Tag: tipping survey

  • When Tipping Becomes a Customer Experience Problem

    In their Harvard Business Review article, “When Tipping Becomes a Customer Experience Problem,” authors Mark Bender, Marco Bertini, Oded Koenigsberg, and Rob Waiser explore the evolving landscape of tipping and its implications on customer satisfaction and service dynamics.

    Tipping, once a gesture of appreciation in the hospitality industry, has now permeated various sectors, including airlines, medical offices, auto repair shops, logistics providers, and even butcher counters and impound lots. This proliferation, accelerated by digital payment systems, the gig economy, and the COVID-19 pandemic, has led to customer frustration. Surveys indicate that nearly half of Americans are irritated by the current tipping culture, feeling pressured by preset tip screens and unexpected gratuity requests.

    The Expanding Scope of Tipping

    The shift towards pre-service tipping diminishes customer agency, as it removes the ability to reward service quality post-experience. This practice can also weaken worker motivation, since payment is no longer contingent on performance. Moreover, the ubiquity of tipping prompts in non-traditional settings contributes to a sense of obligation rather than appreciation, undermining the intended purpose of gratuities.

    Impact on Customer Experience

    To address these challenges, businesses should focus on three principles when designing tipping programs:

    Distinctiveness: Ensure that tipping is reserved for discretionary services where customers can observe and assess the quality of service. Visibility: Make tipping options clear and transparent, allowing customers to make informed decisions without pressure. Proportionality: Align tip amounts with the level of service provided, avoiding standardized percentages that may not reflect the actual experience.

    Implementing solutions such as private tipping, eliminating tip pooling, and linking tips to service ratings can reduce stress and make tipping fairer for both customers and employees.

    Proposed Solutions

    The evolving tipping landscape presents a complex challenge for businesses aiming to maintain positive customer experiences. By reevaluating tipping practices and adopting the proposed principles, companies can foster a more equitable and satisfying environment for both customers and service workers.

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  • Dining & Tipping in the Post‑COVID Era: What’s Changed — and What Stays the Same

    When the pandemic hit, dining out went from social outing to logistical feat. As restaurants closed or shifted to takeout and delivery, tipping norms changed dramatically. Now, with dining rooms reopened and life settling into a new rhythm, we’re seeing long-lasting shifts in how people eat — and tip.

    A recent survey from CouponCabin offers a revealing look at these post-pandemic habits. You can view their original infographic here.

    Key Stats from the Survey

    • 1,007 U.S. adults were surveyed in August 2025 about their current dining and tipping habits.
    • 33% of Americans say they tip more now than they did before the pandemic.
    • 62% tip about the same, and only 5% say they tip less.
    • The most common tipping amount was 20%, with 34% of respondents selecting it.
    • 8% of people tip more than 20%, while 19% tip less than 10%.
    • 35% of people now dine out more than they did pre-pandemic.

    (Sources: CouponCabin, Newsweek)

    What This Means for Tipping Culture

    1. Tipping is rising — even with inflation

    Despite rising prices and economic uncertainty, many Americans have continued to tip generously. That pandemic-era empathy for service workers seems to have stuck — but is it sustainable?

    2. The 20% standard holds, but extremes are growing

    While 20% remains the tipping “anchor,” more people are moving above or below that range. This signals growing frustration on one end — and growing pressure on the other.

    3. Dining out feels more premium

    Dining out is no longer the default. Many people treat it as a special experience — and tip accordingly. But when expectations rise in casual or takeout settings, it raises questions about fairness.

    4. Tips are replacing wages

    As tipping becomes universal — even for counter service or takeout — it’s clear that businesses are still relying on customers to cover what should be base wages. The line between tip and wage has never been blurrier.

    What Can You Do as a Diner?

    Be intentional. Tip when it feels appropriate, not just because the screen prompts you to. Don’t be afraid to customize. You don’t have to accept a default of 25% for a muffin and coffee. Support businesses that pay fairly. The best way to end tipping culture is to reward places that bake fair wages into their pricing.

    Related Reading on EndTippingCulture.org

    Tipping on Rideshare and Delivery Apps

    Tipping at Dog Groomers: Private vs. PetSmart

    Extreme Tip Prompts: What to Do When 100% Is an Option

    Final Takeaway

    The pandemic didn’t just change how we live — it changed how we tip. What started as a show of solidarity has evolved into a system that too often feels obligatory and unbalanced. As tipping culture continues to grow in scope and expectation, it’s time to have an honest conversation about where the responsibility lies — and whether this is the system we want to keep.

  • Americans Spent Nearly $78 Billion on Tips in 2023

    A Deep Dive into Tipping Trends

    A new LendingTree analysis of 2023 USDA data reveals that Americans dropped a whopping $77.6 billion on tips for food purchased away from home. That staggering number reflects tipping culture’s deep roots and growing pervasiveness. 

    Key Takeaways

    15.0% of spending at full-service restaurants went to tips, while the broader category of food away-from-home (including fast-food, bars, hotels, etc.) averaged 6.75%  .

    New Hampshire tops the chart: tipping 16.07% of away-from-home food spending—the highest in the nation. Utah lags at just 4.09%.

    Across the U.S., 55.7% of household food budgets now go to meals eaten out—an increase from 49.4% in 2000.

    The District of Columbia leads in per‑capita dining-out outlays, with residents spending an average of $10,291 annually, far ahead of the next highest state, Nevada, at $6,752.

    Illinois saw the greatest shift toward dining out since 2000—rising 13.5 percentage points in its away-from-home food share.

    Why It Matters to Tipping Culture

    Tipping Has Transcended Traditional Settings

    Once reserved for sit-down restaurants, tipping habits have expanded. Data even includes gratuities at quick-service venues and vending kiosks—underscoring how tipping is permeating every corner of the food economy.  Regional Norms Drive Wide Variation

    The tipping gap between states—from New Hampshire’s 16.1% to Utah’s 4.1%—highlights the influence of local customs, dining preferences, and regional living costs. 

    Dining Out Is Now the Norm

    With Americans allocating over half of their food budgets to eating out, tipping decisions now have broad economic impact, touching the lives of workers across countless food-service settings.  Economic & Cultural Pressures Fuel the Tipping Trend

    Though the study focused on totals, related LendingTree research and surveys show many consumers feel compelled to tip—even in fast food and takeout settings. This pressure is amplified by increased digital prompts and shifting norms.

    Implications for Workers and Diners

    For Workers: A $77.6 billion tipping pool is a major income stream—but its uneven distribution and dependency on consumer habits can leave workers vulnerable.

    For Diners: Tipping is no longer optional in many scenarios. Understanding where, when, and why to tip—and how much—has become a vital part of budgeting.

    For Policy & Industry: As tipping spills into fast-food and other unconventional sectors, there’s growing debate over minimum wages, tipping apps, and whether tipping norms need reevaluation.

    Final Thoughts

    The LendingTree study offers a comprehensive snapshot of tipping’s expanding role in the American dining landscape:

    New Hampshire’s 16% average sets a tipping high water mark. Over half of food spending is out-of-home, marking a cultural shift toward dining-centric habits. Combined with consumer pressure and tech-facilitated nudges, tipping is now an inescapable part of everyday transactions.

    For End Tipping Culture, this analysis raises important questions:

    Should tipping continue to spread beyond full-service dining? How do we balance fair compensation with the expectation it creates for guests? Is it time to reconsider tipping’s place in labor practices and consumer norms?

    LendingTree study

  • Americans Are Tired of Tipping

    Americans Are Tired of Tipping

    The survey found a wide range of frustrations:

    41% say tipping culture is out of control. 41% believe businesses should pay employees better instead of relying on customer tips. 38% are annoyed by digital payment screens that prompt for a tip—often before service has even been rendered.

    Younger Generations Tip Less—and Less Often

    Generational differences in tipping behavior are significant. The survey shows that Gen Z and millennials are much less likely to tip consistently across industries.

    Who always tips their hair stylist/barber?

    Gen Z: 25% Millennials: 45% Gen X: 67% Boomers: 71%

    Who always tips at sit-down restaurants?

    Gen Z: 43% Millennials: 61% Gen X: 83% Boomers: 84%

    Even the size of the tip varies:

    Only 16% of Gen Z and 30% of millennials usually tip 20% or more at restaurants. That compares to 40% of Gen X and 49% of baby boomers.

    Tip Screens May Be Hurting, Not Helping

    Digital tip prompts may backfire.

    27% of Americans say they tip less or not at all when confronted with preset tip suggestions. Only 11% say they tip more because of them.

    Interestingly, older Americans are more irritated by tip screens:

    Gen X: 45% annoyed Boomers: 44% Millennials: 35% Gen Z: 27%

    Tip screens don’t make me more generous—they just make me mad.” – Survey respondent

    Expert Insight: Tipping fatigue is real, but don’t expect it to disappear,” says Ted Rossman, senior industry analyst at Bankrate. “The rise of apps and payment terminals has made tipping more visible—and more frequent—than ever.”

    Businesses are capitalizing on the moment. Rossman explains that tipping allows employers to increase pay without raising menu prices or wages directly, shifting the cost burden to the customer.

    Final Thoughts: Where Do We Go From Here?

    This survey captures a growing disconnect: Americans are frustrated by tipping, but the systems encouraging it are more entrenched than ever. The tipping backlash—especially among younger generations—could spark real changes in how workers are paid and how customers interact with service businesses.

    Source:

    Bankrate Tipping Survey 2025 – Press Release (PDF)

  • Americans Say Tipping Has Gone Haywire—Here’s What the Data Shows

    A new Forbes article by Gary Stoller lays bare what many Americans have been feeling for years: tipping culture is out of control.

    Based on a recent nationwide survey, nearly 90% of Americans believe tipping expectations have spiraled beyond reason. The study highlights growing frustration with how tipping has crept into nearly every transaction—often with little transparency and a lot of pressure.

    At endtippingculture.org, we believe tipping should never be a substitute for a fair wage. This new data shows just how broken the system has become.

    Key Findings from the Survey

    According to the study, Americans are voicing concerns about:

    Inconsistent Expectations: People are unsure when, how much, and who to tip. Rules vary wildly by industry, region, and even payment platform. Tipping Pressure: Digital screens now prompt users to tip for self-service, takeout, and even retail purchases—often with preset suggestions of 20% or more. Tipflation: Suggested tip amounts have risen dramatically in recent years, outpacing both wage growth and inflation.

    In short, tipping is no longer about service—it’s become a confusing, guilt-based transaction that benefits employers more than workers.

    What the 90% Are Really Saying

    That nearly 9 in 10 Americans feel tipping has “gone haywire” reveals a deeper truth:

    Most people don’t want to be responsible for subsidizing wages anymore.

    They’re tired of:

    Getting pop-up screens after minimal service Feeling judged for skipping a tip Having no idea where their money goes or how much workers actually keep

    It’s not about being cheap—it’s about a system that lacks clarity, consistency, and fairness.

    The State of Tipping in 2025

    Here’s a snapshot of what Americans are saying:

    “The State of Tipping in America”

    90% say tipping has gone too far 45% feel pressured by digital prompts 37% say they’re unsure when tipping is expected Most blame businesses—not workers—for the confusion

    What’s the Alternative?

    It’s time to end tipping culture—and this survey shows Americans are ready. Here’s how we can move forward:

    Demand fair wages for all workers, not “maybe” money based on customer mood Support no-tipping businesses that build gratuity into pricing Educate others about where tips go and why the current system is unsustainable

    Tipping was never meant to replace paychecks. It’s time we stop using it that way.

    Join the Movement

    If you’re tired of guessing tip amounts, dodging digital prompts, or feeling like a villain for not paying a worker’s wages:

    📢 You’re not alone—and you’re not wrong.

    Let’s build a system where service workers earn a guaranteed, fair living—without relying on unpredictable generosity.

    👉 Learn more and get involved at endtippingculture.org

  • The Backlash Is Real: Americans Are Cutting Back on Tips — and It’s No Surprise

    A new Business Insider report confirms what many Americans are already feeling: Tipping fatigue is hitting hard—and customers are starting to push back.

    According to a recent survey, nearly 6 in 10 Americans admit they’re tipping less often or at lower rates than before.

    This shift isn’t just about being stingy. It’s about being fed up.

    Why Are People Tipping Less?

    The study reveals several reasons for this growing resistance:

    Inflation and higher costs: With food prices, rent, and utilities on the rise, many people simply can’t afford to tip 20% on everything. Tip screens are everywhere: Coffee shops, takeout counters, and self-checkout kiosks are now requesting tips—even when no service is involved. Wage frustration: Many customers believe employers should be paying fair wages, not outsourcing that responsibility to them.

    This isn’t a rebellion against workers—it’s a rejection of a broken system that pressures customers while businesses avoid their responsibilities.

    The Problem Isn’t the Customer—It’s the Model

    Tipping in the U.S. has ballooned into a confusing, guilt-driven experience that:

    Shifts the burden of wages onto consumers Encourages employers to underpay workers Creates unpredictable income for service employees

    Now, instead of being a gesture of appreciation, tipping feels like a mandatory tax—one that appears everywhere from sandwich shops to Uber rides.

    And customers are finally saying enough.

    The Business Insider Survey in Context

    Here’s what the survey featured in Business Insider found:

    Over 56% of respondents said they’ve reduced their tipping habits. Many noted that tip fatigue has made them more conscious and selective. Tipping pressure is turning what used to be a kind act into a chore—or a burden.

    This is the tipping point tipping culture created.

    What Needs to Change?

    We don’t need to “fix” tipping.

    We need to replace it—with a system where:

    Workers are paid fair, stable wages by their employers Prices reflect actual labor costs, not hidden tip expectations Customers aren’t guilt-tripped into supplementing someone’s paycheck

    In other words: Let’s end tipping culture.

    Join the Movement

    If you’re feeling tipping fatigue, you’re not alone.

    If you think it’s wrong to rely on customers to pay restaurant wages, you’re right.

    Take the next step:

    Support no-tipping businesses that pay fair wages Speak up when asked to tip for non-service tasks Share articles like this and this Business Insider report Visit endtippingculture.org to get involved

    Because tipping shouldn’t be a test of your generosity.

    It should be a choice—not a substitute for justice.