Tipping for Services Are on the Rise—Americans Take To Social Media to Debate About Rising Tips

Tipping for services is on a steep rise across the US, and businesses have started asking a little extra money for almost everything, including fast food restaurants, grocery stores, plumbing, online shopping, stadiums, and even computerized self-checkout machines. As per a Bankrate report, about two-thirds of Americans have a negative view of tipping, particularly when it comes to contactless and digital payment prompts. These prompts mostly range between 15% and 35% per transaction. Thus, about 30% of Americans say that the “tipping culture has gotten out of control,” as per a CNBC report.

Outrage on social media

People have turned to social media to express their anger over the rising tips. A man posted a video on X (formerly Twitter) about how he had a three-course meal with the best pizza and the best pasta but didn’t need to tip as he was in Italy. He then says coming to Miami, he was forced to tip for getting just a cup of coffee.

Another woman echoed the man’s sentiments and shared an even more bizarre experience. The woman said that she had to tip for getting napkins, and today, doormen who hold the door to restrooms are also getting tips.

One user further said that America has entered a new level of societal degradation as she asked for a tip by a self-checkout machine which wasn’t even operated by a staff. She added that tipping feels like a second Value Added Tax.

Tip fatigue

As per the CNBC report, the trend of rising tips is often referred to as “Tip Creep.” Further, a survey revealed that shoppers are experiencing “Tip Fatigue” and they have started tipping less and less while resenting tipping prompts even more. According to Michael Lynn, a professor of consumer behavior and marketing at Cornell University, the fatigue is turning into irritation as the trend goes forward.

Why tipping has changed?

1. The pandemic

In an NPR report, Shubhranshu Singh, a professor at Johns Hopkins Business School says that consumers started tipping people who aren't used to getting tipped during the pandemic, and normal tips rose more than usual to support the essential workers.

2. Advancing technology

Further, the report adds that developing the technology around payment systems has contributed to rising tips. Today, a screen prompts for a tip, and the person who provided the service is right in front of the customer's eyes adding social pressure, per Singh. This is a strong factor in the case of Uber and Lyft, where customers are asked to tip after their ride is complete. Over 60% of the customers don’t tip as there is no societal pressure.

3. The inflation and the uncertain job market

Businesses are fighting to keep the costs and prices low amid rising inflation. Thus, the brunt of it is born by the wage workers who are paid less. They, therefore, depend on tips for a significant share of their income.

Flipside to fading tips

While customers are avoiding tipping for airport snacks and footlong subs, they are paying less to the workers. Several of these workers depend mostly on tips. However, even if the tipping culture gets under control, customers will surely not be paying less. As the tips go away, businesses will be forced to raise the wages and the cost will ultimately be borne by the customer.