Sydney diner sparks debate after ‘hidden’ tip appears on fine dining bill
A surprise service charge tacked onto a Sydney diner’s bill has reignited the tipping debate in Australia, with many questioning whether local venues are creeping toward an American-style gratuity culture.
The discussion took off after a Reddit user shared their experience at Lana, a fine dining Italian restaurant at Circular Quay, where a seven per cent gratuity was added to a A$221 bill without any verbal confirmation. “This is the second occasion I have seen this at a fine dining Sydney restaurant,” they wrote. “Is this slowly becoming the norm? Is the gratuity actually shared with the staff who go above and beyond?”
While the charge was noted on the menu, the diner said it appeared in “tiny print”. The total bill came to A$236.45.
Other Reddit users were quick to express their frustration. “This isn’t America,” one said. “Thanks for the heads up,” added another. “I am not okay with paying an auto-gratuity. This is Australia. Once tipping culture takes hold, it will never go away.”
Another labelled the move “absolutely disgraceful behaviour”.
In response, Lana said the gratuity is optional and clearly communicated “at multiple stages” – including the booking page, confirmation email, menu, and when the bill is presented.
“The optional seven per cent gratuity at Lana is communicated at multiple stages during the booking process (on our website, in the booking widget, in the confirmation email), written on the menus, and verbalised again when the bill is presented, and is designed to reward our team for their dedication and hard work," a spokesperson told news.com.au.
“This surcharge is not mandatory and can be removed at any point, no questions asked nor judgment given, should a guest request it.”
Lana said the gratuity is managed via third-party software and is distributed entirely to the team on shift, including kitchen staff.
Despite assurances, several diners questioned whether it truly feels optional.
“They’re counting on the fact that a good number of diners will feel too awkward to ask for it to be removed,” one commenter noted. Another added: “You have to look the person in the eye who won’t be getting the extra money.”
Australian restaurants can include a service charge or tip, but only if it’s clearly marked as optional and presented before payment.
According to the Australian Competition and Consumer Commission (ACCC), the practice must be transparent and customers must have the ability to opt out.
Unlike in the United States, where service workers often rely on tips to top up low base wages, Australian staff are paid a national minimum wage of A$24.95 per hour, as of 1 July.
Jonathan Jackson, 24th June 2025
