The small text in the bottom left of Sydney restaurant Lana’s menu states that there is a service charge. Photo / Google
The small text in the bottom left of Sydney restaurant Lana’s menu states that there is a service charge. Photo / Google
A Sydney restaurant has responded after a customer aired their frustration over a tip being added to their bill without their consent – a move that has reignited the debate over whether Australia’s tipping culture is becoming more like that of the United States.
The discussion was sparked by aReddit post detailing a visit to Lana, an upscale Italian restaurant in Sydney’s Circular Quay, owned by hospitality giant House Made Hospitality.
The post included a photo of the bill, which came to $221 before a 7% service charge of $15.47 was added, bringing the total to $236.45 (NZ$255.61).
The original poster wrote: “This is the second occasion I have seen this at a fine dining Sydney restaurant. Is this slowly becoming the norm? Is the gratuity actually shared with the staff who go above and beyond?”
They also noted the service charge was detailed on the menu in “tiny print”.
“Thanks for the heads up,” said a third, “I am not okay with paying an auto-gratuity. This is Australia. Once tipping culture takes hold, it will never go away.”
Another user called it “absolutely disgraceful behaviour” and said it “needed to be called out”.
Restaurant responds
Lana responded to the backlash, telling news.com.au, “The optional 7% gratuity at Lana is communicated at multiple stages during the booking process (on our website, in the booking widget, in the confirmation email), written on the menus, and verbalised again when the bill is presented, and is designed to reward our team for their dedication and hard work.
“It also serves to incentivise exceptional service and support increased tenure within our industry, at a time when experience is hard to find, and living costs are increasing.
“This surcharge is not mandatory and can be removed at any point, no questions asked nor judgment given, should a guest request it.”
The small text in the bottom left of Sydney restaurant Lana’s menu states that there is a service charge. Photo / Google
The restaurant explained that gratuities are managed through a third-party software program (which it believes is the fairest approach and ensures transparency), and every dollar goes directly to the team working during that shift, including the kitchen.
“Our goal is to deliver a memorable dining experience for our guests while rewarding our team for their efforts,” the spokesman continued. “However, we fully respect that not all guests may wish to pay the gratuity, which is why it remains entirely optional.”
The ‘awkwardness’ of opting out
Despite this, commenters were sceptical that guests would feel comfortable opting out of the charge.
“They’re counting on the fact that a good number of diners will feel too awkward to ask for it to be removed,” claimed one.
“You have to look the person in the eye who won’t be getting the extra money,” pointed out another.
In Australia, restaurants are permitted to add an automatic service charge or tip to bills, but there are strict legal requirements regarding transparency and the option to opt out.
The charge must be clearly indicated as optional and displayed in the total price before the payment is made.
The Australian Competition and Consumer Commission (ACCC) states that businesses must be transparent about these optional charges and ensure customers are not misled.
Diners must also be able to request the removal of any automatic gratuity before paying the bill.
Do hospitality workers expect tips?
Much of the controversy around tipping is due to the fact that Aussie workers are already paid a fair wage.
Australia’s minimum wage is A$24.95 ($26.97) per hour, as of July 1 – among the highest in the world – while in the US, employees often rely on tips as they earn a base wage as little as US$7.25 ($12.11) per hour.
