• EFTPOS & Point of Sale Solutions

Zeller Tipping Trends: What, Where and When Australians are Tipping

5 min. read06.10.2022
By Team Zeller

New Zeller data reveals tipping is becoming more popular.

Although the practice of tipping is far from mandatory in Australia, it’s becoming increasingly popular — particularly in certain industries. Whether this shift is attributable to a desire to help out businesses still in post-lockdown recovery mode, a show of gratitude for exceptional service, or something else entirely, it’s good news for business owners. Tips can help keep staff happy and motivated, at no additional cost to the merchant.

Yet with cash firmly out of fashion, tip jars are a thing of the past. Businesses need another way to accept tips from customers using their payment method of choice: cards and digital devices. For that, businesses need an EFTPOS terminal with flexible, functional tipping capabilities — like Zeller Terminal.

We analysed millions of transactions processed through Zeller Terminals across businesses all over Australia to discover what, where and when Australians are tipping.

Keep reading to learn:

  • how increasing your tips can improve your business

  • which businesses receive the biggest tips

  • when consumers are most (and least) generous

  • who Australia’s biggest tippers are

and, most importantly, how to prompt customers to leave a bigger tip with Zeller Terminal.

“If the tips are higher, the staff is happy”

Staffing issues are rife across business in all industries. Is time spent placing ads, interviewing candidates and training new staff a sunk cost you can afford? Keeping staff happy by giving them the tools to collect tips is one way to protect your business — and it costs you nothing.

Beyond the ability to collect tips, an EFTPOS terminal that can subtly prompt customers to leave a tip could even grow the amount and size of tips received. It’s likely a subtle tipping prompt will help you capture those customers on the fence about tipping; 57% of diners say that an automatic prompt during the EFTPOS payment flow makes them more likely to leave a tip.

Luca Balbo, Zeller merchant and owner of Park Street Pasta & Wine, says his staff are earning 30% more tips since switching to Zeller. The in-built tipping prompts are having a big impact on the team.

“If you’re a waitress and now, on top of your salary, you get a couple of hundred dollars in tips, obviously it’s pushing you to perform better,” says Luca. “If the tips are higher, the staff is happy.”

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Australian tipping trends in 2022

A growing number of Australians want to leave a tip, whether for purchases or services received. Zeller data shows the average Australian tip in 2022 is $16, or 7% of the total purchase amount. If your business doesn’t have a way of collecting those tips from customers, your staff are missing out.

Knowing who the most generous tippers are, which industries receive the highest tips, and when customers are most likely to tip, can help make business decisions — such as whether to extend your opening hours or close on a specific day of the week. We’ve crunched the numbers to get you that information.

Which businesses receive the most tips?

Perhaps unsurprisingly, those in the hospitality industry receive the highest number of tips. After all, the traditionally American standard of tipping after a meal has been creeping into Australian hospitality for a number of years. Yet new Zeller data shows consumers leave more generous tips for businesses in the charities and memberships, retail, beauty and travel industries.

Landscape (2)

For merchants in these industries, not prompting for tips could be costing their staff the chance to make an extra couple of hundred dollars. Simply toggling on tipping functionality on your EFTPOS terminal would solve this problem.

When are customers most generous?

The time and day of the week has a substantial impact on the size of tip a customer is likely to leave.

In the hospitality industry, for example, Monday is the worst day for tips. The average tip at the start of the week is just $13. After a busy weekend, customers' wallets have likely taken a hit and renewed commitments to a weekly budget are often made. However, by Tuesday, the average hospitality tip value peaks at $17.

Landscape (1)

In terms of volume, more diners leave a tip on Friday and Saturday — the busiest trading days for hospitality businesses. Late-night diners are the most generous with their tips; the value of tips after 10pm on Wednesday, Thursday and Friday evenings is more than double the average daily amount. These late-night diners tip between $37 and $46.

For those merchants considering whether to extend opening hours, it’s useful to know that staff are likely to want to work these late-night shifts — when diners are most generous.

Who are the biggest tippers?

Queenslanders are Australia’s most frequent tippers. Those in the Sunshine State are more than twice as likely to leave a tip than those in New South Wales. However, it’s the staff in Tasmania that are making the most from customer tips; the average tip in Tasmania is $23.

Landscape

If you run a business in Tasmania, Western Australia, Victoria or Queensland, where the average tip is over $17, your staff could be making a substantial amount of additional income simply by enabling them to accept tips.

How to prompt for tips with Zeller

A subtle on-screen prompt is the simplest way of collecting tips, while also increasing the likelihood that a customer will leave one.

Zeller Terminal can prompt each customer to leave a percentage-based or custom tip during the payment flow, without interrupting the transaction. Simply toggle on tipping from Zeller Dashboard or Zeller Terminal. Then, Zeller Dashboard will show you the value of tips accepted through the terminal — ready for you to easily distribute.

Tips are usually a reflection of a great customer experience. It’s important to make it as simple and easy as possible for customers to leave a tip; the fewer hurdles to tip, the more likely your customer is to leave one. Zeller’s tipping functionality is seamless and intuitive, maximising your opportunity to grow tips.

Grow your tips

Customise your payment flow for maximum tips with Zeller's tipping prompts.

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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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