Author | Jake Poinier
If you feel like you’re being asked to tip at higher rates and
at more locations, welcome to the club. According to a recent survey by
Bankrate, two-thirds of U.S. respondents have a negative view of tipping—including 32% who are annoyed by pre-entered tip screens and 30% who agree with the statement “tipping culture has gotten out of control.”
Several new phrases have entered our vernacular in the past
few years. “Tipflation” describes the increase in expected tip rates. “Tip
creep” covers the trend of touchscreen point-of-sale systems asking if you’d
like to leave a tip, even when the transaction doesn’t seem tip worthy. And “tip
fatigue” is just what it sounds like: a negative reaction to the combination of
the first two.
How did we get here? The primary culprits are the COVID-19 pandemic and the proliferation of touchscreen checkouts. In the case of the former, generous tipping became a way to show support for restaurant workers and owners whose businesses were limited to takeout and delivery during the pandemic.
In the case of the latter, there are a couple of factors.
First, touchscreens can be preprogrammed with suggested tip levels, which have crept up from the traditional 15% to 18% to as high as 30%. Second, those same touchscreens have expanded into other venues such as coffee shops, food trucks and fast-food joints. Finally, when a restaurant uses handheld credit card readers, you may feel pressure if the server is watching as you press the button on your tip selection.
Due to human nature, the higher the suggested tip, the more we’re likely to tack on to the bill. Those tactics have been quite effective, with a Forbes Survey finding that 32% of respondents leave larger tips than they did pre-pandemic, and 75% tip at least 11% more.
Tips on tipping
Even with the pandemic in the rearview mirror and restaurants operating at full capacity, the aftereffects continue to linger. If you’re confused about who and how much to tip, you’re in good company, with 15% of Bankrate’s survey respondents saying that’s how they feel. So what’s the best way to navigate the ever-expanding world of tipping?
Most of us draw a distinction between various levels of service, and that rule of thumb hasn’t changed. It’s been over a century since Emily Post wrote her first book, Etiquette. Since her death in 1960, Post’s family has continued dispensing advice on good social form.
As one might expect, their advice remains very traditional: 15% to 20% on your pre-tax bill for a sit-down restaurant or 10% for a buffet.
While there’s no obligation to tip on a takeout order, consider tipping 10% for the extra service of a curb delivery or large, complicated order. Delivery
orders warrant a recommended range of 10% to 15% of the bill.
There’s no need to overthink it, Deidre Popovich, an associate professor of marketing at Texas Tech University, told TheHill.com. “They present you with three options, and the middle option is always most appealing. I can just click the default and then move on with my life.” What about quick-service restaurants such as Starbucks, Panera, and McDonald’s? Almost half of them now give customers the option to tip, according to Toast, a restaurant management software company.
Cornell University professor Michael Lynn, who studies consumer behavior, takes different occupations into consideration. “It’s mostly
restaurant waiters and waitresses that are paid less than the minimum wage. So, for them, tips are critical,” Lynn told CBS News, whereas baristas and other service
workers are often at minimum wage or higher. “I feel obligated to tip waiters, but anybody else, I don’t feel obligated. But often I do tip if they’ve gone above and beyond."
No matter how you choose to tip, you can leave your guilt at home. “No one should feel pressured to tip more than the standard percentage, if at all,” Michael von Massow, associate professor of food economics at the University of Guelph, told CBS News. “If a business is prompting you with a tip percentage higher than you are comfortable with, you can always enter a custom
amount that you feel is appropriate instead.”
On the other hand, if you’ve had great service, there’s no need to hold back. According to Bankrate, 35% of adults in the U.S. say they feel good when they leave a generous tip.
All about balance
While the tipping landscape has grown more complex in the last few years, it’s really all about balance. For customers, it’s about making an “investment” in the people who’ve made your buying experience exceptional. For service workers, it’s about providing great customer service, while understanding that tips don’t define your worth.
Whether you’re leaving a tip for a server at your favorite restaurant, a barista at your local coffee shop, or a delivery person or courier, remember that tipping isn’t just about the money; it’s about the show of generosity and recognition for a job well done.
Holiday Tipping
With the holidays approaching, you might be thinking about what types of tips are appropriate for various service providers. Here’s a quick list of guidelines from Emily Post.
Babysitter – An evening’s pay in cash and a small gift from the kids.
Daycare provider – $25 to $75 cash or a gift for each staff member who works with your kids.
Housekeeper – Up to one week’s pay and/or a small gift.
Beauty salon staff – Cash or gift up to the cost of a salon visit.
Dog walker – Cash or gift up to one week’s pay.
This content was originally published in our award-winning magazine In Your Corner. See Issue 15 here: In Your Corner Magazine | Fall 2023