Americans Growing Tired of Tipping Practices

There seems to be a shift happening among Americans regarding tipping, especially with the rise of digital payment screens.

A recent survey by Popmenu found that 78% of respondents believe the current tipping practices are a bit excessive. Additionally, about 74% noted that restaurants have been ramping up the suggested tip amounts displayed on these screens.

Out of the 1,000 adults surveyed in March, 59% admitted they feel pressured to leave a tip when prompted by these digital displays.

Despite the mounting frustration over what some are calling “tip creep,” many restaurant owners continue to advocate for traditional tipping norms that occur during service. Vicki Parmelee, who owns Jumby Bay Island Grill in Jupiter, Florida, explained, “When you sit down and have your food brought to you, a 20 percent tip is very much part of the culture.”

Parmelee pointed out that what’s particularly bothersome for customers are the screens that pressure them to tip in scenarios where they might not have before, such as at a service counter for coffee. “It’s just annoying when you order and then feel expected to tip,” she shared.

Derek Sims, the CEO of Sims Hospitality Group in Texas, echoed this sentiment, saying even those within the industry can find these modern payment systems awkward. “It can be a really uncomfortable moment,” he remarked.

Interestingly, research shows that many consumers tend to ignore the preset tip options. About 36% usually prefer to enter a custom amount instead of selecting one of the suggested figures.

Both Parmelee and Sims agree that businesses should be cautious about making customers feel coerced into tipping. “I remind my staff that tips must be earned, not assumed,” Parmelee emphasized.

Sims cautioned that creating an environment where tipping feels mandatory could harm customer loyalty. “We don’t want to lose customers to businesses that have strange practices,” he stated.

The survey reveals that many consumers consider the context of tipping differently; they feel more comfortable skipping tips in some instances while still maintaining traditional tipping levels for restaurant servers. Although 42% admit to being more at ease not tipping in specific situations, the habit of tipping 20% at full-service restaurants largely remains.

“When good service is delivered, people want to show appreciation,” Parmelee concluded. “Most people average around a 20% tip, but if the experience is exceptional, the tip can be even higher.”