Deputy Prime Minister Paula Bennett says New Zealanders need to say thank you with their wallets.
Mrs Bennett's call follows a claim hospitality service in the United States is better than it is in New Zealand because of the tipping system.
"Overall, I think the service in New Zealand is good,'' she said yesterday.
"I always tip for excellent service and encourage others to too if we want standards to continue to improve.
"Great waitstaff can make a good meal an excellent experience - say thank you with your wallet.''
Restaurant Association chief executive Marisa Bidois said the organisation had been working hard to encourage consumers to tip.
"I 100% agree with Paula and I think this is an issue we have been talking about as an association for quite a while now,'' Ms Bidois said.
The association thought good service should be recognised, although whether it should be mandatory was another discussion.
She said tipping was a good incentive for staff, and customers should be encouraged to do so.
"Obviously business owners in the industry train staff to treat customers well - that's the basis of hospitality - but if there was another incentive thrown in there, I'm sure that would help.''
Hospitality New Zealand advocacy and policy manager Dylan Firth said tipping was becoming more common in New Zealand and customers should be encouraged but not obliged to tip for good service.
"Traditionally it has been more in high-end restaurants but it's becoming a lot more common now, even to the point of eftpos machines asking `do you want to add a tip','' he said.
The US has a strong tipping culture with two different wage rates - one for workers who receive tips and one for those who do not.
Mr Firth said the New Zealand situation was different, with tips seen as a bonus on top of wages, rather than a part of working wages.
