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People are a little bit stingier in barber chairs and Ubers than they were just a few years ago.
The shares of adults who say they always tip their hair stylists, servers at sit-down restaurants and food delivery people have each fallen 8 percentage points since 2021, according to a Bankrate survey released Wednesday. That rate slipped 7 percentage points for taxi and ride-hail drivers over the same period.
Three years ago, the economy was reopening from the pandemic and inflation was higher than it is now, but so was concern for front-line workers.
At the time, three-quarters of consumers reported always tipping restaurant servers, but today just two-thirds do. Despite modest upticks since last year, barely more than half of people now count themselves reliable tippers of hairdressers (55%) and food delivery drivers (51%), while only 41% say the same when it comes to ordering a ride.
The survey reflects Americans’ growing ease bypassing ubiquitous tipping prompts, from coffeeshops to airport terminals in the post-Covid economy, especially as sticker prices have risen. While consumer spending has held remarkably steady, many households are feeling the squeeze from persistent inflation and tightening their belts accordingly. Some of that newfound caution may be factoring into when, where and how much people tip.
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I’m a generous tipper at sit down restaurants, but draw the line at places where I’m grabbing a prepackaged sandwich and drink and being asked to tip the employee to literally ring up the items at the cash register. I wonder if the expansion of this practice is turning people off of tipping even when it’s warranted, hence these statistics
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Yeah. The blurbs examples are places you really need to tip. They are providing a direct service to you. But pretty much every digital pay interface is asking for tips now. And a lot of them aren’t even offering 15%. They start at 18% and go up. It is really souring me on going out at all.
Pretty much every sit-down restaurant now has tips calculated on the bill, and 15% is never one of the calculations. It’s typically 18%, 20%, and 22%, but I’ve seen them start higher.
Is this due to the same machines? Since it can differ, I assume it’s the owner who chooses to make it higher.
It depends on what payment thing they use. Most places use a third-party payment POS and stick with default settings.
The blurbs examples are places you really need to tip. They are providing a direct service to you.
Do you really not realize how ridiculous this sounds?
Yes. But there is no other alternative in America. If you stiff servers, they get hurt. If enough people do it, they quit and your favorite places die. You can encourage places that don’t allow tipping and pay a living wage but those are so rare as to be pointless.
Only assholes refuse to tip for service in America.
To be clear, it’s never warranted. It’s just some cultures that have normalized the practice for certain services. Companies should always fully pay their employees. Full stop.
Not true. It depends on the job and the state. NY for example, has a tip allowance of $5 per hour. That means establishments can pay their servers $10 per hour and still meet minimum wage law, because the staff is expected to make at least $5 per hour in tips.
While I agree that employers should pay their staff well, it’s standard practice for servers in NY to be underpaid and rely on tips as part of their income.
All of that also being known as…normalization.
That’s fair. I thought you were implying societal normalization by identifying cultures rather than governments. I see how this would be considered systemic normalization.
Gotta love corpo news.
have made some people stingier
They’re no longer appreciating service industry workers
Shut the fuck up and pay them a living wage you animals. Don’t try and continue pitting individuals against each other. “Blame the consumer for everything” is so played out at this point.
The reality is that many of these jobs rely on tips. If they were to “pay them a living wage” then the cost of the service would just go up.
Don’t get me wrong, I want tipping to go away, and it’s gotten absurd where people are asking for tips now. But it’s absolutely stingy to not tip in these places where traditionally they would be tipped. If you don’t want to tip, don’t buy their services. It should be a recognized part of the cost: you just think it should be made official, some think it should be based on the quality of service they received.
The cost would not increase. That is not how supply and demand works.
It is extremely unlikely this has not been explained to you before.
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I agree. Right now with tipping the true cost is obscured. If you take away tipping, the services would just charge more.
Your response is to cite an article proving my point and not understand that?
My article certainly does not prove your point. It shows that when companies replaced tipping with high wages, they had to raise the cost of their goods/services. Which is exactly what I said.
No. It says when they raised their prices according to something other than supply and demand people stopped buying from them.
Because prices are controlled by supply and demand. Not costs.
The fact that they also don’t understand that doesn’t mean you do.
When entrees are all up in the 30s versus in the 20s, it doesn’t matter if [customers] know that you are gratuity-inclusive.
I tip 10-15%, how are prices so much higher that then jump into the 30s for a meal? Most of my meals our, tip included, don’t hit the $30 threshold. I think that their prices, even accounting for tips included, were off.
“I think a lot of people don’t see the system as being broken, or anything. And a lot of people love tipping,” he observed. “They feel some kind of power.”
He thinks people like tipping because they have power? That’s kind of fucked.
They spend a bunch of time saying that the locations they included tips in payed $5-6 less per hour. How can they even say they ran a location with tips included if they didn’t even match the tipped wages? They overcharged for food and still didn’t pay the staff enough. I’d say that’s a lot of mismanagement rather than a failure of a no-tipping restaurant.
Here’s another core concept that places don’t seem to understand, if your business cannot make it without underpaying staff then you shouldn’t be in business. Someone else who can manage it will fill your gap in the market or the market will correct itself.
The cost of the service includes the tip if a tip is expected. The cost would stay the same if you stopped tipping and the establishment raised sticker prices to compensate.
If you count the tip as “part of the service” yes I agree that the price would stay the same. But the way I’m saying it is that there is the charge for service/goods, and then there is the tip. If we get rid of tipping, in favor of high wages, the service charge goes up.
Good. The cost should go up, because that’s what it costs the business to run if they pay an actual living wage.
I don’t think I’ve ever seen this written about so -
The reason these tipping prompts are so egregiously inescapable now is that those point of sales systems are handed out by Clover and the like when the business starts using them for POS and inventory and credit card processing.
For each CC transaction, the business pays something like 2-3% of the transaction and so the CC processor becomes incentivized to make that transaction amount higher. That’s how we got here. You’re being guilted into tipping a shitty tech company.
Carry cash. Pay cash whenever possible. That’s how you avoid that screen.
Is clover getting money for cc transactions? I thought it was the cc companies charging that fee.
Point of sale companies like Clover charge a fee and the credit card company gets a cut of that. The rest is for the point of sale’s services.
Credit Card companies (ie MasterCard or Visa) typically have a flat per transaction fee that is very small (like fractional cent small). The processors are the ones that take the percentage cut (PoS and your bank). It’s been a bit since the last time I looked into it, so things could be a bit different, but I would be surprised if it was.
Clover or whoever also gets money for letting whoever use their system. They get an upfront fee then a percent of sales.
These used to be separate things, but now most of the older POS systems have been bought by the processors or, with the “newer” systems, were in the business of processing from the get go. It’s all very incestuous.
No
From Germany, wholeheartedly, fuck off with your POS terminal tip prompts. I simply won’t.
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STOP TIPPING. The whole world doesn’t tip, it’s a strange and stupid US thing. Just stop tipping please!
Also, while you’re stopping dumb shit like tipping, may as well switch to the metric system as part of the integration!
https://media.tenor.com/D8tqN5Dc45cAAAAM/puffer-fish-join-us.gif
to embed your gif in your comment. Important is the exclamation mark at the start, which is what distinguishes it from a regular hyperlink.TIL! Good bot.
Thanks, not much of a bot though :p
Haha ooops sorry! :) good human!
Germany does tip sometimes. But mostly we round up to the next thing that feels right. For me it is usually between 1-5€, but I never tip a percentage or use the tip option on a payment terminal. Sometimes I just don’t tip. It is never a problem. It is a bonus not a necessity here.
This should be the next “movement” the internet gets behind. Everyone stops tipping, and watch people freak out.
And then, after a bit of confusion, tipping will end and waiters will get paid the right amount – no tipping needed
When they flip that screen, I cringe. US tip culture sucks.
This is the worst I’ve personally encountered
Shit like this is a good way to prevent me from returning. I don’t want to feel bad about giving someone money I didn’t need to and if I’m pushing the lowest recommended amount it feels sad.
Returning? I wouldn’t even be completing that order.
I think a lot of these “cab companies” use the tips to pay the drivers now and take more for themselves.
Other > zero
And there is a service fee!
I went to get blood lab work done today. When I went to pay the kiosk asked for a tip.
It happened to me at the urologist. They were taking the piss!
This has to be the USA right?
Yup
I imagine it’s just built in to the POS software they use, which is probably generic. Doesn’t really make that better, but
Anyone else notice the “essential workers” never got that minimum wage increase?
I get republicans not supporting it, but the moderate Dems not fighting for them is going to hurt in November…
Voters know Republicans obstruct progress, but they need to see that Dems are at least willing to have the fight.
Where I live they got it. While it isn’t law, the local fast food is all starting at $16/hour or more.
In California they got it. Fast food is $20 an hour to start.
…
I mean, wages can go down, and will go down when there’s a larger labor pool.
Which is why we should have taken advantage of the small labor pool during COVID to raise minimum wage.
We had a chance to raise it while workers have leverage, but republicans will always oppose it and moderate Dems didn’t push for it, so nothing happened.
That’s wildly considered the biggest negative of moderate Dems, they don’t act when we have the leverage to get things done. They tell us to be happy with temporary things we can lose tomorrow, like how they refused to modify Roe v Wade while we had the numbers to codify it, now it’s gone.
They don’t actually want to fight for us. They’re controlled opposition to make sure when we do have the opportunity/leverage to fix shit, we waste that time “looking into” if we should really fix it. Then when the opportunity passes, they say they tried.
But they didn’t.
I’ll tip my waiter/waitress. I refuse to tip a PoS device. I have no shame selecting the “No tip” button on those things.
If everyone stopped tipping at the same time, say labor day, then businesses would need to properly pay their staff again. As soon as tipping became expected the whole system was fucked.
For me there’s 3 tiers
Takeout/drive thru food of every kind? No tip. If it’s labeled fast food and I have to drive to you to get it, you can pry that shit from my cold dead heart.
Family owned non-chain restaurants. That’s a tip. These people out here trying their best against a McDonald’s franchisee. Easily worth a few extra.
Delivery is where I tip, they put extra wear on a car and had to put up with the American public on roads between here and the store. That’s worth the extra $5-10 Dollars. Especially if it’s raining/almost midnight.
Pretty much the same, delivery I tip based on how much stuff, how difficult, or bad weather is getting it to me. NOT on the item cost. It’s not any harder for the delivery person to deliver sushi than it is a breakfast sandwich.
I don’t know about hairdressers and drivers, but many servers are legally paid less than minimum wage because they are expected to make up the difference in tips.
So this is essentially people being fucked over by not being paid enough fucking over other people who aren’t being paid enough. And if you object to them not being paid enough, the solution isn’t to not tip them, it’s to not go to the restaurant.
They are supposed to be paid the difference if tips plus base pay don’t add up to minimum wage. But I’m guessing a lot of places don’t do it.
If you aren’t making up the difference, you probably aren’t going to last long anyway.
The minimum wage for tip workers is often lower in most states then minimum wage for non-tipped workers.
New York is the only state that I know of that has a minimum wage equity law where tipped workers have to be paid the same minimum wage as anyone else after tips, and if they aren’t, the employer has to make up the difference.
California has, for a while now, required that tipped workers be paid the same minimum wage as anyone else, period. Tips are extras on top of minimum wage.
No, that’s a Federal requirement, too. It only requires them to be brought up to the $7.25/hour Federal minimum wage so it’s pretty useless, but it exists.
Interesting. I didn’t actually know that.
In Oregon tipped employees are required to be paid the state minimum wage. Tips are considered extra on top of that. Seems to be an exception though unfortunately.
California as well. Tipped workers make the service industry minimum wage, which is actually higher than the state or city minimum wages, so they make $20 an hour plus tips. Which means that they are barely scraping by.
% based tips are bullshit and always have been. And moving the scale up to 18,20,22 is insane.
Especially because a 15% tip is almost twice as good as it was 10 years ago due to rising food costs
Yes! The raise is already built in.
Pizza Hut prompted me for a (minimum) 18% tip on a take out order. I could see tipping for takeout if it’s a large, complicated order, but this was not. 18% is for standard table service.
i stopped tipping when i was double charged for the tip included.
i tried keeping track of each POS that included gratuity but i can only get burned so many times before i stop using that stove altogether.
