Have you ever gone to pay for a meal at a pub or restaurant, only to find a tip has already been added to your bill?
Melbourne man Mark Gladman estimates that when he eats out, 60 per cent of the places he visits now seek to charge him a tip. The default amount usually ranges from 10 to 15 per cent of his total order.
“It’s not something that should be a default or an expectation, it should be for fantastic service,” Mark told The Feed.
Mark is concerned tipping is becoming the norm in Australia, where it’s historically been voluntary.
A Reddit user posted this screenshot of a menu app with a 10 per cent tip automatically selected. Credit: Reddit / u/rsop
These apps can be set to automatically charge a tip, unless the customer removes the option before paying.
When ordering a meal via QR code, Mark is often prompted to tip before even speaking to a staff member.
“Which is kind of counterintuitive, because aren't you taking the tipping for service?” Mark said.
Although there is the choice to opt out, Mark said he feels judged when he chooses not to leave a tip.
“You kind of feel like a bit of a dick when you do put it to zero per cent. It's purely from a social expectation standpoint, but also it's quite off-putting,” Mark said.
Mark at one of his regular pubs, which does not have a pre-selected tipping system in place. Source: Supplied / Mark Gladman
Is it legal to automatically add a tip to a bill?
Under Australia’s consumer law, tips are considered “optional charges” or “pre-selected extras”.
Australia’s consumer watchdog said businesses are allowed to add pre-selected tips to your bill, as long as they’re clear and displayed in the total price.
A spokesperson from the Australian Competition and Consumer Commission (ACCC) said businesses are required to be upfront about when a charge is optional.
“Businesses that misleadingly add extra charges to purchases are at risk of breaching the consumer law,” the spokesperson warned.
So how do you avoid accidentally leaving a tip?
“Consumers should carefully look out for pre-selected extras included in the total price and make sure to deselect anything that’s not wanted before making payment,” the ACCC spokesperson said.
“If a consumer is misled into paying an optional charge, they should raise this with the business and request a pro-rata refund to the value of that added charge.”
Do food workers expect tips?
Much of the controversy around tipping assumes that workers are already paid fairly. At $21.38 per hour, Australia’s minimum wage is one of the highest in the world.
In the United States, employees who rely on tips can earn a base wage of as little as US$2.13 ($3) an hour.
But with the rising cost of living, many workers say while tips are not expected, they’re always appreciated.
Food delivery drivers in Sydney sometimes receive tips from customers. Source: Getty / Andrew Merry
Sagar said he very rarely receives tips – and if he does, it’s usually a dollar.
“I think customers should realise if someone is visiting them for a delivery during a rainy day or even during the nights, they should leave some tips in order to keep delivery drivers going,” he said.
“If I can get some more, maybe it can help me eat a meal in a day in a 12-hour shift, which I usually have it after finishing or at home due to budget constraints.”
Michael, who works as a delivery driver in Adelaide, said tips can make a big difference to drivers.
“For example, if you did 4 deliveries per hour and got a $2 tip on each one, that would add $8 per hour to your income,” he said.
However, he understands why most customers don’t tip.
“The customer is already paying delivery fees, service fees and a jacked-up price compared to the pickup menu. Adding tips makes it even more expensive for something the customer has already paid in full for.”
Who is pocketing the tips?
It's sometimes unclear who benefits from the tips provided by customers.
While working at a Perth café, Hannah Tapsell was not allowed to directly accept tips from customers – the money went into a communal tip jar.
But what happened to the funds was a mystery.
“In the year that I worked there, I never received anything at all. So I'm not really sure what was going on with whatever ended up in the tip jar,” Hannah said.
Hannah Tapsell never received the tips that customers left her. Source: Supplied / Hannah Tapsell
“I can understand if they were collecting it to maybe use for a staff event or a Christmas bonus, but there was ever anything like that, that indicated that it was being used for staff purposes.”
