Is America’s Tipping Culture Out of Control? Here’s How to Deal with Creeping Tipping

When Ted Rossman was at Newark Airport in New Jersey the other day, he got a shock with his sandwich.

Rossman, a senior industry analyst for financial information site Bankrate, went to a self-service kiosk to buy a snack before a flight, scanned the item himself, and asked for a tip.

Since there was no other human involved in the transaction, just a machine blinking at him, he was more than a little stunned.

“People are being asked to tip more than ever,” Rossman says. “There are crazy examples that no one would have thought of 10 years ago. It’s getting harder to avoid them.”

That’s why Americans are apparently getting tired of tipping, according to a new BankRite poll on the subject. In fact, 59 percent of respondents said they have at least one negative view of tips.

Which is probably why the percentage of people who tip is down in almost every area you can imagine compared to 2021. For food delivery workers, that number dropped from 59% to 51% during that time period.

For taxi or ride-hailing drivers, from 48% to 41%. For hotel housekeepers, from 28% to 22%. For baristas, from 23% to 20%.

What is happening?

“Tips in America are really out of control,” says Kashif Ahmed, a financial planner with American Private Wealth in Bedford, Massachusetts. “I understand that many people get most of their paychecks from tips, but companies are starting to ask for tips when no extra work is done. In some cases, no one is even there!”

The discontent appears to be widespread. In a separate WalletHub survey, 74% of Americans said tips are out of control, 57% said companies are replacing salaries with tips, and 27% said they tip less when they’re presented with a suggestion screen.

To be clear, this is no disrespect to the hardworking people in often unpopular customer service jobs. The federal minimum wage in America is just $2.13, so millions of people rely on these tips just to survive.

But the public seems to suspect that companies are shedding costs by getting customers to contribute to their employees’ needs. In a survey by Bank Reit, 37% of respondents said companies should pay their employees better, rather than relying so heavily on tips.

For a nation already in financial distress, especially with inflation rates soaring due to the rising cost of almost everything, the state asking for more money all the time is causing a backlash.

Here are three things to keep in mind amid the growing demand for advice:

The touch screen is not your boss.

One of the hidden factors behind “tip inflation” is the tablet’s touch screen that has pre-loaded amounts. You may be offered a few different options such as 18%, 20%, 25%, or even 30%.

You don’t have to do what the touchscreen tells you to do, so don’t feel threatened by the technology. There’s usually a “custom tip” button next to those presets, even if the company makes it hard to find, so enter the amount you feel is most appropriate.

It’s okay to say no.

There’s a lot of guilt and shame in these money-related moments, when there’s a long line behind you, lots of eyes watching your behavior and a waiter staring at you. You don’t want to look like Scrooge.

But if the situation doesn’t call for a tip, or you don’t have the extra money to hand out, don’t feel emotionally pressured to tip just because you’re afraid of what others will think.

Use your best judgment.

Don’t let your anger at all the tipping these days affect your tipping in every area. Use your discretion regarding situations that truly warrant a tip, and when it’s necessary, tip generously.

“Do you need to tip someone who took your order on the touch screen? No, because that’s something you could have done yourself if you had the chance,” suggests Andrew Herzog, a financial planner in Plano, Texas.

“But do you need to tip someone who cuts your hair, delivers your pizza, or waits on you? The answer is probably yes. The tip should apply to something you were unable or unwilling to do yourself.”

—Chris Taylor, Reuters