'Do I need a reason?': One restaurant's policy draws flak among Aussie food enthusiasts

Navigating the ever-evolving landscape of the Australian hospitality industry can be as thrilling as it is challenging, especially when new practices emerge that shake up the status quo. One such practice that's causing a stir in Sydney is the 'opt-out' tipping policy, a concept that's relatively new to Australian diners but quite familiar to our American friends.


The heart of the controversy lies at Island Radio, a fresh face in the Sydney dining scene, nestled within a swanky $50 million precinct in Redfern. This establishment has boldly introduced a three per cent tip automatically added to all bills, a move that has sparked a heated debate among its clientele.


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Island Radio, a Southeast Asian concept restaurant, received criticism online due to their 'gratuity' fee. Image Credits: Instagram/Island Radio, Reddit/naive-reporter-5664


The concept of tipping in Australia has traditionally been a voluntary gesture, a way to express gratitude for exceptional service. However, Island Radio's policy flips the script, assuming the tip as a given unless the diner chooses to opt-out. This has raised eyebrows and prompted a local to voice their concern, questioning the necessity of such a policy and the implications it has on staff wages and the dining experience.


Island Radio, however, stands firm on its stance. They've communicated that the gratuity is discretionary and have been transparent about the policy at various stages – from the booking process on their website, in confirmation emails, to verbal reminders when presenting the bill. The spokesperson for Island Radio elaborates that this policy is not just about extra earnings but is a strategic move to incentivise their staff, ensuring they are rewarded for their hard work and dedication, especially during a time when the industry is facing a shortage of experienced staff and the cost of living is on the rise.

The 'opt-out' tipping policy is not unique to Island Radio. Joji, a Japanese-inspired rooftop bar perched atop Cartier's flagship store in Sydney, has also adopted a similar approach, with an opt-out service fee that varies between five to ten per cent depending on the size of the dining party.

While some may view this as a controversial shift towards an Americanised tipping culture, Island Radio assures that diners can have the surcharge removed 'no questions asked'. They also highlight that the tips are managed through a third-party program, ensuring that every dollar goes directly to the team working that shift, including the kitchen staff.


The hospitality group behind Island Radio, House Made Hospitality, is no stranger to innovation and expansion, with other successful ventures like Tilda and Promenade on Bondi Beach under its belt. Their adoption of the 'opt-out' tipping policy could signal a broader trend within the industry, as businesses seek new ways to support their staff and elevate service standards.

As seniors who have seen the hospitality industry evolve over the years, this new tipping policy might take some getting used to. It's essential to understand that while the practice is optional, it's also a reflection of the changing dynamics within the industry. Whether you choose to embrace the change or opt-out, the power ultimately lies in your hands as the consumer.
Key Takeaways

  • Island Radio, a new restaurant in Sydney's Redfern, has adopted a controversial 'opt-out' tip policy, adding a three per cent gratuity to all bills.
  • The gratuity is discretionary, and diners can request its removal, but the restaurant has faced backlash for the practice.
  • A spokesperson for Island Radio defended the surcharge, stating it rewards staff for their hard work and incentivises good service, and is clearly communicated to guests at multiple stages.
  • This tipping practice isn't isolated to Island Radio, as other new venues in Sydney have also implemented opt-out service fees to support their staff amidst rising living costs.
We at the Seniors Discount Club are curious to hear your thoughts on this new tipping policy. Have you encountered it during your dining experiences? Do you feel it enhances the service, or does it place an unnecessary burden on the diner? Share your insights and experiences in the comments below, and let's navigate these market shocks together, staying informed and ahead of the game!
 

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Dominos pizza (when you online order) now gives you the option to give the delivery driver a tip. But it is optional. Why do we have to follow America on everything. Yes I agree on tips over there because their service peoples wages are abysmal compared to ours but stop following the US in everything. Beyond ridiculous.
 
In America, waiters and waitresses are paid anywhere from $3 - $20 an hour. And out of that they are expected to pay the "bussboy" who is the person who clears away the dirty dishes. In Australia, wait staff are paid at least $25 an hour, so tipping is not a necessity. As for adding 3% - 10 % to bills, that is just another way for the owners to avoid paying staff decent wages.
 
In America, waiters and waitresses are paid anywhere from $3 - $20 an hour. And out of that they are expected to pay the "bussboy" who is the person who clears away the dirty dishes. In Australia, wait staff are paid at least $25 an hour, so tipping is not a necessity. As for adding 3% - 10 % to bills, that is just another way for the owners to avoid paying staff decent wages.
What grubs! Yes they have an "opt out" option but who wants to look like a cheapskate by doing this?? Seriously these people need to take a good hard look at themselves and pay the staff the regulation pay scale. If they do a good job, we will tip them - if not, no they do not get a tip! End of....
 
Dominos pizza (when you online order) now gives you the option to give the delivery driver a tip. But it is optional. Why do we have to follow America on everything. Yes I agree on tips over there because their service peoples wages are abysmal compared to ours but stop following the US in everything. Beyond ridiculous.
No one's forcing you. Some people like helping more than others!
 
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I thought that it was illegal to request a tip in Australia as all staff are required to be paid, as a minimum, award wages and if they are not then the COMPANY IS BREAKING THE LAW!!!!
 
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No one should be obligated to tip, but saying that those who do tip are sending a negative message to those who don't and that tipping should be banned is ridiculous.
We give Christmas presents to the people we want, for whatever reason. No one is forced, but others feel obligated!
Right, then let's ban Christmas presents... RIDICULOUS!!!
 
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How do you know if you will receive good service when you book? If a “tip” is expected it is no longer called a tip but a service charge. No thank you - I too work hard for my money and my boss does not “tip” me. Ridiculous.
 

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