Technology around how consumers pay has changed over the past few years, as more businesses have adapted to point-of-sale technology that encourages tipping after an order. Credit: IStock/Credit:lechatnoir

Media Contact: Javier Rojas, javier.rojas@csun.edu,  (818) 677-2130

Most Americans feel like they’re being asked to tip now more than ever and many aren’t pleased.

Businesses that never seemed to ask for a tip before — like grocery stores, self-checkout machines and fast-food restaurants — are now asking for one these days. All of this has led to “tipping fatigue” among consumers who feel that what was once mostly part of dining etiquette is now part of their daily transactions, said California State University, Northridge marketing professor Nora Moran.

Moran traced the change back to the early days of the COVID-19 pandemic, when many businesses were struggling and people began tipping more than usual to support essential workers at a time of crisis. However, many of these practices did not go away, she said.

“During the pandemic, it became normal to tip more because people realized the value that essential workers have and, of course, the economic situation was different,” Moran said. ” While tipping has always been a way to supplement service worker income, it just opened the floodgates. It suddenly became more common to ask for tips in new contexts.”

According to a 2023 Pew Research survey of nearly 12,000 adults in the U.S., about 72% say they are being asked to tip service workers more frequently than in the past.

Technology around how consumers pay has also changed over the past few years, as more businesses have adapted to point-of-sale technology that encourages tipping after an order. This has had a tremendous effect in how consumers approach tipping, including guilt when asked, Moran said.

“Point-of-sale systems have been implemented by many companies. Since most people pay with cards, these systems are easy, fast and efficient,” Morand said. “However, they often give consumers an option to tip, and people may feel pressured or confused as to why they are being asked to tip in new situations.”

Coupled with inflation and stagnant wages, Moran said there is expected “tension” when it comes to asking people to tip more often than before.

“I think that’s a recent trend we’ve seen with tipping; where all of a sudden you’re being asked to give more. People don’t like being surprised like that,” Moran said. “Especially when prices for many products and services feel high.”

On the other hand, some consumers may opt to tip more to help workers who often rely on tips to supplement their wages.

“There could be a misperception going on at times,” Moran said. “Some consumers may think ‘these workers are getting so many tips now and they’re making so much.’ That’s not necessarily correct, Others understand that these workers are doing a service, and often they are paid very little.”

As the conversation on tipping has evolved over the past few years, Moran said, some consumers have become more conscious of the people behind counters and the ones taking orders at their favorite businesses.

“This is still an opportunity to educate people about the economic realities that service workers are facing,” Moran said. “It may be a dollar here and there, but tips do impact the financial welfare of many people. Hopefully, conversations around tipping norms can draw attention to these bigger issues and initiate discussions on how to address those issues in a fair manner.”

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Media Contact: javier.rojas@csun.edu - (818) 677-2497

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