22 Feb 2024

Hospitality workers respond to Eftpos machine tipping

From Checkpoint, 5:42 pm on 22 February 2024

Kiwis are debating the need for tips at New Zealand restaurants.

New Eftpos machines prompt customers to tip an extra 5, 10 or 15 percent.

Some diners said they felt pressured to spend more money, but others said it was good for hard-working staff.

Aucklander Liam Crawford said the prompt was awkward.

"I think it's definitely trying to play on people's morals, and just almost make you feel bad for saying no so you say yes," he said. "Otherwise you feel like a dick."

In the United States tips were included in the minimum wage for restaurant staff, but that was not the case in Aotearoa - so Tim Mace wondered why Kiwi staff would need tips in the first place.

"Then why is the price of the food so expensive? I thought the price of the service was meant to be included in the price of the food. Are they double-dipping, or is this just a sign of the times?"

Mace said tips should be treated as a reward for good service, not an expectation. 

"Tipping is definitely something to consider, but being New Zealanders the idea is so foreign. It hasn't been ingrained in our society."

Hospitality worker Dee Harris said staff sometimes skipped over the tip screen to avoid embarrassing customers.

"Quite a few of the servers will just go 'no,' I think they feel like a lot of us Kiwis aren't really used to the idea of tipping so they aren't trying to force it," she said.

"I feel like we get paid enough here in New Zealand, we're quite fortunate that we're not relying on tips for our base income."

Hospitality New Zealand chief executive Steve Armitage said the new Eftpos machines were a response to changing technology.

"With technology advancements people don't carry cash as much as they used to, and might not necessarily have a note or some coins to pass on," he said.

"This is another example of how technology advancement is changing the way things operate."

But he said customers shouldn't feel pressured to tip.

"It very much needs to be left to the customer. If it's something that's a little bit more discreet and provides an option for the customer to select, that's a much better way to go."

Some members of the public feared New Zealand could adopt the United States' tipping culture. Anusha Chappidi said she did not want it to become the norm.

"It should be a choice. I've been to the United States and I forgot to tip because it's not a normal thing here and they looked at me like, you know?"

She said it was fine to ask for a tip as long as saying "no" was a comfortable option.

"When there isn't an option [on the screen], you can't tip at all. So if there's a 'no' and a 'yes' option, I don't mind."

Azerbaijani tourist Murad Allahverdiyev said tipping was the norm in his country. He believed the rest of the world should do it too.

"[It] should be normal - in my country we are paying 20 percent, we have to for inspiring the people," he said.

"This is our society's psychology, we have to take care of the guys taking care of us."

Steve Armitage said tipping was becoming more common in New Zealand, but many were still resistant to it.

"I think it's something Kiwis are much more open to than they used to be," he said.

"But clearly in the current environment each dollar is prized at the moment, we're being very careful about how we're spending any discretionary money we might have, so I understand why people are hesitant around it."

He said the new Eftpos machines were a logical way to reward good service, but he said staff should make customers feel comfortable saying no.