It’s likely you’ve been to pick up coffee or lunch at a self serve restaurant and been presented with a screen prompting a tip. You may wonder what you’re tipping for as there’s no table service. If so, you’re not alone. A recent survey by financial website WalletHub reveals that nearly three in four Americans think tipping is out of control. People are experiencing tip fatigue due to ever increasing scenarios in which they are asked for tips. Tipping was once reserved for sit-down full-service restaurants. However, customers are now feeling the pressure to tip when no extra service, such as food delivery, is provided. Some key findings from the survey:
Americans’ Thoughts on Tipping
- 64% of people think a tip is something you should give when you feel like it instead of something you always have to give.
- Nearly 3 in 5 Americans think businesses are replacing employee salaries with customer tips.
- More than 1 in 4 Americans tip less when they’re presented with a tip suggestion screen.
- 78% of people think automatic service charges should be banned.
- Half of Americans say they often leave a tip due to social pressure rather than good service.
These findings reveal that increased tipping prompts may backfire on employers as people feel resentful when asked to tip when it isn’t warranted. Employers may need to weigh when tipping is actually appropriate and how to compensate employees without asking customers to subsidize wages. If tipping pressures increase, consumers may choose to eat out less and eating establishments could suffer financial losses.