Tip screens have become a common sight, and many consumers are starting to feel overwhelmed by them.
A recent survey by Bankrate reveals that 41% of Americans believe the tipping culture has spiraled out of control, marking a 6% increase from the previous year. This sentiment is particularly strong among Gen Xers and Baby Boomers, with 45% expressing similar views.
“The high cost of living is a significant factor, and people are reacting to the relentless push for tips that we’ve seen in recent times,” noted Ted Rothman, a senior industry analyst at Bankrate.
Pre-set tip options are seen as a particular annoyance, with nearly 40% of respondents indicating it bothers them. This sentiment aligns with the growing prevalence of digital payment technologies, which have made tip requests nearly ubiquitous, from quick-service restaurants to coffee shops.
The latest payment systems make it easier for businesses to request tips, which could, in theory, provide extra income for workers. However, Rothman suggests it’s also a way for employers to enhance employee pay without visibly increasing prices.
“It’s really just a method of raising costs without actually raising prices,” he explained.
A large portion of respondents, 41%, expressed the opinion that businesses should provide better wages for employees instead of depending on tips. However, interestingly, only 16% said they would be willing to pay more if tipping were eliminated altogether.
The older generation sees it differently, yet still tips consistently.
Older individuals often maintain negative views on tipping; however, they are also more likely to still tip, according to Bankrate’s findings.
Over 80% of Gen Xers and Baby Boomers reported that they always leave tips at sit-down restaurants, in contrast to 61% of millennials and just 43% of Gen Zers.
This generational divide is also evident in other service industries, where older adults tend to tip more frequently than their younger counterparts, including for barbers and rideshare drivers.
As for the amount tipped, about 35% of respondents mentioned a notable difference: only 16% of Gen Z reported tipping at least 20%, compared to 49% of Baby Boomers.
Bankrate found that Americans have generally reduced their tipping compared to the peak during the pandemic in 2021, and while complaints about tipping have risen, the overall frequency has remained steady.
“There are more complaints, but after a decline in recent years, the rate of tipping has stabilized,” Rothman remarked.
Looking ahead, Bankrate predicts that in 2025, people will still be inclined to tip across various services.
- Sit-in restaurant server: 70%
- Hairstylist/barber: 54%
- Food delivery person: 52%
- Taxi/rideshare driver: 43%
- Hotel housekeeper: 25%
- Coffee shop barista: 18%
- Furniture/appliance delivery workers: 15%
- When picking up takeout food: 12%
- Home services/repair workers: 9%.
This recent tipping survey by Bankrate was conducted with a sample of 2,445 U.S. adults from April 29 to May 1.
