Tipping is becoming a sore spot for a lot of Americans, and they’re not holding back. A recent Wall Street Journal article received over 1,000 responses from readers who say they’re tipping less than ever. Many are frustrated by tip requests for simple transactions, like grabbing a bottle of water from a fridge, or finding surprise service charges tucked into restaurant bills. Some even want the U.S. to ditch the tipping model altogether and bake service costs into menu prices, like other countries do.
Consumers are fighting back in their own ways. Some are ignoring those digital tip prompts at counters, sticking to cash tips to keep things on their terms, or only tipping when the service really earns it. Others are cutting back on dining out, ordering fewer items, or just cooking at home to save some cash.
The National Restaurant Association says about 16% of restaurant owners are tacking on fees or surcharges to cover rising costs, especially in places like California, where minimum wages have gone up. And those credit-card surcharges? They’re pushing some diners to pay their whole bill in cash. In fact, a February survey by the same association found 71% of consumers would jump at restaurant discounts for cash payments.
Digital tip screens are another pain point. A survey by Intouch Insight showed 45% of people "feel pressured" to tip when staring down at those payment screens favored by coffee shops or concession stands--and only 13% of respondents found them helpful. With restaurant prices up over 30% since before the pandemic, it’s no shock that visits and tips took a dip last year.
Even though consumer views of full-service restaurants have gotten better since the COVID-19 pandemic, plenty of folks are fed up. Bad service, QR code menus, and subpar experiences are making diners less forgiving--and less generous with their tips.