Dining out at a fancy restaurant is meant to be a treat—a chance to enjoy good company, delicious food, and maybe even a little bit of luxury.

But what if, after your meal, you’re left with a sour taste in your mouth—not from the food, but from a sneaky extra charge on your bill?

That’s exactly what happened to a Sydney diner recently, and it’s sparked a heated debate about tipping, transparency, and whether some restaurants are quietly importing American-style gratuity culture into Australia.

The Hidden Charge That’s Raising Eyebrows
The drama unfolded at Lana Dining, a chic Italian spot in Circular Quay. After a meal with friends, a customer noticed something odd on their bill: a 'gratuity' of 7% had been automatically added, bumping their total from $221 to $236.45. That’s an extra $15.47—enough for a cheeky dessert or a couple of coffees!

The customer took to social media to share their experience, posting a photo of the bill and asking, 'Is this slowly becoming a norm? Is the gratuity actually shared with the staff who goes above and beyond?'

They pointed out that while the charge was mentioned on the menu, it was buried in 'very tiny print.' So, it’s easy to miss unless you’re squinting.

A Sydney diner sparked outrage online after discovering a seven per cent gratuity automatically added to their bill at fine dining restaurant Lana Dining, with the charge reportedly noted only in very small print on the menu. Image source: @Sea-Investigator-614 / Reddit.

Social Media Outrage: ‘Don’t Accept That…!’
The post quickly went viral, with Aussies from all walks of life chiming in. Many were furious, calling the move 'underhanded' and 'misleading.' One commenter summed up the mood: 'Tipping should be a choice, not something quietly forced on customers.'

Others were quick to point out that Australia isn’t America. Here, hospitality workers are paid a much higher minimum wage—$25 an hour, compared to just $7.25 in the US.

'Don’t accept that c***. This isn’t America, and they sure as h*** better not try to add the cost without telling you,' one person wrote.

Restaurant Responds: ‘It’s Optional—And It Goes to Staff’
Lana Dining, which is owned by hospitality group House Made Hospitality, defended the charge.

A spokesperson said the optional gratuity 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.'

They insisted the charge is not mandatory and that customers can opt out at any time—just ask.

The restaurant also claimed that every dollar of the gratuity goes directly to the team working that shift, including kitchen staff, and that it’s managed through a third-party software for transparency.

But Is It Really That Simple?
Despite these assurances, many diners say the practice puts them in an awkward spot.

'You have to look the person in the eye who won’t be getting the extra money,' one commenter said. 'Please venues, just pay your staff above award wages and incorporate that into your price.'

Others argued that the real issue is the lack of clear, upfront communication.

If you’re not expecting a tip, and it’s only mentioned in fine print or at the very end of your meal, it can feel like a sneaky way to squeeze a few extra dollars out of customers—especially when you’re already paying top dollar for your meal.

Source: @focusonthetaskathand / Reddit.​

Not an Isolated Incident
Lana Dining isn’t the only venue under fire. Another Sydney restaurant, Tilda (also owned by House Made Hospitality), was called out for adding a similar 7% gratuity to diners’ bills. In both cases, the charge was technically optional, but not always obvious.

What Does the Law Say?
In Australia, restaurants are allowed to add a service charge or gratuity to your bill—but only if they’re upfront about it.

The Australian Competition and Consumer Commission (ACCC) says businesses must be transparent about optional charges and ensure customers are not misled. You must be able to request the removal of any automatic gratuity before paying.

Key Takeaways

• A Sydney diner sparked outrage online after discovering a seven per cent gratuity automatically added to their bill at fine dining restaurant Lana Dining, with the charge reportedly noted only in very small print on the menu.
• Social media users slammed the practice as sneaky and 'un-Australian', arguing that tipping should be voluntary and not quietly imposed, especially given that Australia does not have the same tipping culture as the United States.
• Lana Dining defended the surcharge, saying it was optional, clearly communicated to customers at multiple points, and that every dollar collected goes directly to staff working during the shift—however, many patrons felt uncomfortable about having to opt-out.
• Australian consumer law allows restaurants to include optional service charges as long as they are transparent and customers have the clear option to remove them, but diners expressed frustration at the awkward situation and perceived lack of clarity.

Have you ever been caught out by a hidden service charge or 'optional' gratuity? Do you think tipping culture is creeping into Australia, or is this just a storm in a teacup? We’d love to hear your thoughts and stories—share them in the comments below!

 

[meighLeigh]

I don't believe in tipping - the restaurant staff should be paid a decent wage to do a decent job. If you do tip, it should be for exceptional service only, not for someone who has just done what s/he was paid to do! So this compulsory 'gratuity' (a euphemism for tip) is, or should be, illegal. You can't just add 10% (or whatever you like) onto the bill without the bill payer's agreement!

 

[meighLeigh]

It's not 'sneaky' or 'un-Australian' - it's theft.

 

[Ronloby]

Here we go again. The Yankie system trying to take over the Aussie way of life. Should be made illegal in Australia.

 

[NoNoNoNoNoNo]

I have paid a gratuity in the past - but - it was only because I had exceptional service under difficult circumstances - some of my friends were being particular pains in the b$%s and the waitress was magnificent - she deserved it. Otherwise I will not pay a gratuity.

 

[June E]

Start this and every worker will want tips !

 

[Veggiepatch]

The last time I gave a tip was to a 10 year old Balinese boy in 1981.

For checking the tyre pressure on my rental motorbike....

 

[gordon1940]

The last time I gave a tip was to a 10 year old Balinese boy in 1981.

For checking the tyre pressure on my rental motorbike....

When you are about to pay simply ask " Would you like a tip?" If the answer is yes, say "be kind to your Mother"

 

[Veggiepatch]

When you are about to pay simply ask " Would you like a tip?" If the answer is yes, say "be kind to your Mother"

Maybe his mother was worthy of a tip.

But I'm not into Asian women....

 

[DLHM]

I can’t think of the last time I went to a “fancy” restaurant. They are just pretentious rip-off establishments anyway.

For those who do there and don’t want to pay a tip, just deduct the tip from the total so you only pay for the meal/s.

 

[Josephine767]

When I lived in Sydney, we'd dine out a few times on our way home in our favorite Restaurants, the service we received was exceptional, and my husband always tipped (the staff always made sure we were looked after). If the service or meals weren't up to standard he wouldn't tip, this occurred mainly in Restaurants we didn't frequent. "Great service and food would always entice us to return to the Restaurant, in addition, we'd refer friends, colleagues, and Clients to the Restaurants". Referral business is always a huge plus.

 

[Radiant]

It’s about time you stopped asking this question. Australians don’t tip and have clearly voted about this previously. We are not America

 

[Phantom55]

I experienced this in America (where it is the custom) and I left a 10% tip and got abused by the waiter...thats where this tipping thing gets out of hand (it appears to be compulsory in use) the same would happen here eventually . I think its outrageous that I must be compulsory forced to tip weather I want to or not, we are already paying a service charge why else would we be paying $40 dollars for a$8 steak and $12 for a scoop of ice cream and banana...a tip is over and above and optional and to expect, or worse, demand it is just plain arrogance and self entitlement

 

[7777]

This is theft occurring right infront of the customer. If there is no written notification on the walls of the restaurant, or on the menus, that a tip will be added to the bill, then that means these tips rules, are being carried out, without the customer being told. And why is the customer not told that a tip will be added to the bill, because there is a high chance that the customer will choose not to dine there, as well as make a comment that this is not America. People who work in hospitality already have a decent wage. The audacity for the restaurant owner to say, oh the tips all go to the waiters. Why doesn't the restaurant owner raise his staffs wages if he feels that they need the tips. This doesn't even happen in the most posh and super expensive restaurants. This restaurant owner probably went over seas, attended an American restaurant and came back with this idea of helping himself to tips, thinking that people won't check their receipts. Or, perhaps his America friends suggested that he bill customers with an additional tip, the way waiters and waitresses do in American.

 

[novezar]

This is theft occurring right infront of the customer. If there is no written notification on the walls of the restaurant, or on the menus, that a tip will be added to the bill, then that means these tips rules, are being carried out, without the customer being told. And why is the customer not told that a tip will be added to the bill, because there is a high chance that the customer will choose not to dine there, as well as make a comment that this is not America. People who work in hospitality already have a decent wage. The audacity for the restaurant owner to say, oh the tips all go to the waiters. Why doesn't the restaurant owner raise his staffs wages if he feels that they need the tips. This doesn't even happen in the most posh and super expensive restaurants. This restaurant owner probably went over seas, attended an American restaurant and came back with this idea of helping himself to tips, thinking that people won't check their receipts. Or, perhaps his America friends suggested that he bill customers with an additional tip, the way waiters and waitresses do in American.

Hi there, again, 7777,

I was going to mention similar, was there any mention prior to ordering that, a certain % gratuity would apply to the bill.

If there was no mention of such, I would've, if possible, just handed over the actual charge in cash of what you rec'd & walked out.

Not much they could do about it.