Americans are annoyed with ‘tipping culture’ and are leaving fewer gratuities | FOX Business

Americans are annoyed with ‘tipping culture’ and are leaving fewer gratuities | FOX Business

Americans are annoyed with ‘tipping culture’ and are leaving fewer gratuities | FOX Business

The tipping culture in America is undergoing a noticeable shift, hitting the restaurant industry hard. In 2024, the average tip for restaurants dropped to 18.8%, a slight but consistent decline from 19% in 2022 and 19.2% in 2021. Full-service restaurants saw even sharper decreases, with tips averaging 19.3% compared to 19.6% in 2022. Like fast-food joints, quick-service spots weren’t spared, with tipping percentages slipping from 16.5% in 2021 to 15.9% in 2024. These dips reflect a trend slowly building, even before the pandemic.

So, why are Americans tipping less? One key reason seems to be “tipping fatigue.” With the rise of payment systems that nudge customers to leave tips—often right in front of employees—consumers feel pressured. This, coupled with inflation-squeezing wallets, has led many to rethink their generosity. Ted Jenkin, a financial expert, points out that while people still want to reward good service, the psychological pressure of pre-set tipping screens is causing a backlash.

It’s not just restaurants feeling the pinch. Hairstylists, baristas, and rideshare drivers have all seen a decline in tips since 2021. A Bankrate survey highlighted that only 67% of Americans now always tip at sit-down restaurants, an 8% drop in three years. For baristas, the always-tipping crowd shrank to just 20%. Even rideshare drivers, once a tipping staple, are feeling the burn with a 7% decrease in regular tippers since 2021.

Inflation isn’t the only culprit. Analysts like Ted Rossman suggest the pandemic brought a temporary boost in appreciation for service workers, but the aftereffects—dubbed “tip creep”—have overstayed their welcome. Customers now face tip requests in unexpected places, from coffee shop counters to digital kiosks, making tipping feel less like a choice and more like a hidden surcharge. For businesses, it’s a way to offset higher wages and costs without hiking menu prices further, but for diners, it’s another reason to hit the “zero” button on those touchscreens.

Interestingly, service industry workers hold varying expectations about tips. A recent survey revealed that over one-third expect at least 15%, while others believe 14% or less is acceptable. High menu prices and non-optional service fees have also contributed to tipping declines, as diners increasingly feel they’ve already paid enough………full-loaf-600x400-1-e1700879832480 Americans are annoyed with 'tipping culture' and are leaving fewer gratuities | FOX Business[read more]

Rising Dough

Rising-Dough-e1700879911412 Americans are annoyed with 'tipping culture' and are leaving fewer gratuities | FOX BusinessIf tipping trends continue to decline, how might businesses need to adapt their pricing strategies, and what ripple effects could this have on the service industry, consumer behavior, and even the broader economy?

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