Latest news with #tipping
Daily Mail
4 days ago
- Business
- Daily Mail
Fancy Sydney restaurant sparks outrage over detail that's easy to miss on the bill: 'Don't accept that crap'
A Sydney restaurant has come under fire after a customer discovered a tip had been added to the bill without their consent. The customer had visited Lana Dining, a fine dining Italian restaurant located in Sydney's Circular Quay. In a Reddit post on Friday, the customer shared a photo of their bill, revealing that a seven per cent gratuity had been added to the total. The original bill was $221 for the 12 items ordered, but it increased to $236.45 after a $15.47 service charge was included. 'This is the second occasion I have seen this at a fine dining Sydney restaurant,' the customer wrote. 'Is this slowly becoming a norm? Is the gratuity actually shared with the staff who goes above and beyond?' The customer noted that the seven per cent gratuity was mentioned on the menu, but only in 'very tiny print.' Social media users expressed outrage, calling the restaurant's optional gratuity a sneaky tactic to extract more money. 'Sneaking in a service charge and calling it gratuity is underhanded -especially when it's not clear if the staff even see that money,' one said. 'Tipping should be a choice, not something quietly forced on customers.' 'Places like this should be made famous for scummy tactics of forced gratuity,' a second said. 'I feel like it's questionable to include it on a bill to make it look like it's mandatory - very misleading,' a third said. Others slammed the restaurant for being out of touch with Australian values and claimed hospitality was following the tipping culture often seen in America. 'Don't accept that crap. This isn't America, and they sure as hell better not try to add the cost without telling you,' one said. The restaurant, owned by hospitality giant House Made Hospitality, fired back at the criticism, claiming the optional gratuity was communicated clearly to customers. 'The optional seven per cent 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,' a spokesperson said. 'It 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.' The restaurant added the surcharge was not mandatory and a customer is able to opt-out of the gratuity at any point, should they request to not pay it. It added that every dollar of the gratuity goes directly to the team working during the shift, including those in the kitchen. The restaurant's gratuities are managed through a third-party software program, which it said ensured transparency and was the fairest approach for tipping. However, social media users were not convinced with many claiming the restaurant put customers in an awkward position if they wanted to opt-out of the gratuity. 'That is sooo NOT cool. Puts customers in such an awkward position - I guess that's the point,' one person said. 'They're counting on the fact that a good number of diners will feel too awkward to ask for it to be removed,' a second person wrote. A third agreed: 'Exactly, you have to look the person in the eye who won't be getting the extra money. Please venues just pay your staff above award wages and incorporate that into your price'. It comes after another Sydneysider was left fuming when the restaurant he visited added a generous tip onto the bill without asking first. Mark and his wife were eating out at Tilda, a Sofitel Wentworth restaurant in Sydney's CBD, when they were presented with the bill. On his receipt towards the bottom was a 'gratuity' surcharge of seven per cent which meant he was lumped with an additional $18.50 on top of the $142.80 he spent on the meals. Tilda is also owned by hospitality giant House Made Hospitality. Unlike other countries, particularly the United States, tipping isn't expected or mandated in Australia. Restaurants in Australia are permitted to add an automatic service charge or tip to their bills but they must abide by strict legal requirements. If a restaurant chooses to add a gratuity or service charge it must be transparent about the fee and also provide customers with an option to opt-out of the extra cost. The Australian Competition and Consumer Commission explains businesses must be transparent about optional charges and ensure customers are not misled. Customers must be able to request the removal of any automatic gratuity before paying the bill.
News.com.au
5 days ago
- Business
- News.com.au
‘Turning into America': Sydney restaurant's menu act outrages
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 a Reddit 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 seven per cent service charge of $15.47 was added, bringing the total to $236.45. 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'. Commenters weighed in The thread quickly filled with angry comments from locals who felt the practice was out of touch with Australian values. 'Places like this should be made famous for scummy tactics of gratuity,' said one. Another wrote: 'This isn't America,' while others vowed to avoid restaurants with auto-tips. '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 'The optional seven per cent 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 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. Is this legal? 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 $24.95 per hour, as of July 1 – among the highest in the world – while in the U.S., employees often rely on tips as they earn a base wage as little as US$7.25 ($11.32) per hour.
News.com.au
19-06-2025
- Business
- News.com.au
‘Insanity': Wild restaurant fee shocks the internet
A disgruntled patron posted a receipt from a recent trip to a restaurant that charged its guests a mandatory 'living wage fee' on Instagram threads — and the internet was incensed. Tipping culture has long been a point of contention for Americans, and as prices continue to rise, the practice has become an even more controversial topic. But now it seems that businesses are taking things too far by tacking on extra fees such as this one — and people aren't happy about it. 'Price increase without having to update the menu,' claimed one reply on the post. '[This] means I'm never eating at that restaurant again,' said another. Meanwhile, another commenter proposed an entirely separate issue of debate: the pooling of tips. 'If I wanna tip a person, I wanna tip that individual, not the entire team. This is unfair to the server and to me.' However, a few lonely restaurantgoers cut the restaurant, which remained unnamed in the post — and the growing industry trend — some slack, and fired back at fellow commenters. 'Y'all have been asking for no tipping, this is what it looks like. It could reflect in drink/food prices, but then you all would say the place was too expensive. No one is trying to trick you — if they were transparent about the service fee, STFU,' one impassioned viewer responded. 'Just include [the fee] in the cost of the food and drinks, like the rest of the world is doing, and pay the workers properly. Sincerely, a guy from Europe,' one aggrieved commenter suggested under the post. This response was the sole sentiment that united incensed restaurant patrons on both sides of the debate. 'Mind your European business,' advised one reply, while another said: 'Hey, stay out of our insanity!' For some small, family-owned restaurants, implementing charges like this living wage fee might allow the business to stay afloat and support their employees — especially amid a cost-of-living crisis. Durham, North Carolina-based Lula & Sadie's is one spot that charges a living wage fee to combat 'rising overhead costs, slim industry profit margins and a minimum wage that won't budge,' per the family-operated restaurant's website. 'The fee is transparently listed on our menus, website and posted around the restaurant.' Though local laws vary greatly in terms of tipping and charging policies in restaurants, New York City Consumer and Worker Protection rules, state that 'restaurants cannot charge a surcharge or other fee in addition to listed food or beverage prices,' but they can 'charge a bona fide service charge, but only if the charge is conspicuously disclosed to consumers before food is ordered.' Examples of 'bona fide service charges' include splitting a meal on multiple plates, minimums per person and mandatory gratuity for large dining parties. That being said, 'living wage fees' are often considered service charges, depending on how they're disclosed and absorbed by the business. 'There is no law in New York State that specifically prohibits automatic gratuities. However, it is incumbent upon any restaurant including an automatic gratuity charge to provide — in advance — clear and conspicuous notice that an automatic gratuity charge will be levied and all terms associated with the automatic charge. If consumers are not provided advanced notice, [they] may have a claim under the NYS Deceptive Acts & Practices law,' New York State's Division of Consumer Protection told News10NBC.
Yahoo
17-06-2025
- Business
- Yahoo
Backlash over new trend as Aussies reject common money act: 'Not part of our culture'
Bars, restaurants, cafes and other hospitality venues have been warned as new research reveals Australia's view on tipping culture. It's different everywhere in the world — however, it's clear that many Aussies aren't in favour of adding extra money onto their bills to support staff. found 43 per cent of people outright refuse to tip at hospitality venues because they don't think it's 'part of Australian culture'. Finance expert Sean Callery told Yahoo Finance venues who actively encourage tips could end up pushing customers away for good. "It's just worth remembering that it is an optional thing, and if you feel like there's not a justification for adding a tip, you just have to stick to your guns," he said. RELATED 'Cheeky' cash surcharge prompts warning as more asked to pay Centrelink issues urgent deadline warning for lump sum payment FIFO worker on $250,000 reveals how Aussies can get into mining industry In days gone by, when cash was far more prevalent in society, you might have left the spare change as a tip or have slipped a fiver or tenner to your waiter. You could usually get away with this without the server standing over your shoulder. But cash is slowly fading in popularity and people are much more inclined to use their card or smart device to pay for everything. You're now more likely to be confronted with a card machine that asks whether you want to add a 5, 10, 15, 20 per cent or even higher tip before you some venues, you can even be asked to tip before you've even received your food or drinks when you order through a QR code. "When you've not yet had the opportunity to gauge whether the service, the quality of the food, and all the things you would typically associate with for whether you would tip or not, it's slightly presumptuous that you would do so, so early in your experience at a hospitality venue," Callery said. research found 18 per cent of people surveyed felt uncomfortable when presented with the option to tip and would sometimes cave to that pressure. Additionally, 29 per cent said they didn't mind tipping, depending on the occasion, 7 per cent enjoyed adding a tip to reward good service, and 4 per cent said tipping is important because staff deserve extra pay. Despite having some of the lowest monthly spending per capita, Millennials were the most likely to tip, with 15 per cent saying they always did it. However, Baby Boomers were the most against the practice, with 50 per cent outright refusing. Callery said this generational divide could be down to Millennials likely having experienced working in a hospitality setting far more recently than a Baby Boomer and remembering what it was like to get a tip. Tipping regularly comes up on Aussie social media sites and the overarching message is that tipping, at least from some peoples' perspectives, is an American tradition that has no place here. While wages in the US vary from state to state, waiters there can earn as little as $2.13 per hour. But Australia's minimum national wage is $24.10 per hour and is set to go up to $24.90 on July 1. One particularly furious diner launched a huge rant on Reddit recently after being encouraged to tip at an Aussie restaurant for their partner's birthday. They said no, and it sparked a back-and-forth about whether the waiter's service was good enough. "Australia has fair wages — tipping isn't part of our culture and it shouldn't become one," the person wrote. "If staff try to corner you into it, don't just say no — waste their time, turn it back on them, make them feel as awkward as they tried to make you. If enough people push back like this, they'll stop doing it." Many people backed the angry Aussie and said you shouldn't feel pressured to give away more of your money if you don't want to. "The minute you start feeling pressured or guilty for not tipping is the moment the system is working — I hold absolutely no shame hitting that 'None' button every time, and moving on with my day as if nothing was ever different," wrote one person. "I've fully opted out of tipping. I used to tip for great service, but once places started asking for tips before doing anything, I was done. Good service isn't a bonus, it should be the baseline. Price it in and stop the guilt trip," added another. Many people have expressed they wouldn't return to a venue that pushed for a tip. Callery told Yahoo Finance you don't want to leave a bad taste in patron's mouths, especially when it's usually the last thing they do before leaving. While he doesn't see a total wipeout of QR code or card machines tip prompts, he said it might have to be a bit more nuanced. "The genie's out of the bottle for how we pay at restaurants, but it just comes down to whether venues take the hint and provide a slightly more subtle way of generating tips for their stuff," he in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
15-06-2025
- Business
- Yahoo
Are you a big tipper? See how Delaware ranks nationwide in a recent tipping study
Delaware has collected yet another claim to fame: home to the country's best tippers. A new trends report released by the restaurant business technology platform Toast revealed Delaware to be the top tipping state in the nation, with diners leaving an average tip of 22.1% of their bill. The report collected information from 140,000 restaurants nationwide over the first three months of the year. Toast conducts the survey every three months. This was Delaware's second straight appearance as the nation's top tipper, after being the top tipper over the last three months of 2024. Their average tip grew by 0.2% over that period. Toast broke the data down even further, attempting to find the difference between tips at sit-down restaurants and "quick-service" fast food restaurants. Delaware, like almost all states, tipped significantly more at full-service restaurants than quick-service restaurants, 22.6% to 18.4%. Delaware was once again the best tipper when it came to full-service restaurants. However, the state placed third in quick-service tip rates. West Virginia and Wyoming led the way, with rates of 18.9% and 18.7%, respectively. Related article: Who has the cheapest fast food? The results of this study are surprising Pennsylvanians were above-average tippers, with an overall rate of 20.1%. Maryland residents came in as just about average tippers at 19.4%. New Jersey diners came in at 18.8%. Adam Denn is a general assignments reporter for Delaware Online/The News Journal. You can reach him for story ideas at ADenn@ This article originally appeared on Delaware News Journal: How much to tip at restaurants? Delaware customers are generous
