Some Australian cafes adopt automatic tipping as costs keep rising

24 December 2025

In a land were people (still) do not generally expect to pay a tip at food and beverage venues, a practice called automatic tipping is sure to be poorly received. Industry workers are reasonably well paid in Australia (or are meant to be), so customers see little need to offer tips.

This is not the case for all dining workers across the world though.

But some local food and beverage venues, struggling with escalating costs, have begun adding a gratuity of up to ten-percent to what they charge customers, a practice called automatic tipping.

Although it may not be popular, some industry observers predict the practice will become more common, in response to rising overheads. While automatic tipping is legal in Australia, food and beverage operators must be upfront about the charge, and allow customers to opt out of paying.

At a cafe I go to regularly, a large cappuccino costs five-dollars-and-fifty-cents (Australian). An automatic tip of ten-percent would see the cost rise to six-dollars-and-five-cents. I appreciate local food and beverage operators are struggling, but I’d rather meet them half-way.

Perhaps increase the price of a coffee by five-percent, maybe a tad more, taking the price to five-dollars-and-eighty-cents. Round off the price to nearest twenty-cents so people paying cash (to avoid card surcharges) don’t end up with a pocket too full of loose change.

I think most customers, certainly regulars, would continue to support their favourite coffee shop.

A reasonable price increase, and not just for coffee of course, seems far less underhand than levying an automatic tip, would avoid potential confrontations, and bring the much needed revenue boost food and beverage venues are looking for.

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