Why Tipping Is So Out Of Control In The U.S.

Tipping in the United States is on the rise and experts are calling it tipflation. In the fourth quarter of 2022, the number of tips provided at full-service restaurants grew by 17% from the fourth quarter of 2021. Meanwhile the tip frequency at quick-service restaurants rose 16% during the same time period. Experts say that's because of the newer and sleeker-looking Point-of-Sale, or POS, systems by tech companies like Square, Toast and Clover, who also have increased their sales as a result. The pressure to tip well in front of the tip receiver, before a service is completed, or in front of other customers makes a difference for many. After customers swipe their credit card, they're typically prompted with three large tipping options on a screen. While businesses can opt out of the tipping feature, most aren't. In fact, even Starbucks started prompting customers for tips in stores in September 2022. With Americans being pressured to tip higher percentages and for more services, the question is, where is the tipping point?

Chapters:
00:00 — Introduction
02:25 — Why we tip
04:09 — Tipping in 2023
05:45 — Big Tech
09:14 — Tipping point

Produced by: Emily Lorsch
Edited by: Jacob Harrell
Senior Managing Producer: Tala Hadavi
Graphics by: Midnight Snacks

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Why Tipping Is So Out Of Control In The U.S.

[BMWROYAL]

I think we should be like other countries, get rid of tips, pay employees how much they should be paid, and price the food accordingly

[spunch]

What bothers me is that employees would rather get upset at the consumer for not tipping enough rather than being upset at their respective industry for not paying a liveable wage

[musicent]

People love to tell everyone if you can't afford to tip you should stay home. They say you shouldn't be going out and having a good time if you can't afford to tip. I think the same should hold true for the businesses, if they can't afford to pay employee's the bare minimum wage and still be profitable then they SHOULD close up shop.

[AMINOMMA]

As a European, American tipping culture is the most ridiculous thing ever. Why should a customer/guest pay the wages of the workers through anything other than the price he pays for the service (food, drinks, etc.). Sure if you want to give a little extra because the server was excellent or the food was extremely good, it's fine but it shouldn't be necessary for them to make a living wage

[castertry]

"You're being guilted into tipping on something that's not a service. It's someone simply doing their job." This is absolutely true. I hate that companies are prompting customers for a tip when you went to the physical location and got what you ordered. It's not a tip when you are doing what you are hired to do. And as long as companies are able to guilt customers to foot the bill to cover their employees living, nothing will change.

[brainown]

Its literally a way for employers to get out of paying there employees. Passing the responsibility to pay onto the customer.

[zzzzoot]

Tipping is designed to take the frustration worker have for their employer, who does not pay them fairly, and redirect it to the customer.
The employer is spared of blame, and the problem now becomes how generous the customer is.

[alinamiro]

I’m European myself, and I should say guys, your tipping practice is insane. Employers are the ones who should pay salaries. Tipping is for employees who go the extra mile, or at least if you are satisfied with the service provided. The tipping amount should also be based on this (client’s discretion). Tipping is a motivation to provide a better service, not an obligation

[KungShu]

I always feel like I'm paying a "Don't spit in my food" fee when I'm asked about a tip before actually getting anything.

[maestreiluminati]

Business owners paying their workers less than minimum wage and then convincing them the responsability lies on the customer is one history's greatest finesses.

[kataisa]

I ordered a pizza and went to the restaurant to pick it up. I unabashedly clicked on “No tip”. I already paid for my pizza, you have no right to expect a tip simply for ringing my pizza up. I refuse to feel pressured or guilty about not tipping.

[DoodleThis]

“I’m going to tip to ensure my safety”. That is BEYOND horrible and terrifying

[caddyak]

At JFK airport there is a SELF checkout drink stand that asks you for a tip when you buy a bottle of water when you literally do not interact with any workers at all.

[itsthequeenfatima]

I am an American in Paris and I was appalled at the amount of times I was asked to tip in the US and the amount expected in restaurants. Employers should PAY their workers a liveable wage. We should not be living in a tip dependant society!

[joshh]

I went to a cookie shop with my mom a few months ago, we walk in, both politely said “hello”, the cashier didn’t even respond just straight up stared at us, even while we were looking at different cookies. My mom said “are you going to speak or just stare at us?”, he eventually spoke but he didn’t really want to. When we bought our cookies he did the tip flip and we put no tip. The receipt printed, instead of handing it to us he took it and looked at it for 5 seconds and THEN handed it to us while shaking his head. These places want tips but can’t even give bare minimum customer service. It’s annoying af.

[joewoodchuck]

What has always bothered me is why a server thinks they deserve a bigger tip because the customer ordered a more expensive meal. How is it more work to bring a steak to you than to bring you a sandwich?

[rjweiss]

If a company asks for a tip before service and it starts at 20% I immediately hit NO TIP. 100% guilt free

[JadenBoss]

Whoever said it was legal to pay employees less because they make tips is the cause of this problem.

[StarchieHalo]

Being asked to tip on uber before the order is even picked by a driver is absolutely insane

[dor]

I am still in shock when i get the terminal to pay at a restaurant and the options for tip START at 18%.
Who died and made you eligible to 20% tip? Ask your employer for better pay, customers SHOULD NOT be forced for tips.