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F&B Magazine

Growing the tipping culture

Labour and skilled shortages are set to continue for the foreseeable future. It is predicted that a further 13,580 jobs will need to be created in the hospitality sector by the year 2011. This is in a market where New Zealand simply does not have and will not have enough able bodied personnel to meet the growth and demand for labour, not only in the hospitality sector, but in every other sector of the New Zealand economy.

Inevitably this competition for labour will continue to push up remuneration rates. While growth in rates is to some extent inevitable it could be ameliorated by an increase in tipping. While New Zealanders are yet to warmly embrace the concept of tipping many of our two million plus visitors have no such qualms. As an industry we need to embrace tipping to ensure in the first instance all our overseas visitors tip as they would in their own environment, but also work to encourage a culture where New Zealander’s are also happy to tip where they see themselves receiving excellent value and service.

The Hospitality Association continues to be vigilant in identifying and addressing areas where government agencies or major organisations are inappropriately indicating to our international visitors that tipping is not a requirement. We believe that our international visitors should be invited to tip for good service. This approach has improved in recent times and this occurs much less frequently than in the past. It is important however that all businesses continue to do their bit to identify such inappropriate messages to our visitors. More importantly they must also as part of their own business make it easy for all their customers to tip if they wish. Every hospitality business should consider having a tipping policy, having point of sale or equipment which can facilitate tipping and having appropriate messages on their menus, in their advertising, marketing and hotel information that tipping is welcome in return for good service.

As the labour market continues to tighten tipping is another tool which the hospitality industry can use to compete for talent, changing the culture to achieve this is a responsibility for all in the hospitality industry.

Bruce H Robertson
Chief Executive
Hospitality Association of NZ

30 November 2007

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