Australian Eateries Turn To Automatic Tipping as Cost of Doing Business Climbs

Australian restaurants facing a mounting cost-of-doing-business crisis are turning to automatic service charges as a way to shore up revenue. The practice is legal under Australian consumer law as long as customers are notified beforehand and can opt out, but it risks alienating diners in a country where tipping has traditionally been optional.

Wes Lambert, chief executive of the Australian Cafe and Restaurant Association, said only a handful of businesses in central…