Here’s a Tip: How Australia Tipped in 2024.

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.

Growing your staff tips is “a win-win for everyone”. Luca Balbo spent four years on the Park Street Pasta & Wine restaurant floor as venue manager before climbing the ranks to business ownership. “I’ve been running the business for years. It was mine without being mine,” he says. “I helped my old boss to develop this idea and I supported the project 100%. Now it’s finally mine, and I can make it even better.” In his new position of ownership, Luca has been able to make a number of changes — including finding a new merchant services provider to support his ambitious growth plans. Making use of the subtle tipping prompt functionality, Luca’s staff have reaped the benefits. “We have had an increase of around 25 to 30% in tips since switching to Zeller,” he says. "Obviously, that pushes you to perform better." We sat down with Luca to learn more about his theory of the psychology of tipping, how he’s helping his staff earn more tips than ever before, and the strategies he’s using to grow Park Street Pasta & Wine to new heights. Meet Park Street Pasta & Wine Park Street Pasta & Wine is tucked away in a suburban yet central pocket of South Melbourne, which hasn’t yet found its way on to the tourist map. Because of this, locals make up about 90% of the customer base. As Luca explains, it’s all about “community and consistency. For me, it’s the best way to start a business.” Establishing a successful hospitality business is no easy feat, especially in a city where competition is cutthroat, and standards are high. “I think you can find decent to amazing food everywhere you go in Melbourne. So I try to create this little point of difference based on lots of things — not just based on good wine and good food,” says Luca. “You have to find your point of difference. You have to give this extra value.” For Luca, one of those points of difference is exceptional service. Recommending the perfect wine to accompany a dish, or spending an extra few minutes to explain the flavour profile of the famous Agnolotti dal Plin (oozing pockets of Gippsland veal and wild rabbit), for example. It’s all these extra human interactions that drive customers to leave a tip, Luca says. “I’ve read about it, and I think that 60 or 70% of a tip is inside a person. The other 30% is the role the waiter plays.” Australians’ shifting attitude to tipping Recent Zeller research found 70% of Australian diners are willing to leave a tip, which represents a significant shift in attitude. In fact, diners are 233% more likely to tip today than they were in 2017. Zeller research also found diners are more likely to leave a tip if prompted to do so during the payment flow. Further analysis of thousands of transactions processed through Zeller Terminals shows Queenslanders are the most likely to leave a tip — diners in the Sunshine State are twice as likely as New South Wales diners to leave a tip. Tasmanians are the highest value tippers, leaving an average tip of $23 per outing. The data clearly shows that subtle tipping prompts during the payment flow are a powerful strategy for hospitality owners who want to help their staff earn more money in tips. Driving a 30% increase in tips with Zeller’s tipping prompts Zeller’s subtle tipping prompts give diners the opportunity to show their appreciation for the stellar service provided. Park Street Pasta & Wine is one Zeller merchant making the most of this powerful functionality to drive 30% more customer tips. “The setting of Zeller, the way it’s laid out, it’s promoting the tip from the customer's point of view. You’ve got the 5, 10, 15% and custom amount. It’s like, if I come to you and say 'would you like some tap water?' 90% of the time, you say yes. And I pour you some tap water," says Luca. "If I come to you and say, ‘would you like some sparkling water, or just a tap water?’ It’s more possible you’re going to get sparkling water instead." “It’s the way to sell things. To show things. To promote things. I think it’s really clever.” A fresh approach from the restaurant floor First-hand experience with the restaurant’s customers and its staff, coupled with a background in economics, has given Luca the hand-on knowledge and skills to grow Park Street Pasta & Wine to new heights. He’s in a unique position, having spent years establishing trust and respect from staff while receiving direct feedback from customers. “I think it’s fundamental that a person who runs a business has been working in the industry for many years. Empires of billions and millions of dollars have been run into the ground in two years after being bought by a person who doesn’t know anything about hospitality.” When COVID lockdowns shuttered the restaurant, and there was no venue for the venue manager to manage, Luca donned an apron and got to work with the rest of the team. “I’m not a chef. But during COVID, we opened the mercato — this little supermarket we made downstairs. We divided between us with the Jobkeeper, and I was making the pasta,” he says. “We kept everybody. We didn’t make anyone redundant.” “I think it’s really important that you’re on the same page as the dishwasher, the bartender, everybody. You have to be close to the people at your restaurant. If you’ve got respect from them, you can go anywhere.” Luca’s decision to enable Zeller’s tipping prompt functionality is one of the ways he is supporting a positive work environment, and it’s having a positive snowball effect on the business. “If the tips are higher, the staff is happy. If they're happy, they work better.” “The thing that I like the most is to give my staff the possibility to have a little bit more money," says Luca. "If you create more positivity, they’re willing to provide better service and it’s a win-win for everyone.”

Despite a cost of living crisis, customers are rewarding great service more than ever before . Whether it’s a conscious effort, or whether it’s a product of the simpler, cashless way in which we now pay: the digital tip jar is fuller than before. With over 35,000 businesses across the country using Zeller Terminal, we’ve analysed millions of transactions and the proof is in the payments. Australians are not only tipping more frequently, but the amount they are tipping has significantly increased since last year . It’s a heartening revelation that demonstrates that even faced with a challenging economy , Australians are still willing to shell out more to give staff in the service industry a helping hand. Aussies love tipping, and not just for footy. Zeller data shows that the average Australian tip value has increased by 12% since last year, growing from $16.05 to $17.93. At a time when discretionary spending is down , it’s a surprising result that shows the willingness of Australians to reward great service in times of need. What’s more, the number of tips has increased by a whopping 132% since January last year, demonstrating that the reflex to leave a tip is strongly on the rise. In tips, Melbourne pips Sydney. For service providers working in Melbourne, there’s good news. The average tip value left by Melburnians surpassed those of their Sydney counterparts by an impressive 57%, averaging $18.57 in the southern city compared to $11.81 up north. It’s a trend that could be attributed to Melbourne’s historically strong dining culture, or greater cost of living pressures in Sydney. Zeller Terminal, a front-of-house team player. For Matteo Neviani, general manager of Trattoria Emilia in Melbourne’s CBD, the increase in tips hasn’t gone unnoticed. "We've observed a significant increase in the tips we've received recently.” The busy Italian restaurant has indeed seen a 30% jump in their tips since March this year and Matteo puts it down to a growing trend among Australian diners as well as a smoother payment process delivered by Zeller Terminal , “It’s a more streamlined customer experience,” he says. Similarly, at Clover Wine Bar on Swan Street, Richmond, owner Lyndon Kubis has also seen a remarkable increase in tips since switching to Zeller, “Zeller Terminal has a very inviting interface to want to tip. So it certainly welcomes tipping,” he explains. Regional Australia joins the trend. While the generosity of tippers is more pronounced in metro areas, the growing trend in tipping appears to be extending well beyond the major ring roads. On average, customers in bigger cities tip 12% more in value than those in regional areas, with metro diners offering a gratuity of $18.08, compared to $16.07 in rural areas. However, since last year, diners in regional Australia have increased their average tip value by an astounding 79% year on year, from $9 to $16.07. In Airlie Beach, Queensland, Brittany Yanapa, who works as a venue manager at restaurant La Tabella says it’s got a lot to do with the return of tourism as well as their EFTPOS process: “We’ve noticed an upswing in tipping” she says, “We put it down to the influx of tourists as well as the user-friendly nature of our Zeller EFTPOS Terminals . It guides customers through the tipping process, and enhances the overall experience.” A tip off for the hospitality sector. Taking a deeper dive into hospitality shows a diversification in Australian tipping culture. While table service venues are still those that receive the highest tips, with an average tip value of nearly $20 (representing an 8% increase since last year), takeaway restaurants are now also being rewarded for their service. This year, average tips for the take-out sector totalled $7.52, up 6% from last year. Meanwhile, at bars and clubs, tips were down by 23%, a trend shared with cafes where tips also declined by 19% since last year. For beauty, we’ll spend big. Hairdressers, nail technicians and massage therapists must be doing something right because it’s the beauty sector that comes up at number one on the leaderboard of highest-tipped industries. This year, Australians left an average tip of 21% of the total bill after their beauty appointments, surpassing all other categories and experiencing a remarkable increase of 121% since last year. In second place, the overall hospitality sector saw its tips increase to an average of 7%, while the taxi and transport industry remained steady on 5%. Power to the people. While tipping isn’t for everyone, we’re impressed to see a growing trend of Australians adding a gratuity to their bill to reward an outstanding customer experience. Zeller Terminal ’s built-in tipping feature, which can be turned on or off right from the EFTPOS device, is a small but important feature that nurtures a culture of generosity, and incentivises servers and staff to elevate their customer service experience. Want to find out more about Zeller Terminal?