How inflation and 'fears of recession' are fueling a 'consumer backlash' against tipping culture: report

15 March 2023

The rules of tipping used to be clearly defined in the United States. Bartenders, waiters and cab drivers were tipped during the 1970s and 1980s, but no one expected to be asked for a tip when they walked up to the counter in a fast food establishment or went to a food court in a shopping mall.

Tipping bartenders and waiters was customary 40 or 50 years ago, as they were making the subminimum wage and American consumers generally realized that they needed tips to survive. When Americans visited London on vacation and wanted to leave a tip in a pub, they soon learned that British bartenders did not expect one. They were being paid an actual salary, and the U.K., unlike the United States, did not have a subminimum wage.

In recent years, however, tipping has been expanded in the U.S.; fast food workers and convenience store employees, for example, were not asking for tips in the past but are asking for them now. And according to Business Insider's Aidan Pollard, more and more consumers are rebelling against a modern "tipping culture" that they believe has gotten way out of control.

In an article published by Business Insider on March 10, Pollard reports, "As electronic cash registers have become ubiquitous at businesses from coffee shops to convenience stores, so too has the question: 'Add a tip?' But as more and more businesses call for gratuities, many in the U.S. have begun to tip less amid inflation and ongoing fears of a looming recession…. According to Vox, American shopping culture has shifted so that tip jars are a feature at nearly every kind of business now, making it clear that tipping has become expected of customers in most places."

In an article published by Vox on October 7, 2022, journalist Sara Morrison cited some examples of tipping requests that did not exist in the past — for example, someone selling merchandise at a concert in Colorado asking for a 20 percent tip. And Business Insider's Pollard notes that two landlords, in a recent TikTok video, "argued that tenants should tip them for things like fixing leaky faucets and being on call 24/7."

According to Pollard, "The shift in American tipping culture has come with some consumer backlash. Even as consumers expect to be solicited for a tip when they're out and about, some on social media are working to draw a new line, spurring regular debates…. Others on social media are discussing expanding tipping into unexpected services."

In early March, CNN business reporter Nathaniel Meyersohn discussed "tipping fatigue" with his colleague Abby Phillip, who noted that "tipping has seemed to become so ubiquitous at every kind of retail operation you end up at."

Meyersohn explained, "Folks definitely have tipping fatigue. And it's being driven by the high cost of meals and inflation, plus all the different options we now have to tip…. Tipping is down at sit-down meals, pickup orders and also, delivery. So, down across the board — clearly a trend here."

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