11 Reasons Americans No Longer Want to Tip
The tip jar, or worse, the tip screen, has become a ubiquitous part of American life. You’ll find one at the dog groomers, the dry cleaners, and your local coffee shop.
In restaurants, you may find a service charge listed at the bottom of your check and still be provided with a line to add additional gratuity. And, in many cases, pre-loaded tip suggestion screens ask for 25% or more.
For many, it seems tipping culture has gotten out of control, but that’s not the only reason so many Americans are sick of it. There are many solid arguments for forgoing the standard tip.
1: Businesses Should Pay More
A recent Bankrate survey showed that 41% of Americans wish businesses would pay their employees more rather than forcing them to rely on tips to make a normal wage. In many states, tipped employees receive a lower minimum wage than they would for other jobs.
The federal minimum wage for tipped employees is only $2.13 per hour. If the employee doesn’t make the federal minimum with tips included, the employer must make up the difference. However, tipped employees in these states often end up making exceptionally low wages overall.
2: Pre-Entered Tip Screens Are So Annoying
We’ve all encountered it: You go to pay for your coffee, and the barista hands you a screen to tap your card. The screen then asks you not if you want to tip but how much you’d like to tip.
A growing number of Americans are fed up with the assuming screens. In the Bankrate survey, almost a third of Americans (32%) said they had a negative view of tipping, at least in part because they were annoyed by pre-entered tip screens.
3: Tipping Culture Is Out of Control
According to a WalletHub survey, the majority of Americans (75%) believe tipping culture is out of control. Businesses that historically didn’t request tips are now requesting them.
You can’t pick up food from a counter, buy a cup of coffee, or order something through a delivery app without feeling pressure to tip. Even Apple Store employees are trying to get in on the tipping craze, and it’s giving Americans tip fatigue.
4: Not Sure Who to Tip
Tipping culture has become confusing, and Americans aren’t sure which service providers they should tip. According to a CreditCards.com report, 57% of Americans tip delivery drivers, while the rest don’t.
This shows that some consumers tip regularly while others choose not to, making it difficult for people to assess social norms. Many aren’t sure which services they should tip for anymore.
5: Rather Pay Higher Prices
Many Americans say they would rather pay higher prices for services than have to worry about tipping. Bankrate’s survey showed that 16% of Americans would be willing to pay a higher rate in lieu of tipping.
Of course, the majority of Americans don’t feel that way, probably because they’re already feeling strapped for cash. Prices are up across the board, and many Americans don’t want to tip more or see further price increases.
6: Confused About How Much to Tip
The amount Americans tip has fluctuated over the years, and it’s always been a point of contention for some. For example, while many say you should tip 20% for restaurant service, some feel that amount is only appropriate for high-end dining, while casual dining should top out at 15%.
With the advent of more tipping requests from a variety of services, Americans are even more confused. Do you tip your barista 20%, just like you would a server at a restaurant? What percent do you tip your barber, nanny, or plumber?
Questions like these are making tipping feel like an even more daunting chore. According to Bankrate, 15% of Americans say confusion about how much to tip makes them not want to tip at all.
7: Didn’t Provide Much Service
According to a survey from CreditCards.com, the majority of Americans still tip for service at a sit-down restaurant. This makes sense, as the server often goes out of their way to ensure you have a great experience.
However, in many situations, businesses ask for tips when minimal service is provided. If you’re ordering food that you pick up yourself, for example, tipping feels strange. After all, no one brought you your food, refilled your water, or cleared your plate.
8: It’s Ineffective
One of the major arguments in favor of tipping is that without it, restaurants will be forced to raise prices in order to pay employees more. This isn’t really true, though.
In reality, if restaurants add on a service fee or increase prices instead of asking you to tip, experts say you’ll end up spending roughly the same amount as you did when tipping was the norm. Tipping also doesn’t lead to better service. Research shows our tipping habits are pretty arbitrary and often have to do with inconsequential things, like whether a server squats next to our table or stands.
9: Becoming Unaffordable
Services are quickly becoming unaffordable overall, and tipping is making that worse. If you feel like you have to tip significantly for your morning coffee or when hiring a babysitter for the kids, you might indulge in those activities less.
Suddenly, your Starbucks habit is down to once a week or less because your $6 coffee costs $7 or more with a tip. And, you might decide to have a date night at home with your partner after the kids go to bed because by time you add a tip to the babysitter’s fee, you’re over budget.
10: They’re Discriminatory
Americans don’t tip purely based on the level of service. Research shows that we’re actually incredibly discriminatory with the way we assign tips, often giving more to more attractive service providers.
Many Americans are striving to do away with discriminatory practices in our society. Getting rid of tipping seems like a no-brainer from that perspective.
11: It Hurts Businesses
The service industry doesn’t understand this as a whole, but many believe relying on tips to cover adequate employee wages hurts the business’s profits. A 2014 report by the Restaurant Opportunities Center found that restaurants in states that require businesses to pay service workers the full minimum wage (rather than the tipped minimum wage) make more profits.
The report showed that paying workers more, rather than forcing them to rely on tips, caused them to stay at their jobs longer and increased productivity. It also encouraged them to spend more money, boosting profits throughout the community.
The Current State of Tipping
According to Bankrate, fewer Americans are tipping each year. Sixty-five percent of Americans say they tip for service at sit-down restaurants today.
In 2022, 73% of Americans said the same thing. The number was even higher in 2021 (75%) and 2019 (77%). Tipping is also less prevalent in other industries, including home repairs.
Generation Gap
Tipping seems to increase with age. For example, 70% of those ages 59 to77 tip their hairstylists regularly. However, only 24% of Gen Z does the same.
In fact, Gen Z tips less across the board. They’re the least likely to tip at restaurants, in hotels, or in taxis.
Tipping in the Rest of the World
Much of the world doesn’t encourage tipping. In Japan, for example, tipping is seen as awkward and insulting in many instances. Tipping isn’t common in Denmark, China, or parts of Europe, either.
In places like France, a service charge of 15% is standard, and consumers may round up to the nearest euro when paying their bills. Still, America’s tipping culture is unique in that there isn’t a set standard.
What Happened When We Tried to Ban Tipping
The no-tipping movement isn’t entirely new. States have attempted to ban tipping, but it hasn’t worked.
According to Business Insider, seven states banned tipping in the early 1900s. However, they typically argued tipping was “un-American” and didn’t push for higher wages at the same time. By 1926, all of the anti-tipping laws had disappeared.
Currently, some legislators are pushing to abolish the tipped minimum wage and raise the federal minimum wage for all service workers to $7.25 per hour. This is unlikely to eliminate the tipping culture in the U.S., though, given that many states already require $7.25 per hour and Americans still tip nonetheless.
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