💬 Discussion

Have Americans reached their “tipping” point?

Friday, Jun 9, 2023

KA

Kyle Nowak|Alex Dobrenko|Peter Nowak

Image: The Federalist

Whether you’re ordering food through a delivery app, using a self-serve kiosk at an airport, or buying products online, Americans are being asked to tip on a wider range of services than ever before.

But while the opportunities have increased, Americans are currently leaving fewer tips than in previous years, according to a newly-published report from financial services firm Bankrate.

🔱 By the numbers: Since 2019, Bankrate has asked ~2,500 US adults a series of questions regarding their tipping habits. Compared to past surveys, the percentage of Americans who say they always tipped this year fell across every single industry.

A few examples:

  • Sit-down restaurants: 65% of Americans say they always tip, down from 73% last year and 75+% in 2021 or earlier
  • Hair stylists and barbers: 53% of people always tip, compared to 66% last year
  • Food delivery: 50% always leave a tip, down from at least 57% prior to 2022
  • Hotel housekeepers: 23% always tip, versus 27+% in all previous years

Overall, two-thirds of US adults say they hold a negative view on tipping, with men, Gen Z, and millennials being the most likely groups to not leave a tip across all industries.

đŸ“‰đŸ€” What’s behind the trend?... Bankrate analysts said the recent decline in tipping can largely be attributed to historic levels of US inflation, as well as general economic unease among consumers.

  • Outside of their personal economic situation, Bankrate found Americans’ biggest tipping complaint is that businesses should pay their employees better, with 41% saying they agree.
  • A significant number of folks also say they feel annoyed about pre-entered tip screens (35%), and they feel US tipping culture has gotten out of control (30%).

📊 Flash poll: In general, how do you feel about the practice of tipping?

Positive

Negative

Neutral

See a 360° view of what media pundits are saying →

Sprinkles in favor of tipping

  • Some commentators argue that it’s more crucial than ever that Americans generously tip workers like delivery drivers, since sit-down restaurants have seen a sharp decrease in business since the pandemic.
  • Others contend that Americans tipping for food delivery should provide as much money as they would in a restaurant, since the services they provide are comparable.

Sprinkles against tipping

  • Some commentators argue that American tip culture should be abolished in favor of responsible economic policies – like a minimum wage that people can actually live on.
  • Others contend that restaurants and other businesses have begun to take advantage of consumers by “guilt-tipping” them into paying extra money, rather than it coming out of the owners’ pocket.
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