The big bucks of small change: Counting the cost of new tipping trends

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The big bucks of small change: Counting the cost of new tipping trends
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Cash is dying, but Melburnians are being prompted to tip more than ever before. Will the push to pay tips electronically succeed?

As cash goes out of vogue - hastened by the COVID-19 pandemic - Melbourne’s tipping culture is changing.Experts say this is a subtle shift from the traditional culture in Australia, where tipping is not embedded in the economy. Rather, it has always usually been viewed as a voluntary payment to reward for exceptional service.Simon Blacher remembers the golden era of cash tips well from his time pulling pints at Melbourne bars.

Restaurateur and owner of Tokyo Tina in Windsor, Simon Blacher, says the heyday of the tip jar are over.But Blacher says in 2022, cash tips in Melbourne are few and far between and tip jars are relatively empty. “Any sort of app, or eftpos machine, or signage that encourages a consumer to pay over and above for the product or service is essentially attempting to create a culture where it becomes an expectation,” he says.“In Australia we’ve never really had a tipping culture. [Unlike the US] We haven’t had a minimum wage situation where people are really struggling to make a couple of bucks an hour, but where we’ve certainly seen tipping culture start to emerge is through apps.

But data obtained from numerous menu apps and payment platforms shows tipping is alive and well post-pandemic. Data from technology business Square, which provides financial services products for restaurants and other industries, showed the average tip size in Australia was about 10 per cent pre-pandemic and has fluctuated since, affected by wider economic trends.

Mr Yum, me&u and Square all allow restaurant operators to determine how tips paid through their platforms are distributed among staff, while Uber said 100 per cent of tips paid to it go directly into the accounts of drivers and delivery people.

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