If you think that tip request screens are appearing in strange places, you are not alone.
Nearly 3 in 4 people think tipping culture has gotten out of control and more than half think businesses are replacing employee salaries with customer tips, according to a survey conducted by WalletHub.
The survey also found that 78% of respondents believed that automatic service charges should be banned and that half of respondents left tips due to social pressure.
“It is becoming an issue and should this feeling of tip burnout reach a crescendo, there could be negative outcomes for individuals who rely on tips as their primary source of income,” Cortney Norris, Assistant Professor of Hospitality and Tourism Management at Oklahoma State University, told WalletHub. “People just get fed up and stop tipping altogether.”
Stats show people tired of tipping
In 2023 USA TODAY Blueprint conducted a survey on tipping that found that tipping culture may be hitting a tipping point.
63% of respondents said that too many places are asking for tips, and 48% said they’re tired of being asked to tip.
The September survey found that 52% of respondents were tipping more while 10% were tipping less.
“Businesses should increase wages so staff members do not always think that tipping or getting higher tips is the best way of making money in restaurants and bars,” Muzzo Uysal, Professor of Hospitality and Tourism Management at the Isenberg School of Management – University of Massachusetts, Amherst, told WalletHub.
California is set to implement a law that increases the minimum wage for fast food restaurants that have more than 60 locations nationwide.
“Tipped workers in states that eliminated the subminimum wage enjoy higher earnings, face less harassment on the job, and are less likely to live in poverty,” according to Human Rights Watch.
