The pressure to tip has increased in various service encounters, including traditional service industries and app-based services like ride-share and delivery apps, leading to a phenomenon known as “guilt tipping.” This pressure is exacerbated by payment prompts with pre-determined tip options ranging from 15% to 35% for each transaction. Despite this, customers are not obligated to tip and should feel comfortable saying no when they choose not to. A tip jar may be a more practical alternative for those who want to express gratitude without feeling pressured to tip.
With inflation, shrinkflation, and tipflation squeezing consumers at every turn, many individuals feel obligated to tip out of guilt, according to Alex Skijus, CEO and founder of True Life Wealth Management. Skijus advises consumers to consider tipping as a way to express gratitude, but not at every point of sale, even when prompted. By sticking to one’s guns and tipping only when necessary, consumers can encourage business owners to scale back on suggested tip amounts or eliminate tip prompts altogether, ultimately allowing for more genuine and meaningful tipping experiences.
According to a recent restaurant trends report by Toast, tipping at full-service and quick-service restaurants has declined in the past five years. Guests at full-service restaurants left an average tip of 19.4% on credit card or digital payments, down from 19.5% in 2018, while tips at quick-service restaurants fell to 16% from 16.6%. Additionally, tipping behavior can vary depending on the day of the week, with guests tending to be more generous towards the end of the week, specifically on Thursdays. The report suggests that people may be more hesitant to tip on Sundays, leading to lower overall tipping rates compared to other days.
The fear of being ostracized may prevent some consumers from refusing to tip in situations where they feel pressured to do so. However, individuals are encouraged to stick to their principles and tip only when they feel compelled to express gratitude. By doing so, consumers can influence businesses to reconsider their tipping practices and provide more transparent and fair experiences for both customers and employees. Ultimately, the decision to tip should be a personal choice rather than one made out of obligation or guilt.
Overall, the tipping culture has evolved to encompass a wide range of service encounters, from traditional to app-based services. While some customers may feel pressured to tip, it is important to remember that tipping is not mandatory, and individuals should feel comfortable making their own decisions about when and how much to tip. By being mindful of tipping practices and choosing to tip selectively, consumers can help shape a more positive and authentic tipping experience for themselves and others.
