresholds Membership and loyalty system designed for the hospitality industry Integrates with Zeller Terminal Developed by a team with decades of hospitality and retail experience Receive funds overnight with secure payments provided by Zeller Ability to enable or disable features as your business requires Focus on simple design and speed Support teams available 24/7 Counter, table, room, pick up or delivery options Free online store Integrates with Zeller Terminal Add and manage items via Zeller Dashboard or directly on Zeller Terminal 2. Bulk import an item library from a previous POS. Update item descriptions, images, prices, categories, and generate automatic SKUs. Customise items with modifiers such as add-ons or special requests. Create product variants such as size, colour, or style. Customise grid to quickly access frequently used items, discounts, or categories. Instantly push product updates to entire fleet of terminals across multiple locations. Offer customers an itemised receipt via email, SMS, or QR code. Create and manage discounts and add descriptions for greater clarity. Understand what you are selling and when with detailed reports (coming soon). POS is automatically installed on Zeller Terminal 2, with no monthly or additional fees. Tailored POS for wellness and beauty businesses only Integrated self-service booking system for clients and owners Inventory and supplier order management Management of multiple venues from a single account Points-based loyalty program for client retention Detailed sales, client, and appointment reports Create an online profile for salon visibility under marketplace Support via email and extensive how-to guides Offers additional paid features for enhanced functionality Customisable online and app-based booking system Integrated POS for sales, transactions, and scheduling Various tools for detailed client profiles and preferences Comprehensive reporting on sales, inventory, and staff performance Staff management with dashboards, timesheets, and rosters Loyalty programs to retain clients Support is available through app and online resources Integrates with various tools and software add-ons Let Zeller manage your payments. No matter how you prefer to manage your checkout process, Zeller is Australia’s leading payments provider, tailored to meet your business needs. For smaller or mobile businesses with a limited inventory, Zeller offers Zeller POS Lite, built into Zeller Terminal 2 at no extra cost. Larger, more established businesses can benefit from Zeller Terminal’s seamless integration with over 600 different POS platforms. Whether you’re looking for a simple, cost-effective mobile solution or a fully integrated EFTPOS machine with advanced features like tipping, bill-splitting, and custom screensavers, Zeller’s platform is designed to evolve with your business. Chat with our sales team today to set up Zeller POS Lite, or explore our Zeller Partner Hub to find the perfect POS integration for your business. POS software without the price tag. With one low flat transaction fee of 1.4%, no monthly subscription fees or lock-in contracts, Zeller Terminal 2 is Australia’s most affordable all-in-one POS and payments solution. Learn more

Tipping in Australia: How to Prompt for Maximum Tips

Diners are more willing to tip than ever, but only if prompted. Whether it’s a tip jar on the coffee shop counter, a line for a gratuity inclusion on the restaurant bill, or a prompt on the EFTPOS terminal screen, a degree of tipping has been slowly integrated into Australia’s hospitality culture over time. Yet it’s only recently that diners have begun embracing the opportunity to leave a few extra dollars to show their appreciation for great service. Zeller research , conducted in September 2021, found 70% of Australians are willing to leave a tip when dining out or taking away. Compared to prior research, this represents a significant shift in diners' attitudes towards tipping; Australians are 233% more likely to leave a tip today than they were 4 years ago. Not only that, Zeller research also uncovered that diners aged 35 and under are the most likely to tip — and that, overall, diners are more likely to leave a tip when the transaction is processed through an EFTPOS terminal and they are prompted to do so. Keep reading to discover more about the growing tipping trend, and how hospitality merchants can use these insights to grow tips. What’s driving the trend towards tipping? It’s fair to say that tipping is not ingrained in Australian culture. Unlike in the United States, where a percentage-based tip is considered customary, there is no social or cultural expectation to leave a gratuity when dining out. Nevertheless, it’s becoming increasingly common for diners to leave a tip at restaurants, bars, cafes, coffee shops, and even takeaway venues — largely thanks to the convenience of cashless payments, and a generational shift in mindset. For merchants, this represents an opportunity to improve staff happiness and reduce turnover; enable your employees to get tips, and you’ll be more likely to retain them for the long-run. Technology prompts more frequent tipping Research shows that in 2017, just 1 in 5 Australian diners (20%) would regularly leave a tip. Zeller’s new research shows this has now increased to 70% — and that automatic tipping prompts are driving the trend.  Belinda Porra, Manager at Bar Positano, has experienced this shift firsthand. “Payment technology makes a huge difference to tipping. Traditionally people tipped with their spare change, but now a lot of people don’t carry cash. The easier it is to tip at the point of payment the better it is for our venue and our staff,” she says. The correlation between this generous trend and the death of physical cash is clear; the days of slipping a note into the receipt folder are over. The majority of diners are paying for their meals with a card or smart device these days, and 57% of diners say an automatic prompt in the payment flow would make them more likely to leave a tip. After all, it’s far easier for a diner to simply tap your EFTPOS terminal than rummage around for cash. Plus, when tipping via card or smart device, diners aren’t restricted by the amount of notes or coins in their wallet. The generational tipping point The increasing frequency at which Australian diners are tipping can also be attributed, at least in part, to the socially conscious Millennial and Generation Z cohorts. Zeller research shows an increasing tendency to tip in younger diners; 81% of 16 to 25-year-olds and 76% of 25 to 35-year-olds say they would regularly leave a tip. These younger generations are also the least likely to carry cash, instead opting for contactless payment methods such as cards and digital wallets on their smartwatches and mobile devices — which make tipping all the more convenient. That’s not to say older generations don’t tip, yet it indicates a growing generational shift towards tipping. As these diners age and a new generation begins visiting hospitality venues, merchants have an increased opportunity to benefit from this societal shift and grow their tips. The question is, how do you encourage diners to leave the highest tip they are willing to pay, so you’re not leaving money on the table? The key is prompting your diners with the right percentage-based tip amount in the payment flow — so that more diners elect to leave a tip, more often. How much are your customers willing to tip? We analysed thousands of transactions, processed via Zeller Terminals , to determine how much (or how little) diners across Australia tip, and discovered the two most influential factors are the transaction amount and the venue’s location. 1. Average transaction amount It would seem logical to assume that the higher the transaction, the higher the tip — but that’s not the case. Zeller data shows that transactions under $10 and transactions over $100 fetch the highest tips, when considered as a percentage of the total transaction amount. Transactions of $10 and under typically attract a tip of 6.94% — meaning that a $10 sandwich would fetch an average tip of 69 cents. On the other hand, diners whose bill comes to over $100 will leave a 6.45% tip on average. To put that in perspective, a $150 meal fetches an average gratuity of $9.67. This finding shows that the average transaction amount must be taken into consideration when setting tipping prompt amounts. The average tip for a venue’s average transaction amount should be included as an option, rounded to the nearest number. This is the amount the average diner is comfortable paying, so it’s probably the option they’ll select without too much thought. 2. Venue location Tipping attitudes vary widely across Australia, so it’s also important for merchants to consider location in determining their tipping prompt amounts. In New South Wales, diners leave an average of 3.67% — whereas transactions in the Australian Capital Territory fetch a 9.6% gratuity on average. Understanding the level at which your diners currently tip is important. In New South Wales, for example, you may turn diners off tipping entirely if you prompt them to leave  a 15% gratuity — because the average tip is 3.67%. Prompt your diners to tip at the level they are most comfortable, and they'll be more likely to take the option. Customising your payment flow for maximum tips Although there’s a clear trend towards tipping, it remains important to provide diners with options; not everyone will be comfortable tipping the same amount. Prompt a diner to leave a bigger tip than they are comfortable with, and they likely won’t leave one at all. Zeller Terminal allows you to set three custom percentage-based tipping points, or nudge the diner to enter an amount. In setting your tipping amounts, carefully consider how much your customers say they are willing to pay. For example, a cafe owner in Queensland whose customers typically spend around $55 might set their tipping prompts at: 5% — as the average tip for this price point is 4.54% of the transaction amount 7% — as the State’s average tip is 6.93% of the total bill 10% — as some diners will naturally tip more Alternatively, you could invite diners to leave a tip of any amount they wish. However, the convenience of simply tapping one of three options is difficult to beat. You can track tips accepted via Zeller Terminal in Zeller Dashboard and, after a month or so, determine whether your venue is achieving the average tip amount for its location and average transaction amount. Updating your tipping prompts is simple, and will update the settings across multiple terminals and locations instantly. As more and more Australian diners embrace tipping, it pays to ensure you have the ability to accept gratuities. Your staff will be grateful for the opportunity to take home a little extra cash, and you’ll benefit from happy workers with the additional financial motivation to provide every customer with exceptional service. By sharing your details with us, we may contact you from time to time. We promise we won’t bug you — and you can unsubscribe from communications at any time.

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