30% of Americans say ‘tipping culture is out of control'

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.

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.