On social media, yet another controversial topic is sparking discussions. This time, the debate involves a traditional practice in the United States: tipping. Many consumers have been complaining that the practice is becoming abusive. They are voicing concerns about tipping requests at drive-thrus or when purchasing just a muffin or a coffee at the neighborhood bakery. And they wonder: soon will we have to tip even our doctors and dentists?
Two events have been driving changes in how tips are requested or offered.
Firstly, as more businesses adopt digital payment methods, customers are automatically prompted to leave a tip in places where they normally wouldn’t. Unlike the old tip jars that buyers could easily ignore if they didn’t have change, experts say that digital requests create a certain social pressure and are harder to bypass. And your generosity, or lack thereof, can be exposed to anyone nearby – including the workers themselves.
Traditionally, American consumers take pride in being good tippers. But in places like restaurants, which typically pay their employees less than minimum wage. However, academics studying the issue say that many consumers are feeling irritated by automatic tipping requests at coffee shops and other counter-service establishments, where tipping is generally not expected, workers earn at least minimum wage, and service is usually limited.
The second event that has led to an increase in tipping requests is the pandemic. Consumers were more generous with tips during the early days of the pandemic, in an effort to show support for restaurants and other businesses that were hard hit by COVID-19.
Tips at full-service restaurants grew by 25.3% in the third quarter of 2022, while tips at fast-food or counter-service restaurants increased by 16.7% compared to the same period in 2021, according to Square, one of the largest companies operating digital payment methods. Data provided by the company shows continuous growth since the same period in 2019.
What frustrates consumers the most is that this increase in tipping requests has come just as inflation in the United States – the highest in 40 years – is directly impacting consumers’ wallets.
What is the rule for tipping?
In the book “Emily Post’s Etiquette,” authors Lizzie Post and Daniel Post Senning advise consumers to tip when using services like Uber and Lyft, as well as when consuming food and drinks, including alcohol, in restaurants. But they also write that it is up to each person to decide how much to tip at a café or take-out food service, and that consumers should not feel embarrassed to choose the lowest suggested tip amount and do not need to explain if they cannot leave any tip.
Who and how much to tip?
• Restaurants – 15% to 20% of the bill before taxes. Tips are not necessary at fast-food restaurants
• Bars – $1 per drink, such as beer or wine, and $2 per cocktail
• Coffee Shops – 10% to 15% of the coffee price, or about $1 per coffee
• Delivery Services – Between 15% and 20% of the order value. In the case of flower delivery, between $2 and $5
• Hotel Room Cleaning Service – $3 to $5 per day for 1 to 3 people in the room; $10 per day if there are 6 people in the room; $10 per day in a luxury hotel. Consider leaving a tip daily for the cleaning staff because they rotate.
• Beauty Salon – 20% for manicurists and hairdressers; 15% to 20% for massage therapists.
• Transportation – 10% to 20% for limousine drivers and ride-share drivers; 15% to 20% for taxi drivers
Source: Lohud.com