More Stores Offer Customers the Option to Tip
Tipping has long been a part of American culture. While it is not mandatory, it has become a social norm to tip for various services, such as dining in restaurants or delivery services. However, with the advent of technology and the pandemic, tipping culture has undergone significant changes.
In recent times, more stores, including fast food and coffee shops, have started offering customers the option to tip. A recent report by Toast revealed that around 48% of purchases at fast food restaurants and coffee shops included a tip during Q4 of 2022. This is an increase of 11% from pre-Covid levels.
Americans are Tipping Less
However, even with more stores offering tipping options, Americans are tipping less than before. According to Toast, the tipping percentage for quick-service restaurants in the US dropped from 16.4% last year to 15.9% last quarter.
Experts attribute this decrease in tipping to several factors such as inflation, overwhelming options to tip with a card, and lack of clear norms. The shift to digital payments and tablet touch screens has enabled business owners to shift the costs of compensating workers directly to customers, leading to a different tipping culture.
Impact of Pandemic on Tipping Culture
During the pandemic, customers were encouraged to tip generously to help keep restaurants and stores running amidst tough times. This raised expectations further for employees who largely depended on tips for their livelihood.
The shift towards digital payments and tablet touch screens during the pandemic proved more intrusive than low-pressure cash tip jars at the counter or traditional cash transactions.
Pressure on Customers
With several places now offering digital tipping options through tablet touchscreens, customers feel pressured about whether they should add a gratuity and how much they should give. The touchscreen can be overwhelming as it requires customers to take some time and make a decision. Some even deliberately walk away from the tipping screen without tipping.
Varying Attitudes Towards Tipping
Tipping has always been an emotionally charged decision, and attitudes towards tipping in these new settings vary widely. While some customers tip no matter what, others feel guilty or embarrassed if they don’t tip generously, especially in the service industry where workers depend on tips.
Additionally, some customers refuse to tip for pricey items unless the service goes beyond their expectations. This creates space for subjective evaluation of service quality and results in varying amounts of tips given to employees.
The Bottom Line
Throughout the years, tipping culture has undergone several changes both culturally and technologically. The shift towards digital payments and touchscreens in service industries has caused customers to feel pressured about making a decision on whether to tip or not. Additionally, inflation and lack of clear norms have led Americans to tip less than before. Nonetheless, the significance of tipping culture remains as employees in service industries depend on tips for their livelihoods.
Image Source: Wikimedia Commons
