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Americans Oppose Escalating Tipping – 'We Must Use Our Own Judgment'

2023-06-09T12:53:05.118Z

Highlights: A survey reveals that two-thirds of Americans have a negative view of tipping. Fewer consumers now "always" tip when dining out than last year. Tipping at quick-service restaurants fell to a five-year low of 16.7% in the first quarter of 2023. The median wage for fast-food and counter workers is $14.34 an hour for full-time staff and $12.14 for part-time employees, according to the most recent data from the U.S. Bureau of Labor Statistics.


A survey reveals that two-thirds of Americans have a negative view of tipping and its expansion into new services due to inflation.


Jessica Dickler - CNBC

From fast-food restaurant self-service kiosks to mobile delivery apps, there are more opportunities than ever to tip for a wide range of services.

But between the high cost of living and economic uncertainty, cash-strapped consumers are starting to tip less and resent tips even more.

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According to a new report from Bankrate, fewer consumers now "always" tip when dining out than last year, or for other services, such as ridesharing, haircuts, food delivery, cleaning and home repairs.

"Inflation and the general economic malaise seem to be making Americans more stingy with their tipping habits, although we face more tip invitations than ever before," said Ted Rossman, principal sector analyst at Bankrate.

Many believe the pressure to tip has increased in the past year, according to NerdWallet's Consumer Budgets Report.

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However, two-thirds of Americans have a negative opinion about tipping, according to Bankrate, especially when it comes to digital and contactless payment notices with default options that can range from 15% to 35% for each transaction.

"Now you have to work hard not to tip, and that's what bothers a lot of people," Rossman explained.

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According to protocol experts, the norm is still to tip 20% in a restaurant. But there is less consensus on tipping for a takeout coffee or other transactions that did not involve any tipping in the past.

While tipping at full-service restaurants has remained stable, customer tips at quick-service restaurants fell to a five-year low of 16.7% in the first quarter of 2023, according to Toast's most recent report on trends in catering.

"It's partly due to tip fatigue," said Eric Plam, founder and CEO of Uptip, a San Francisco-based company that aims to make it easier to pay cashless tips.

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"During the pandemic everyone was shocked and feeling generous," Plam recalled.

"The problem is that a new standard was reached that we could not all really live with," he added, especially when it comes to tip notices in more establishments, a trend also known as tip creep.

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"We are inventing new scenarios where tipping should be given," he said.

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However, with transactions increasingly going cashless, having a method to tip service workers earning minimum wage or less is critical, Plam added.

In fact, the median wage for fast-food and counter workers is $14.34 an hour for full-time staff and $12.14 for part-time employees, including tips, according to the most recent data from the U.S. Bureau of Labor Statistics.

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"People need to know that that person's livelihood is largely based on the amount of tips they receive," Plam said.

In other cases where workers don't rely on tipping for income, "we, as consumers, must use our own judgment."

That doesn't mean consumers necessarily have to tip less, Plam added, but "think about whether that person improved your experience."

"It's time to take a stand," he said.

Source: telemundo

All news articles on 2023-06-09

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