Newcastle is home to a number of great restaurants and cafes, but there is one growing trend dividing local diners.
Unlike in the United States, where tipping is an expected part of dining out due to low minimum wage, tipping is not built into the Aussie service model.
Yet, it’s still often encouraged at most dine-in venues in Newcastle and the Hunter region.
With fewer people carrying cash in 2025, many cafes and restaurants now offer “percentage based” tipping options from the EFTPOS machine when it’s time to pay the bill.
And, unlike leaving an optional amount of cash on the table after the bill is paid, many consumers are finding this new tipping trend uncomfortable.
‘It’s intrusive’
Professor Steve Worthington from Swinburne University, who has over 30 years of experience in payment systems, says there is “a degree of surveillance” to this method that is gradually becoming more commonplace.
“They [wait staff] are looking at what you’re doing and it feels intrusive,” he explained.
Newcastle local Emma agreed with Professor Worthington’s assessment of the practice.
“I hate when the server passes you the EFTPOS machine and it’s got the ‘tip’ screen open,” she told the Newcastle Weekly.
“The ‘no tip’ option is never very obvious.”
Another local diner felt similarly when presented with the on-screen tipping option.
“I hate the pressure of tipping on the screen… it’s not great for the overall experience.”
A third felt that as our costs rise, tipping is a luxury that is just not possible for some.
“The price of the food in restaurants is already completely inflated,” she told the Newcastle Weekly.
“Hospitality workers in Australia seem to get a fair wage, too.”
The US experience
After a recent trip to the US, Mel from Newcastle said she felt screen-based tipping has even become problematic over there.
“I noticed that US locals were pushing back against the screen-based tipping in places like Starbucks,” she explained.
“I am always happy to tip after a great meal and excellent service, but it becomes very awkward when simply buying a take-away coffee.”
According to the CEO of the Restaurant and Catering Industry Association, Suresh Manickam, customers should however never feel pressured to tip.
“It is very different in Australia to how it is in the US,” he told the Newcastle Weekly.
“You should never feel forced to tip a venue, it is voluntary and relates to how much you valued the meal and the overall experience.”
Best practice tipping
Mr Manickam said that while many venues do use on screen tipping options, good manners dictate that staff should be discrete when dealing with customers.
“Typically what happens when you pay a bill is a staff member should look away or turn their back while you complete the transaction,” he added.
“That would be best practice.”
While this might be ideal, some local diners still find the tipping process uncomfortable.,
“I always tip if asked on an app or at restaurants when it comes up as an option when you pay,” Chrystal told the Newcastle Weekly.
“I definitely feel the pressure to tip well when they are standing there watching, but I am happy to do so for great service.”
One happy customer who wanted to tip via a credit card payment said he had to ask the local venue how to add a tip to the bill payment, highlighting the fact some hospitality staff might be missing out.
Mr Manickam said that he is often asked about how staff receive EFTPOS tips, now venues rarely have cash ‘tip jars’.
“It is very much up to the restaurant how they manage the tips between staff,” he said.
“Some would be given to the individual at the end of the week or split between the kitchen and floor staff.”
Do you tip? Do you find the EFTPOS tipping awkward or acceptable?
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