ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

At Least 66% of Americans Don't Like Tipping, 41% Expect Businesses To Pay Their Employees Better: Survey

Some think tipping has gone too far (30 percent), and others are just confused about when and how much to tip (15 percent).
UPDATED JAN 22, 2024
Cover Image Source: Tipping | Photo by Karolina Grabowska |Pexels
Cover Image Source: Tipping | Photo by Karolina Grabowska |Pexels

Tipping in the US is a bit of a puzzle—there's no set rule, and most Americans have some gripe about it. A Bankrate survey found that 66 percent of adults don't like tipping. Some wish businesses paid employees better (41 percent), others find pre-entered tip screens annoying (32 percent), some think tipping has gone too far (30 percent), and others are just confused about when and how much to tip (15 percent). Despite these complaints, people still tip, especially at sit-down restaurants where 44 percent typically tip at least 20 percent. But for services like haircuts, food delivery, and taxis, everyone has their own take on tipping in 2024.

Image Source: Photo by Jack Sparrow  |Pexels
Is tipping for services necessary? (representational image) Pexels | Photo by Jack Sparrow

Waitstaff often gets tips, but fewer people tip each year. In 2023, 65% of U.S. adults always tip at sit-down restaurants, down from 73% in 2022 and 75% in 2021.

Home repair workers receive tips less frequently, with only 10% of U.S. adults always tipping, a decrease from 12% in 2022.

Women are more likely to tip, with 60% always tipping their hair stylist, compared to 46% of men.

Tipping increases with age; baby boomers tip the most frequently, while only 24% of Gen Z, 40% of millennials, and 67% of Gen X always tip their hairdresser.

Tipped workers earn a federal minimum wage of $2.13 per hour, expecting to supplement it with tips. 41% of all U.S. adults believe businesses should pay better, rather than relying on customer tips.

Image Source: Photo by Adrienn |Pexels
41% of U.S. adults believe businesses should pay better, rather than relying on customer tips (representational image) | Photo by Adrienn |Pexels

Gen Zers and men tip the least among demographics. The frequency of U.S. adults tipping has decreased since 2019. In 2023, fewer people tipped workers in various categories. Among tipped services, sit-down restaurant servers (65%) and hair stylists (50%) are most likely to always receive tips. In contrast, fewer people tip for food delivery services.

People who use home services, pick up takeout food, and receive furniture/appliance delivery are the least likely to always tip: 10% for home services, 17% for furniture/appliance delivery, and 13% for takeout.

Tipping tendencies vary by demographics. Men, in general, tip less than women:

Waiters at sit-down restaurants: 70% women, 60% men

Hair stylists/barbers: 60% women, 46% men

Food delivery workers: 54% women, 45% men

Taxi/rideshare drivers: 45% women, 36% men

Tipping frequency increases with age. Gen Z is least likely to always tip, while baby boomers are most likely. The generational difference is most significant for hair stylists, where only 24% of Gen Z always tip compared to 70% of baby boomers.

An exception is home services; Gen Z is the most likely (15%) to always tip, while only 6% of baby boomers do so.

Image Source: Photo by Helena Lopes |Pexels
Gen Z is the most likely to tip for home services (representational image) | Photo by Helena Lopes |Pexels

In 2023, Americans were often unsure about tipping, with 30% feeling that tipping culture had become overwhelming. Older generations, especially Gen X and baby boomers, shared this sentiment more than younger ones. Overall, 66% of people have at least one negative feeling about tipping, with 32% annoyed by pre-entered tipping suggestions. Economic uncertainties make Americans more conservative about tipping despite increased tipping invitations.

Interestingly, 16% are willing to pay higher prices to eliminate tipping, with younger Americans more open to this idea. Pain points also include confusion about tipping (15%) and a 9% decrease in tipping since COVID-19.

However, not all Americans view tipping negatively; nearly 44% who dine at sit-down restaurants typically tip at least 20%. About 35% feel good leaving a generous tip, and 14% report tipping more since the pandemic.

Image Source: Photo by RDNE Stock project |Pexels
Nearly 44% who dine at sit-down restaurants typically tip at least 20% (representational image) | Pexels | Photo by RDNE Stock project

Tipping can be confusing, but here are quick tips:

1. For personalized services, tip each worker individually.

2. For inexpensive services (around $5 or less), leaving a dollar or spare change is usually enough.

3. Keep some cash for services like valet parking or hotel housekeeping. If tipping isn't possible, ask about using apps like Venmo or Zelle. Always check company policies on tipping.

MORE ON MARKET REALIST
"Wow spending $109 at Albertsons just for a couple of basics is brutal."
1 day ago
The man received the note from his grandmother who worked in the finance department at Universal Studios.
3 days ago
The NBA star was visiting a jewelry store with which he also collaborated on a signature collection.
3 days ago
The country star has consistently been in the news for his generosity as much as his music.
4 days ago
The firm tried to cancel the trade but an error in the system prevented it from doing so.
4 days ago
While the returnless refund policy saves money for retailers, it creates some problems as well.
4 days ago
The mother of one of the three boys first thought that he was playing a prank when he told her about the cash.
5 days ago
Although the kitchen makes it look like another family home, Jenner's house is a mansion with top-of-the-line amenities.
6 days ago
The man admitted that the watch had been handled roughly since he didn't know its real value.
6 days ago
It made her realize how it was something that her husband would never face.
Nov 13, 2024
You need to look for the series date located on the right of the photograph of George Washington.
Nov 13, 2024
Winfrey assured him that it isn't too expensive saying that it costs only about "a hundred something" dollars.
Nov 11, 2024
The shiny blue suitcase itself made up for the investment and she made more startling discoveries.
Nov 10, 2024
Many took to the comment section and talked about the situation, with some saying that it was no big deal.
Nov 10, 2024
The traveller took to X to share the screenshots of the apps showing the price difference.
Nov 9, 2024
Getting struck by lightning and then surviving to win a lottery worth $1 million is next to impossible.
Nov 8, 2024
When the bill came, the group of four was shocked and their reactions were captured in a TikTok video which now has over 8.8 million views.
Nov 8, 2024
Parcells wrote the checks worth millions and never even asked the players to pay the money back.
Nov 7, 2024
The way he lived and his chosen career path never gave anything away about his investments.
Nov 7, 2024
She also recommended taking time before responding to messages to gauge the person's real intentions.
Nov 6, 2024