Image: Tips via Dan Smedley (Unsplash)
When 66% of U.S. adults have a negative view of tipping, and we are asked to tip for simple cashier transactions, we need to draw the line somewhere. To counter the effects of “tipflation,” businesses should stop requesting tips.
In a new 2024 survey by Popmenu Inc., tipping fatigue has come as a result of the recent inflated tipping amounts. This survey showed that 60% of U.S. consumers are simply fed up with being prompted to tip for different services and at various establishments. This percentage is up 7% from just last year. Customers are not only frustrated but tipping less, with a survey of 1,000 U.S. consumers revealing more people tipping under 10% and fewer tipping 20%. This demonstrates how the shift to digital checkout systems and the frequent higher tip prompts have backfired, leading to outcomes opposite of their intended effect.
The majority of U.S. adults surveyed by Pew Research Center agree that they are being asked to tip at more places than they were expected to five years ago. Not only that, but a majority of Americans expressed a confusion about when and how much to tip for different services. This confusion around when and what to tip for still remains a slippery slope for customers who feel obligated to tip when they really shouldn’t.
The pandemic contributed largely to “tipflation” via the rise of digital checkouts to avoid handling cash and lessen close contact. These machines have become our new norm as many Americans have experienced the dreadful “turn around” maneuver. This causes the customer to be presented with the awkward interaction of choosing a tip amount in front of the employee. These machines also have an “anchoring effect;” the cognitive bias to pick the first option presented on the screen. When the first option on the screen suggests a 20% tip, consequently the new “anchor” will be 20% and go up from there — therefore increasing the average tip amount.
The purpose of tipping is supposed to benefit workers and raise the overall level of service the customer is being provided. When an employee has the incentive of being tipped based on their performance, the employee will in theory perform a higher level of service to obtain more tips. This incentive applies no matter how quick the transaction. While leaving a tip is by no means a bad way to show gratitude toward workers, the recent switch from choosing to opt-in to tip (via tipping jar) to having to opt-out of tipping at quick service establishments has had overall detrimental effects on tipping culture in the U.S.
To combat the effects of “tipflation” on a customer-level, having an overall more mindful approach can combat the “anchoring effect.” Taking an extra second to think about clicking the first tip amount can save you from the regret of tipping a larger amount than preferred. On a larger scale, companies need to re-evaluate how they set up these digital checkout systems. In an article by the National Restaurant Association, establishments are encouraged to clearly communicate tipping policy to patrons, make their tipping suggestions reasonable and to not lead with the highest tip amount, as well as making sure to always include a “no tip” option. These suggestions are to not only help maximize tip earnings for employees but also to avoid awkwardness for the customer.
If tipping culture continues to subject customers to tip out of awkward obligation rather than choice, these trends in increased “tipping fatigue” and overall confusion about when and how much to tip will likely continue and have damaging effects on customer and establishment relationships.
Grace Powell is a second-year Media and Culture major with a minor in Journalism.