Zeller Tipping Trends Report 2023 shows Australians are tipping more generously amidst economic challenges
Australians are proving their commitment to supporting local businesses as they tip more generously, despite economic pressures and the rising cost of living.
Zeller, which supports over 35,000 Australian businesses with next-generation EFTPOS technology, analysed tipping trends from millions of transactions processed with Zeller Terminals across the country. The findings are compiled in Zeller’s latest Tipping Trends Report which reveals significant increases in both the average tip value, and how frequently Australians are tipping, reflecting a community dedicated to acknowledging outstanding service and supporting local businesses.
The data shows that the average Australian tip has grown 12% year-on-year (YoY), from $16.05 to $17.93. Notably, Australians are also tipping more frequently, with the volume of tips as a percentage of total transactions processed by Zeller increasing an impressive 132% since January 2022.
In the Sydney vs. Melbourne rivalry, it’s the hospitality staff in Melbourne who came out on top. Melbournians are leading the way in tipping, with the average tip value on a meal in Melbourne surpassing Sydney by a remarkable 57%, totalling $18.57 compared to $11.81.
“We’ve observed a significant increase in the tips we’ve received at Trattoria Emilia recently. This can be attributed to the streamlined customer experience offered by Zeller Terminal, as well as the growing trend among Australians to tip more frequently. We are grateful to our customers for recognising and rewarding our exceptional service by tipping our dedicated staff,” explained Matteo Neviani, General Manager of Trattoria Emilia in the Melbourne CBD.
While the generosity of tippers is more pronounced in metro areas, a trend is emerging in regional Australia. On average, diners in major cities tip 12% more than those in regional areas, with metro diners averaging $18.08 compared to $16.07 for regional diners. However, diners in regional Australia have increased their average tip value by an astounding 79% YoY, growing from $9 to $16.07, demonstrating a growing appreciation for the businesses and staff servicing regional areas.
“Recently at La Tabella, we have observed a significant upswing in tipping. This can be accredited not only to the influx of tourists but also to the seamless and user-friendly nature of our Zeller EFTPOS Terminals. The Zeller Terminal employs a subtle approach in guiding customers through the tipping process, enhancing the overall experience for both our valued patrons and dedicated staff members,” said Brittany Yanapa, Venue Manager at La Tabella, an Italian restaurant in Airlie Beach, Queensland.
The Australian tipping culture is also diversifying. While table-service diners continue to be the most generous, with an average tip of $19.98, marking an 8% YoY increase, servers at takeaway venues are now also being rewarded for great service, with average tips totalling $7.52, reflecting a 6% YoY growth. However, bar, club, and cafe patrons appear to be tipping less generously, with average tip values declining by 23% and 19% YoY, respectively, in these hospitality settings.
“While tipping isn’t for everyone, we’re impressed to see a growing trend of Australians adding a gratuity to their bill to reward an outstanding customer experience. Zeller Terminal’s built-in tipping feature, which can be turned on or off on the EFTPOS device, is a small but important feature that nurtures a culture of generosity, and incentivises servers and staff to elevate their customer service experience,” said Joshua McNicol, Director of Growth at Zeller.
Australians are demonstrating their generosity in a variety of other customer service settings. Beauty and hair appointments lead the pack, with an average tip of 21% of the total bill, surpassing all other categories and experiencing a remarkable YoY increase of 121%. The average tip percentage in the hospitality sector also grew by 11% YoY, while it remained stable in the taxi and transportation industry.
These findings underscore the importance of business owners being armed with technology to assist them in taking advantage of this growing trend, visit the Zeller Business Blog to learn more.
