By Josh McNicol, Director of Growth at Zeller
Tipping culture in Australia has long been viewed as a less common practice compared to other countries, but with next-generation EFTPOS technology making gratuity prompts more visible, it is becoming a more natural part of the diner checkout experience. This shift benefits hospitality businesses, as higher tips are a strong motivator for staff to deliver better service, leading to happier customers and increased loyalty.
Zeller’s 2024 Australian Tipping Report revealed that, despite ongoing cost-of-living pressures, Australians are tipping more frequently and generously than ever before. The average tip left after a meal increased in value by 25 per cent year-on-year, and electronic payments played a key role in this trend. The convenience of EFTPOS-enabled tipping not only makes the process smoother for diners while allowing restaurateurs to discreetly introduce tipping prompts at checkout when appropriate.
The digital tipping age
While electronic payments have been around for years, advancements in EFTPOS technology are reshaping Australia’s tipping culture. Previously, gratuity was reliant upon diners having cash on hand—a habit that has faded with declining use. Now, smarter EFTPOS technology is making tipping more intuitive and frictionless, seamlessly integrating gratuity into the payment process.
Zeller’s data shows a 13 per cent year-on-year rise in the frequency of tips being left by diners with an electronic transaction, with the average tip value left increasing to $25.20, even at a point in time when consumers are tightening their wallets. Restaurants are seeing the biggest impact, with table-service venues receiving the highest average tip at $25.70. Metro diners are tipping more, with Melbourne now Australia’s most generous city, averaging $39.50 per tip, while Adelaide also saw an extraordinary 180% year-on-year surge in the average tip value, from $9.93 to $27.80.
For hospitality businesses, this shift presents a clear opportunity. Restaurants choosing to enable digital tipping prompts through their EFTPOS terminal drive an increased frequency in tips, as diners are more likely to leave gratuities when prompted discreetly during payment.
Shifting consumer behaviour: Tipping with purpose
Despite financial pressures, Australians are tipping more generously, signalling a shift toward valuing quality service and experiences. With it easier for customers to tip, operators have more incentive to deliver high-quality service that earns gratuities – boosting both their bottom line and the customer experience. This trend comes amid a modest 0.4% rise in household spending as of December 2024, according to the Australian Bureau of Statistics. Tipping is no longer just about spare change or convenience, it now reflects a growing appreciation for exceptional service.
Australians are increasingly willing to reward quality service, whether from an attentive waiter, a helpful barista, or a friendly maitre d. The ability to customise tip amounts directly on EFTPOS terminals enables customers to tip according to, for example, their level of satisfaction, the cost of their original bill, and whether they’re tipping at a fine dining restaurant or a casual brunch. Many are also more likely to leave a gratuity when prompted with suggested amounts that align with the service level they experienced.
The role of service quality in hospitality
While digital tipping has simplified the process, the quality of service remains as critical as ever. Venues that prioritise experience are better positioned to generate tips than those relying solely on technology. In the hospitality sector, customers are more likely to leave higher tips when they receive personalised and exceptional service. This highlights the need for a service-first culture, where every customer interaction is an opportunity to earn a gratuity. Hospitality businesses that train staff in customer engagement and create memorable experiences see the greatest benefits.
With solutions like Zeller Terminal enabling operators streamline key processes such as payments, staff can spend more time delivering exceptional service, ultimately enhancing the guest experience and increasing tip potential. Small gestures, like remembering a regular customer’s order, can make a big difference in the likelihood of receiving a tip. Customers appreciate being treated as individuals, and these thoughtful touches can go a long way in making them feel valued, which in turn can drive higher tip amounts.
Supporting staff retention and service excellence
Looking ahead, digital tipping presents an opportunity for businesses to also foster a more motivated and loyal workforce. As the Zeller Tipping Report highlights, Australians are tipping more generously each year, which translates into higher earnings for staff and improved job satisfaction. By embracing seamless digital tipping systems, hospitality businesses can offer their teams greater transparency and immediate feedback on their earnings, further encouraging quality service. The growing adoption of digital tipping in cafes, bars, and restaurants across the country is helping to support staff retention and attraction by aligning compensation with performance, benefiting both the workforce and the customer experience.