Hospitality Business Magazine

Tips on Tipping for Kiwis

Tipping in New Zealand: A Friendly Nod to Great Service

In New Zealand, the act of tipping is not driven by obligation but by satisfaction and personal choice. Unlike many places where tipping feels almost mandatory, here it’s like giving a friendly nod for great service. It’s not expected every time we dine out, but when it happens, it’s a big thumbs up to the staff.

Appreciation Over Expectation

In our corner of the world, tipping is a sign of appreciation, not an expectation. This relaxed approach is thanks to our fair minimum wage laws and solid wage growth, ensuring that our hospitality workforce isn’t dependent on tips to make a living. When customers do leave a tip, it’s a bonus not a necessity!

Tipping: Diner Discretion

Encouraging tipping as a voluntary show of gratitude allows customers the opportunity to reward a job well done. It’s about acknowledging exceptional service when they see it, and if their budget allows.

Transparency with Tips

The Restaurant Association of New Zealand recommends clear tip distribution policies. While there’s no universal method, openness about how tips are shared can help avoid misunderstandings and ensure fairness within your team.

Key Insights for Businesses

Diverse Practices: The role of tipping varies across our industry. For some, it’s a significant boost to earnings; for others, less so. Understanding this landscape can help tailor your approach.

Automatic Tips – Automatic tip suggestions can feel pushy to some customers. Offering the choice to tip without pressure respects customer choice and maintains the genuine nature of gratuities.

Service Charges for Groups: Applying a service charge for large parties is generally accepted, provided it’s communicated clearly. This practice aligns with international standards and can streamline operations for your business.

Tipping in New Zealand is about giving and receiving thanks. It’s an optional, yet impactful way for customers to show their appreciation. For your business, it’s an opportunity to recognise and celebrate your team’s hard work. If we embrace this aspect of our culture with openness and integrity it will ensure a positive experience for all. – [Source Restaurant Association of NZ]