What is tipping fatigue? Americans are fed up with service charges, gratuities and other add-ons
Heading into the holiday season, some Americans may not be feeling generous when giving tips. Constantly being asked to add gratuities is taking its toll.
Tipping has long been a part of American culture, and has become a deeply ingrained social norm since it began in the country more than a hundred years ago. These days, more establishments are giving customers the option to tip, from fast-food restaurants to ice cream stores and even some department stores. It appears that even more businesses are dumping the responsibility of paying decent wages onto their customers.
Screens replace the tipping jar
Technology has contributed to this ubiquity; with digital payment becoming widely available, these shops conveniently use screens to ask clients if they want to leave a tip.
While consumers are used to tipping waiters, salon stylists, and taxi drivers, places where purchases are small and service is minimal (or even non-existent) are offering choices to tip between 15% and 25% on tablets and self-service kiosks.
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The effect of the pandemic on tipping
Covid-19 had a hand in evolving tipping habits. At the beginning and at the height of the pandemic, service workers were considered to be putting their health and life at risk to be able to cater to customers, so people tipped more heavily to show their appreciation.
The situation has changed: the pandemic has reached manageable levels and the dangers are not as great for workers, but businesses continue to expect increased tips.
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What is tipping fatigue? Americans are fed up with service charges, gratuities and other add-ons
Customers have seemed to tire of all the gratuities they are being asked to fork over, and are now tipping less as a result of “tip fatigue” . According to Toast, a restaurant management software company, amounts are down compared to 2021 levels.
The annual tipping survey of personal finance website Bankrate echoes these results, showing that the percentage of customers giving tips has been going down over the past few years. This year 65% of American adults were found to always tip their server at sit-down restaurants, down from 73% last year, 75% in 2021, and 77% in 2019.
One factor is inflation, which makes customers more hesitant to shell out even more cash on top of higher-priced goods.
Another is the increased number of establishments that are offering the tipping option, also known as “tip creep”. Seeing so many screens asking for a tip, even in self-service locations, is overwhelming and turning off clients from adding on a gratuity.