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.


Screenshot 2024-09-20 at 10.44.09 AM.png
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!
 
Sponsored
I like to tip individuals personally from time to time, when finances permit, but not establishments.

This is an admission that their staff are underpaid, yet they expect maximum service for customers.

Talk about screwing the staff. This costs the establishment nothing and as always, the customer pays through the nose, on their behalf.

It's a bit late and inconvenient to change your dinner plans when you find out last minute about these surcharges.
 
  • Like
Reactions: Iggydi and DLHM
With us becoming a no cash society it means that good service is seldom rewarded as fewer people now carry cash
I prefer to give to the actual staff member who has gone above and beyond to ensure my experience at their business is exceptional. I am uncomfortable with restaurants taking it ad hoc to distribute it amongsth all the service staff - good and average, plus the worry that some businesses may not distribute it at all, and just add it to their profits. Third party companies that handle such monies also have to get paid, so where does that money come from?
 
  • Like
Reactions: Iggydi
what every one is missing is the statement the 3per cent tip is run by a 3rd party company so the staff wont be getting all of the tip anyway someone sitting in a office/home operated company takes their fees out
so maybe staff get 1 per cent
 
If the 3% is optional then why don’t they ask if you want to tip not make it seem like you’re a cheapskate if you don’t want to tip
 
  • Like
Reactions: Iggydi
Dominos also charge extra on Sundays and public holidays. Pizza's from Dominos are so bloody scabby and overpriced without having to pay extra on Sundays and holidays.
 
  • Like
Reactions: Iggydi and Gaena
Dominos also charge extra on Sundays and public holidays. Pizza's from Dominos are so bloody scabby and overpriced without having to pay extra on Sundays and holidays.
Remember how often people complain that burgers from Maccas do not look anything like the advertising, Dominoes are the same, when we moved here the first Pizza we bought was from Dominoes as they were the only Pizza place in town prior to then, Worst Pizza I have ever Had, nothing at all like the advertising, since then we have a few other Pizza shops to chose from, even Pizza Hut now so we can enjoy a decent pizza but honestly have not been near Dominoes since that first one, we have learned to ignore advertising and just take word of mouth from friends, which seems to work quite well. Always ignore advertising when it comes to food, it is rarely correct and just leads to a waste of money and a scramble to find something else for dinner!
 
  • Like
Reactions: Iggydi
Remember how often people complain that burgers from Maccas do not look anything like the advertising, Dominoes are the same, when we moved here the first Pizza we bought was from Dominoes as they were the only Pizza place in town prior to then, Worst Pizza I have ever Had, nothing at all like the advertising, since then we have a few other Pizza shops to chose from, even Pizza Hut now so we can enjoy a decent pizza but honestly have not been near Dominoes since that first one, we have learned to ignore advertising and just take word of mouth from friends, which seems to work quite well. Always ignore advertising when it comes to food, it is rarely correct and just leads to a waste of money and a scramble to find something else for dinner!
The burger adverising industry trick is to only cook the outside of the patty enough to brown it. All the juice is retained to give it a plumpier look when, in actual fact, it is red raw!
 
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.
How come that at most restaurants, staff are not given a wage…..surely that’s illegal…..are there really some people who are so very desperate, that money earned is provided solely from tips and not any from the employer…..
 
  • Like
Reactions: Iggydi
How come that at most restaurants, staff are not given a wage…..surely that’s illegal…..are there really some people who are so very desperate, that money earned is provided solely from tips and not any from the employer…..
The American wage system is very much different to ours, they do not have fair work commision standards or anything like that. however there is a legistated minimum wage that applies to all employment and most Hospitality companies use that to pay their staff but it is barely above poverty level hence the reliance on tips to make a living
 
  • Like
Reactions: Iggydi
As a patron I decide if the service I was given deserves a tip. An imposed 'gratuity' is NOT a patron's expression of satisfaction. I would not pay. And I would not book at that restaurant, or any that use this system to attract more money.

Regarding restaurant tipping in the US - the longer parons keep paying, the longer these establishments get away with paying sub-standard wages. It's a shocking indictment on the US wage system.
Better to delete it from your bill - who actually gets the 'gratuity' if you pay it in this way? - and tip your waiter in cash personally if you can, in the hope that she/he can keep it. In three holidays to the US this is what I have done, and the wait-staff members in every instance have been most appreciative for the personal recognition of their servive.
 
  • Like
Reactions: Iggydi
it may be a piddling amount ,but amounts change, once accepted it becomes the norm and after the norm comes the expected 'tip' Sunday surcharge is a sort they dont pay their staff more. If they want more money ..raise the prices. I used to be a frequent restaurant user but now the prices are for tourists. same as o'seas except Aust is already the dearest place on earth along with the highest paid people on earth.
 
  • Like
Reactions: Iggydi
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.
never in Aust....please
 
  • Like
Reactions: Iggydi
It is disgusting that tipping has crept into the Australian restaurant scene, they get paid very well and tips are not necessary, we are not American where they get paid a very small retainer and they hope to get tips to build up there wages, if they deserve it.
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.

Seniors Discount Club

The SDC searches for the best deals, discounts, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  1. New members
  2. Jokes & fun
  3. Photography
  4. Nostalgia / Yesterday's Australia
  5. Food and Lifestyle
  6. Money Saving Hacks
  7. Offtopic / Everything else

Latest Articles

  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×