Why is tipping so prominent in the US? A new study shows Americans have had enough

Tipping, a cornerstone of American service industry etiquette, seems to be on shaky ground. A recent CouponBirds survey reveals a growing disconnect between what customers expect and what service workers desire. While tipping remains prevalent, both sides seem to be questioning the system’s fairness and efficiency.

The survey paints a clear picture of consumer unease. A staggering 76.1% of repsondents believe tipping culture has gone too far, up from 66% last year. This sentiment translates into action, with a significant number of respondents admitting to “guilt tipping” – tipping solely to avoid awkward social situations (65.6%) or confrontation (63.1%). The confusion extends to tipping practices, with nearly half (47.3%) reporting feeling pressured to tip at automated kiosks and convenience stores (45.5%), situations where tipping traditionally hasn’t been expected.

“The findings from our study demonstrate that the majority of Americans have had enough of tipping culture and think that the expectation of tipping has gone too far,” said Andy Cooper, Financial Analyst at CouponBirds.

Interestingly, service workers themselves seem to echo these concerns. 51% indicated a preference for a fixed living wage with no tipping, suggesting a desire for financial stability and predictability. This aligns with the overwhelming majority (84.1%) of Americans who believe the minimum wage for service jobs should be increased. In states like Florida, tipped workers actually have a lower minimum wage compared to other workers.

“The rising cost of living in the US is likely one of the reasons for a change in attitudes towards tipping from both restaurant customers and service workers,” Cooper continued. “For service workers, stagnant wages mean they rely on tips from customers who may be reluctant to give one, with many feeling that a pay increase from their employer would benefit them more.”

What are the problems with tipping?

The current system creates an uneven playing field. Tips can vary greatly depending on factors beyond an employee’s control, like customer demographics or menu prices. This results in income insecurity. Additionally, the pressure to “guilt tip” creates an uncomfortable dynamic for both customers and service workers.

There are potential solutions. Raising the minimum wage for service jobs, as a majority of Americans favour, could address income concerns and remove the reliance on tips. Alternatively, some restaurants are experimenting with abolishing tipping altogether, incorporating a service charge into the bill to ensure a more predictable income for staff.