If you’ve visited a hospitality venue in the US, you’ll know that tipping is a common practice. It’s not just for a premium dinner; you’ll see people tipping for something as quick and casual as a takeaway coffee. In Australia, by comparison, tipping is a far less prevalent practice. But is that changing? And is it within a venue’s control to generate more tips?
How is tipping changing in Australia?
In the US, the federal minimum wage is ~A$11.95 (US$7.25 per hour), considerably lower than in Australia, where it starts at A$24.95 per hour for permanent cafés or restaurant employees who are 20+ years old. That means service staff in the US can be more reliant on tips to boost their pay, compared with their counterparts in Australia. But how often, and in what instances, are Aussies tipping?
According to Lightspeed’s Hospitality Insights and Dining Dynamics 2025 report, tipping remains a selective rather than expected practice. However, Aussies also suggested they’d be more likely to tip if it was clear where the tip went, with nearly half (47%) saying they’d be more inclined to do so if they knew 100% went to staff. Almost half (46%) would be likely to tip for a larger bill at a restaurant or fine dining venue, while 35% are likely to tip for a smaller bill at a casual or familiar spot they visit regularly, like a café or local pub.
“Aussies suggested they’d be more likely to tip if it was clear where the tip went.”
According to Lightspeed data, the percentage of payments in Australia that include a tip is growing. In 2024, 0.73% of all transactions were made with an accompanying tip; higher than 0.60% in 2023, 0.53% in 2022 and 0.44% in 2019. This is based on millions of digital transactions across Australia, whether it’s for a schooner before the rush-hour train home or a lavish meal at a hatted restaurant.
Can your venue incentivise tipping more?
For venues and their staff, the motivation should be less about generating tips and more about providing a meaningful and memorable guest experience. The byproduct of that is often higher rates of tipping, as well as increased retention and revenue. There is no one-size-fits-all approach to great guest experiences, but instead a combination of factors in unison.
For example, venues are embracing trends like sustainable sourcing, limited-edition menus and social media-inspired dishes while balancing customer demands for dietary options and unique experiences. That’s because these are common expectations amongst contemporary diners. When venues understand the specific needs, habits and preferences of their diners, it’s far easier to tailor their approach to the needs of the particular customer or customer segment.
What’s more, when venues can streamline and optimise processes behind the scenes using technology, it frees up more time for them to provide the human interactions that are synonymous with a visit to our favourite restaurant, bar or cafe. In fact, 41% of operators highlight technology’s impact on enabling staff to focus on delivering exceptional customer experiences. When staff can devote more time to their patrons, it’s easier to provide the warm, attentive, and personal experiences that guests want.
It’s a critical period in the industry. Australians are contending with cost-of-living pressures, but whether it’s through their tipping habits or the frequency with which they’re visiting venues, they’re eager to support their local venues. If venues can successfully identify how consumer needs are evolving and how to cater to those needs, they’ll be better placed to improve loyalty and retention, and help their team with a few extra tips.
