7 Ways Tipping Culture Has Changed (Bring Back Exceptional Service!)

While everyone is looking for ways to keep more cash in their wallets these days, nobody wants to be stingy when it comes to tipping. However, tipping has been a quick-moving cultural target over the last few years.

The rise of prompts on apps such as DoorDash, at point-of-sale terminals, and on receipts has created multiple sources of pressure when it comes to tipping. Anyone feeling lost about when to tip and how much is not alone.

Here are just a few of the changes that have occurred in the last few years when it comes to tipping.

1. Tipping is expected in more places

We are used to seeing an unassuming tip jar at smoothie joints and coffee shops. But tipping used to be a bonus, never an expectation unless you were at a sit-down restaurant with servers.

These days, everyone expects a tip — from your Uber driver to your hairdresser. A Pew Research 2023 survey found that 72% of Americans said tipping was expected in more places than it was five years previously.

2. It’s harder to know when you are supposed to tip

There is not a firm consensus on when you are supposed to tip. According to Pew, most people always tip at restaurants (81%), but for services like a taxi ride or getting a drink at the bar, expectations are mixed.

Around 43% of people always tip their taxi or rideshare driver and 53% tip bartenders. However, only 7% always tip at fast-casual restaurants.

3. Suggested tipping amounts are making people angry

Giving a tip feels less authentic when a register or receipt prompts you to give a specific amount. In fact, 40% of people oppose suggested tipping amounts.

Opposition is heavier from older adults, as 47% of those 65 and up oppose or strongly oppose a suggested tip amount. Younger folks ages 18-29 are more divided, with just 33% opposed. In fact, 31% in this age group actually favor tip suggestions.

4. Automatic tipping charges make people even angrier

When automatic tipping charges show up on the bill, people aren’t happy about it. According to Pew Research, 72% of people oppose businesses including an automatic service charge or tip on the bill.

This shouldn’t come as a surprise, as a vast majority of people (95%) state that the quality of the service is a factor in how much they tip. An automatic gratuity eliminates the customer’s ability to reward stellar service or to punish subpar work.

5. Tipping is increasingly seen as an obligation rather than a choice

Older generations are more likely to see tipping as optional, whereas younger folks see it more as an obligation — a clear indicator that the perception of tipping has changed over the years.

For example, 29% of adults 65 and older state that tipping is a choice. That compares to 15% of adults aged 18-29 who hold the same view.

Around 24% of the 65 and older crowd see tipping as an obligation, but 38% of those 18-29 see it this way.

6. It’s unclear how much to tip

It’s often hard to know how much of a tip is socially appropriate. In the 1920s, a 10% tip was expected for a meal in a first-class hotel. In current etiquette and personal finance publications, you will see rates of anywhere from 15% to 25% for a meal at a sit-down restaurant.

According to Pew Research, 15% is the most common rate for a restaurant tip (37% of survey respondents), but tipping rates were all over the board with the majority (71% of respondents) falling between a 15% and 20% tip.

7. There is social pressure in tipping situations

While it’s not as strong of a factor as the quality of the service, social pressure is a strong factor in tipping.

In the survey, 23% said social pressure to tip is a major factor in both whether they give a tip and how much, and 30% stated it was a minor factor.

Bottom line

Navigating the shifting landscape of tipping can be a challenge, but understanding the latest trends can help you make informed decisions on whether to tip.

As tipping becomes more prevalent in various service-based businesses, remember to budget for the tip before you buy so you don’t end up overspending. By doing so, you can get ahead financially while still showing appreciation for great service.

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