Is Tipping at a Tipping Point?

The Expert:

The Issue:

tip·ping (noun)
Giving a small sum of money as a reward for performing a service, such as serving in a restaurant.
Source: Oxford Languages

The Take:

“Tipping has existed for decades, especially in the U.S., especially in restaurants. Now, it’s becoming an issue for consumers. Why?

For one, the economy. As meal prices go up, so does the cost to tip. Consumers feel pinched.

And then there’s the development of technology alongside changing business practices. Due in part to technology, tipping is now an option in more situations: in rideshare apps and at point of sales (POS) systems like the cash register at a fast-food restaurant. The technology suggests a tip, and you can opt out or add a custom tip, but that takes effort to go against the suggested standard. And technology has allowed for the scale of tipping to creep up. A standard tip used to be 15%. You now see suggested tips at the bottom of your bill — maybe the lowest is 20%. This takes agency away from the consumer.

As technology and AI get more customer information, it’s easier for these systems to get more personalized and for tipping to pop up in more places. So perhaps your scale for tipping options will be higher than mine. Or if I don’t tip, perhaps I’ll see a lower scale to try to get me to start tipping. The format will be more personalized. There is increasing customer resentment about all of this.”

One Final Tip on Tipping:

“The power still lies with the consumer: You must take some time and decide when and how you want to tip. For example, ‘I will tip at restaurants but at POS systems, I’ll say no.’ Once a categorical decision is made, there is less stress and confusion, and perhaps less guilt when you choose not to tip.”