Americans have been tipping more frequently and generously since the pandemic began, due to a combination of social pressure and newfound convenience. This shift in tipping culture is driven by changes in technology that allow businesses to shift the costs of compensating workers to customers, as well as by increased appreciation for service workers during the pandemic. However, the shift towards more digital payments has also created confusion around when and how much to tip, making tipping a source of anxiety for some customers.
Tipping increases at full-service and quick-service restaurants
According to recent data, Americans are now tipping 17% more frequently at full-service restaurants and 16% more at quick-service restaurants. This might be because kiosk technology has evolved to offer higher tip options, potentially leading people to give more without realizing it. Some Americans feel pressure to tip more because they believe it’s socially expected and because they want to show appreciation for service workers.
Changes in tipping culture at fast food and coffee shops
More stores, including fast food restaurants and coffee shops, now offer customers the option to tip. During Q4 of 2022, around 48% of purchases at such establishments included a tip – an 11% increase from pre-Covid levels. However, the tipping percentage for quick-service restaurants decreased from 16.4% to 15.9% in the last year. Experts attribute this drop to inflation and customers being overwhelmed with options to tip.
Digital payments make tipping confusing
As businesses increasingly rely on digital payments, more customers are encountering tablet touchscreens with prompts asking them whether they wish to leave a tip. This has created increased pressure for customers to decide whether and how much to tip. Some choose not to tip at all or feel guilty if they don’t give enough. In some settings, attitudes towards tipping vary widely among customers, with some feeling embarrassed if their tip is too small.
Some service workers pay it forward
Some service workers acknowledge the impact of added tips on their income and pay it forward when they have the opportunity, such as by tipping other service workers. They also suggest that customers consider tipping more generously if they can afford to do so. Despite this, tipping culture remains complex and confusing for many Americans as new technology continues to reshape customers’ interactions with businesses.
In conclusion, tipping culture in the US has undergone significant changes in recent years due to various factors including changes in technology and the impact of the pandemic. While many Americans are now tipping more frequently and generously, some are still struggling with new norms around digital payments and figuring out how much to give. It’s clear that tipping remains a source of anxiety and confusion for both customers and workers, and businesses will need to continue adapting to these changing dynamics in order to maintain good customer relations.
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