Americans reject “tip creep” “It’s time to take a stand,” says the expert

  • There are more opportunities than ever to tip for a wider range of services.
  • Between the high cost of living and the uncertain economy, cash-strapped consumers are starting to tip less.
  • Two-thirds of Americans have a negative opinion about tipping, according to Bankrate, particularly when it comes to contactless and digital payment requests with predetermined options.

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

But amid the high cost of living and the uncertain economy, cash-strapped consumers are starting to tip less and are feeling even more sensitive to tipping requests.

Fewer consumers now say they “always” tip when dining out compared to last year, according to a new report from Bankrate, or for other services, such as ride-sharing, haircuts, food delivery, cleaning and repairs housekeepers.

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“Inflation and general economic distress appear to be making Americans more stingy with their tipping habits, yet we are facing more calls to tip than ever before,” said Ted Rossman, senior industry analyst at Bankrate.

Many believe the pressure to tip has increased over the past year, NerdWallet’s also found the consumer budget report.

However, according to Bankrate, two-thirds of Americans hold a negative opinion about tipping, particularly when it comes to contactless and digital payment requests with predetermined options that can vary between 15% and 35% for each transaction.

“Now you have to go out of your way not to tip and that’s what a lot of people resent,” Rossman said.

Tipping 20 percent in a sit-down restaurant is still the standard, say etiquette experts. But there is less consensus around tipping for take-out coffee or other transactions that used to involve no tipping.

While tipping at full-service restaurants held steady, tips at quick-service restaurants by guests fell to a five-year low of 16.7 percent in the first quarter of 2023, according to the latest Food Trends Report. Toast restaurants.

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“Part of it is tipping fatigue,” said Eric Plam, founder and CEO of San Francisco-based startup Uptip, which aims to make tipping easier without cash.

“During Covid, everyone was in shock and feeling generous,” Plam said.

“The problem is that it’s reached a new standard that all of us really couldn’t live with,” she added, particularly when it comes to tipping tips across a wider range of establishments, a trend also known as “tip creep.” .

“Now we are inventing new scenarios in which the rollover should occur.”

However, as transactions are increasingly cashless, having a method for tipping workers in the service sector who earn minimum wage or below minimum wage is critical, Plam added.

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

“People should know that that person’s livelihood is largely based on the amount of tipping that occurs,” Plam said.

In other cases where workers don’t rely on gratuity for income, “we, as consumers, should use our own judgment.”

That doesn’t mean consumers should necessarily tip less, Plam added, but “think about whether that person improved your experience.”

“It’s time to take a stand,” he said.

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