The Truth About Tipping: How to Navigate the Pressure to Tip Everywhere
Are you feeling the pressure to tip everywhere these days? From traditional service encounters to app-based services, ride-share, and delivery apps, tipping seems to be expected in almost every transaction. But are you truly obligated to tip in every situation?
According to Tim Self, an assistant professor of hospitality at Austin Peay State University, the perception that tipping is everywhere is on the rise. This phenomenon, now known as “guilt tipping,” has become increasingly prevalent over the past year, as highlighted in NerdWallet’s consumer budgeting report.
‘Guilt tipping’ is on the rise
Payment prompts with predetermined tip options ranging from 15% to 35% can trigger feelings of guilt and obligation when making a transaction. However, as Self points out, you are not obligated to tip in every scenario. It ultimately comes down to your choice as a consumer. Self suggests that more people are becoming comfortable saying “no” to tipping and that tip jars may be a more appropriate way to express gratitude.
With inflation, shrinkflation, and tipflation squeezing consumers at every turn, it’s no wonder that many individuals are feeling overwhelmed by the pressure to tip. Alex Skijus, CEO and founder of True Life Wealth Management, advises consumers to tip as a way to express gratitude, but not to feel obligated to tip at every point of sale, especially when prompted. By standing firm in your decision not to tip, you may encourage business owners to reconsider their tipping practices.
According to Toast’s most recent restaurant trends report, tipping at full-service and quick-service restaurants has declined in recent years. Guests at full-service restaurants are now tipping an average of 19.4%, down from 19.5% in 2018, while quick-service restaurant tips have decreased to 16% from 16.6%. Interestingly, tipping behavior also varies by day, with guests tending to be more generous towards the end of the week.
At Extreme Investor Network, we understand the challenges faced by consumers in today’s tipping culture. Our expert insights and personalized tips will help you navigate the pressure to tip everywhere and make informed decisions about when and how much to tip.
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