Two-Thirds of people have a negative view about tipping, as Americans are doing it less often.
A recent report by Bankrate reveals a trend in tipping habits among Americans. The study shows that the practice has seen a steady decline over the past few years.
Two-thirds of Americans express a negative view about the practice. The survey highlights various reasons for this shift, including the belief that businesses should pay their employees better, annoyance towards pre-entered tip screens, and a perception that tipping culture has become excessive.
Has the tipping decline only affected workers in restaurants?
77% of Americans always tipped servers at sit-down restaurants, but this figure has dropped to 65% in 2023. Similar declines can be observed in other sectors, such as hair stylists/barbers, food delivery, taxi/rideshare drivers, hotel housekeepers, coffee shop baristas, and home services/repair workers. The data indicates a general trend of decreasing the practice among Americans.
Who are the worst tippers?
Gen Zers and millennials, along with men, are identified as the worst tippers. Only 35% of Gen Zers and 50% of millennials always spiff servers at sit-down restaurants, compared to 80% of Gen Xers and 83% of baby boomers. Moreover, 70% of women consistently tip, while only 60% of men do so.
Many Americans feel annoyed by the prevalence of pre-entered tip screens. 32% expressing their discontent in regard to automatic benefit. About 30% believe that the culture has become out of control, with older generations and higher earners more likely to hold this sentiment.
Additionally, 41% of respondents feel that businesses should pay their employees better, and 16% would be willing to pay higher prices to eliminate tipping altogether.
The study reflects a changing landscape in the way Americans approach rewarding servers. Factors such as economic unease, confusion about who and how much to tip, and evolving technology contribute to this shift. Although tipping remains a significant aspect of American society, it is evident that habits and attitudes are evolving, and businesses may need to adapt to these changing dynamics.
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