Dec 7/25

Greetings from the Gold Coast, Australia 

“Can you believe it? We had to order at the counter, then pay there as well and then they had the affrontery to have a button asking us what amount of tip to give?”

Can’t read the full email – click here for the online version.

We’ve been in this country down-under for over a month now. We’ve had great, summery weather on the east coast and cold, windy weather for most of our visit to the south. Through is all, two things stand out.

1. The people have been friendly and the beaches truly the best in the world
2. Service at restaurants sucks

Ah, Australia! A land known for its stunning landscapes, vibrant cities, and, of course, its robust commitment to high wages. This noble pursuit of “fair” compensation for workers is something to applaud, but it comes with a twist that has left us scratching our heads. 

Let's dig in, shall we?

In Australia, the cultural norm is to eschew tipping. While there are no signs saying, “No tips, please!”, this is a given here. As one who has worked in hospitality for years in Canada knows, we like Australian visitors, but they are known as poor tippers. Their culture is the reason why.

While this may sound like a dream come true — because who hasn’t felt the pressure of calculating that perfect 15%? — the reality is a mixed bag. With the absence of tips as a motivator, what we see are higher prices for dishes and, paradoxically, a drop in service quality.

Why? Because when you waltz up to the counter to place your order, the friendly server who's just turned into a cashier loses that personal connection. There’s no time for the delightful banter about the dish of the day or the tantalizing upsell from the specials menu. Instead, it’s a fast-paced transaction akin to ordering a coffee at a trendy café — functional but lacking that warm, personal touch.

Remember that delightful moment when your server suggests pairing that decadent chocolate mousse with a glass of dessert wine? Or when they passionately recommend an extra appetizer because it’s a fan favorite? Or recommend the right pairing of wine with your meal?

Yeah, those interactions are as rare as a Sydney blue sky on a rainy day when you’re the one making the order at the till.

And let’s not forget the implications for restaurant profitability. Higher wages mean they must charge more for your dishes. This makes each meal seem inordinately expensive, especially to outsiders.

Combine this with the often less-than-stellar service, creates a perfect storm for less-than-ideal margins. 

Why? Because these establishments are missing out on what good servers will do, especially when motivated by tips that are based on the total bill. That is, upselling patrons to a more expensive dinner option and cross-selling them to ordering appetisers, desserts, pricey drinks and after-dinner liquors. 

Remember: one of the best ways to increase profitability is to increase the average size of every order. This is extremely difficult to do if your servers have not fostered a relationship with their customers.

So, what could these restaurateurs do? 

Here’s a thought: It’s all about the experience! 

Restaurants could consider reimagining their service models by incorporating elements of both self-service and engagement. How about having a designated "service ambassador" who roams the dining area to chat up the guests, offer recommendations, and ensure that nobody feels like they’re just a number?

At the most high-end restaurants we have visited, this is what happens. Sadly, however, most are not employing this kind of service and to me, they are losing out on sales and profits tremendously.

In the end, Australia’s high wages may create a tipping-free paradise, but it’s crucial for dining establishments to ensure that service remains at the forefront. 

Those precious personal interactions are what make dining memorable and profitable.

What about your business? Or your clients?

What are you doing to increase the average transaction size of every order or sale? Do you have a process to do so? Could you use some ideas for this?

If you answered yes to the last question – then take advantage of my business trainings, available for just the cost of your premium cup of joe every morning. Click here to learn more. 

Until next week, 

Stay healthy and focus on profit! 

 - Hugh 
The “Profit Accelerator” Expert

P.S: Tiny, consistent wins—1–2% changes—can compound into 50–100% more profit in a year. Our team built a tool to unlock those gains. If you’re curious about how this can transform your coaching business, click here to explore further.

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