The Blubber

The customary practice of tipping has traditionally been associated with sit-down restaurants, food delivery, salons, and similar scenarios. However, in recent years, and especially since the pandemic, more Americans are feeling the pressure to tip in situations like point-of-sale transactions and at drive-thrus. The idea of tipping even extended to landlords earlier this year, sparking controversy.

According to a recent survey conducted by consumer financial services company Bankrate, 30 percent of Americans believe that tipping culture has become "out of control," which is not surprising given the circumstances.

In the past, a tip jar was commonly found at most casual businesses. However, 32 percent of respondents expressed annoyance with pre-entered tip screens, which obligate consumers to make an effort not to tip.

Lyn James, the owner of a coffee shop in Bowman, ND, explained to CNBC that she chose not to include a tip screen when implementing her store's contactless point-of-sale system. She mentioned that most people still tip around a dollar for a latte regardless. James believes that the prompt to tip actually irritates most customers, and when they are satisfied with their experience, they tend to be generous with their tips.

Danny Meyer, the founder of Shake Shack, is known for abandoning tipping in 2015 in favor of a "Hospitality Included" compensation model, only to revert to traditional tipping during the pandemic. He also shared his perspective on what he refers to as "guilt tipping" in an interview on CNBC's Squawk Box. While Meyer believes that employees should receive fair wages and that tipping is appropriate for good service, he acknowledges that there are situations where tipping is unnecessary. He explained that in instances where it is merely a transaction, such as when picking up food, and there is no additional service provided, there is no obligation to tip whatsoever.