Customers are fuming over this tiny detail on restaurant menu: ‘Don’t dine at this place’

The concept of tipping has always been met with confusion and resistance. Unlike our friends across the Pacific, Australians have never fully embraced the culture of tipping, largely because they believe that fair wages should be provided by employers, not supplemented by customers.

However, a recent incident involving a Sydney restaurant has reignited the debate over tipping in Australia, sparking a fiery discussion online.



The controversy began when a photo surfaced on social media showing a menu from the Italian restaurant Grana, which stated that a '3 per cent gratuity added to all bills' would be applied.

This small detail did not sit well with many Aussies, who expressed outrage over what they perceived as an enforced tipping policy.


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This detail on a Sydney restaurant menu has outraged customers online. Credit: u/ndro777 / Reddit


'If 3 per cent applies to all orders, just raise prices by 3 per cent. Considering how much this s*** pisses Aussies off, I’m surprised they would do this over such a small amount,’ one said.

‘I don’t know why restaurants do this when all it does is irritate customers. Like they could just bump their food and beverage prices up a few per cent and not talk about it, and everything would be fine,’ another commented.

In the face of this backlash, House Made Hospitality, which owns Grana and several other restaurants, defended its decision.

‘The optional three per cent surcharge at Grana, communicated at multiple stages during the booking process and again verbally when the bill is presented, is designed to reward our team for their dedication and hard work,’ a spokeswoman said.

‘It also serves to incentivise exceptional service and support increased tenure within our industry.’



They also clarified that the gratuity could be removed upon request with 'no questions asked’.

‘Gratuities are managed through a third-party program, which we believe is the fairest approach, ensuring every dollar goes directly to the team working during that shift,’ she said.

‘Our goal is to deliver a memorable dining experience for our guests while rewarding our team for their efforts. However, we fully respect that not all guests may wish to pay the surcharge, which is why it remains entirely optional.’

However, the menu noted a 10 per cent surcharge on Sundays, a 15 per cent surcharge on public holidays, and a 10 per cent service fee for groups of eight or more, replacing the standard three per cent gratuity.



Despite these assurances, many critics remained unconvinced, with some vowing never to dine at establishments that impose such charges.

‘Don’t ever dine at a place that does this. We seriously need to reject this culture. If you want to tip your waiter/waitress, then you should. Forced gratuity is a joke, you’re already assuming that you’ve provided me such good service that a tip is deserved? I’ll be the judge of that, thank you very much,’ one person wrote.

‘Staff are paid minimum wage. So this is just gouging. I’d be walking out,’ another said.

‘At that point, I’d refuse to pay. I’m either paying for the price on the menu or not at all,’ a third added.



The Australian Competition and Consumer Commission (ACCC) has stated that businesses must comply with the provisions of the Australian Consumer Law to avoid misleading consumers and potentially breaching the law.

‘Under the Australian Consumer Law, restaurants and cafes must display clear and accurate prices and must not mislead consumers about their prices,’ an ACCC spokeswoman said.

‘Businesses must be clear and upfront about any additional costs such as surcharges that might apply, as well as when a charge is optional.’

‘Consumers that have concerns about the addition of charges can report the matter to their local fair trading or consumer affairs agency.’
Key Takeaways
  • A Sydney restaurant has sparked controversy by adding a 3 per cent gratuity to all bills, which has angered many Australians who are not accustomed to mandatory tipping.
  • House Made Hospitality, the owner of the restaurant Grana, stated that the gratuity is optional and can be removed 'no questions asked' if diners request so.
  • The addition of the gratuity is designed to reward staff and incentivise exceptional service, with the proceeds managed through a third-party program to ensure fairness.
  • Despite the optional nature of the gratuity, the way it has been presented on the menu has led many to believe it is mandatory, resulting in backlash from patrons who prefer to decide for themselves whether to tip based on service quality.
Have you encountered similar surcharges at restaurants? Do you believe tipping should become a standard practice in Australia, or should fair wages negate the need for such gratuities? Share your thoughts in the comments below!
 

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When very much younger I worked in the hospitality industry for quite a few years, mostly hotels and a couple of restuarants, while tipping is not the norm in Australia, I was always happy to receive tips from happy customers, it validated my hard work and dedication to give the best customer service that I could , the amounts certainly stacked up each week and gave me some very much welcome pocket money. I do not agree that customers should pay a surcharge as not every employee works as hard to provide the customer service that deserves a tip, We do not need the American system here, that is used to bump the employees wage up to a living wage far different to here in Australia where an above minimum wage is usually paid.
 
We worked in hospitality and we received tips when we went above and beyond our normal duties. (It was embarrassing) We also tip the people that go above and beyond and it doesn't have to be just in a restaurant. Some people make your experience memorable and they should be recognised. When we went to America some of the people there did nothing and the first thing out of their mouths were "don't forget to leave a tip." They didn't get much if anything from us but the young man in a restaurant we went with our family got a huge tip as he made us feel special and did a few things that he really didn't need to. In Australia we should not be bringing in the Tip system as we will also get the people that do nothing but expect to get a tip. It makes for lazy workers
 
I don’t think we should be made to tip as they are paid an award wage. This tipping had put me off visiting the USA again as you are made to tip eating and having your hair done. Let’s not follow their ways.
 
I don’t think we should be made to tip as they are paid an award wage. This tipping had put me off visiting the USA again as you are made to tip eating and having your hair done. Let’s not follow their ways.
Don't forget about the VAT (Value Added Tax) You see a price and get that amount of money out then they put on the VAT and then you have to tip the person selling the stuff. It makes it very expensive
 
I tip when I think it is deserved. In Australia staff are paid good wages so they should not expectation. We go to one restaurant quite often so we tip the two girls there as they are always very pleasant. It should be OUR not the restaurant to just add on tips.
 
We are NOT America.

A tip is left as a thank you for the waiter or whomever made our dining experience special. I can't remember the last time I left a tip as even basic customer service seems to be going the way of the Dodo just lately. I don't see why I should reward someone for doing the minimum of their terms of employment. :confused:
 
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We just got back from our first trip to America. We found the tipping there very confronting & embarrassing. It was automatically added to your bill & you had to hit yes or no or how much when paying by eftpos. We started off hitting thr yes button but as time went on we realised that a lot of over the counter purchases didn't earn their tip so stopped adding a tip. Plus it really adds up with the conversion of the US dollar. We started tipping waiters ourselves if we feel they deserved it. I hope they don't bring it in here. It's up to each individual not the cafe/restaurant/store.
 
I almost always tip, a habit I picked up from my country of birth.
For a few months, I also waitressed in America. At most restaurants staff are not given a wage and if they are, it's ridiculously low.
Raising prices in place of tipping, seems a good idea, but you can bet your butt, little or nothing will go to staff.
 
Legally, restaurants can charge mandatory gratuities, but they must ensure such charges are transparently communicated to consumers before the purchase. Failure to do so may result in legal action for misleading price practices. [source: ACCC Price Displays https://www.accc.gov.au/business/pricing/price-displays]
  • If a restaurant discloses a mandatory gratuity in advance, this practice is legal, provided the gratuity is part of the total price displayed. For instance, if a restaurant imposes a 10% gratuity on all bills, they must include this in the total price listed on menus or clearly state it alongside the prices of items.
  • If the gratuity is disclosed clearly but not included in the base price, it must still be made as prominent as the price of the item itself, ensuring customers are fully aware of what they will pay.

Legal Practices:​

  1. Total Price Display: Businesses must clearly display the total price of goods or services, including all mandatory charges such as taxes, duties, and pre-selected fees, prior to purchase. This ensures consumers know the full cost upfront.
  2. Surcharges and Mandatory Fees: Restaurants and cafes can charge additional surcharges, including mandatory gratuities, but these charges must be disclosed upfront. If a mandatory surcharge applies every day, such as a fixed service charge or gratuity, it must be included in the displayed price as part of the total cost.
  3. Transparency of Extra Fees: Restaurants are allowed to charge extra for things like public holiday surcharges or specific services (e.g., a mandatory gratuity), but these charges must be disclosed in a clear and prominent manner. For example, if a 10% surcharge applies on public holidays, the restaurant must prominently display that information on menus or in-store signage.

Illegal Practices:​

  1. Undisclosed Mandatory Gratuities: It is illegal for businesses to charge mandatory gratuities or any other additional fees that are not disclosed to the customer before the purchase. If these charges are not visible upfront or properly communicated, it is considered misleading.
  2. False Price Representation: Advertising a lower price and then adding a mandatory gratuity during checkout without prior disclosure is considered misleading and can lead to legal consequences under Australian consumer law. All unavoidable costs must be made clear at the beginning of the transaction.
 
I almost always tip, a habit I picked up from my country of birth.
For a few months, I also waitressed in America. At most restaurants staff are not given a wage and if they are, it's ridiculously low.
Raising prices in place of tipping, seems a good idea, but you can bet your butt, little or nothing will go to staff.
I left Canada when I was 20 and was so pleased there was no tipping in Australia.

When on holidays in North America, I hated the whole tipping thing. I can understand why though. The hospitality industry pays very poorly compared with here and the employees rely on their tips.
 
Another "establishment" that should be put out of business.

How about a party of 20 people have a night out then simply walk out without paying? I've seen it done once and it was hilarious, watching staff running around like headless chickens to no avail!

Back to Grana. One review stated that the request for a nut free meal was not bothered with and the diner had a severe anaphylactic reaction. The restaurant's reply? "The staff were tired on the night". PFFT!!

Burn the joint to the ground!
 
I hate tipping. I only tip for exceptional service. I am unsure how much goes to the waiter though.
Why oh why do we need to follow USA on things. We are Australians and should be proud of it.
 
It depends on the level of service i receive as to whether of give a tip to the individual who served me. Unfortunately there are very few in todays hospitality industry that have had very much training in the industry. Unfortunately there are to many hash slingers nowadays!!.
 
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