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Why Tipping Is So Out Of Control In The U.S.
- Published on Jun 8, 2023 veröffentlicht
- Tipping in the United States is on the rise and experts are calling it tipflation. In the fourth quarter of 2022, the number of tips provided at full-service restaurants grew by 17% from the fourth quarter of 2021. Meanwhile the tip frequency at quick-service restaurants rose 16% during the same time period. Experts say that's because of the newer and sleeker-looking Point-of-Sale, or POS, systems by tech companies like Square, Toast and Clover, who also have increased their sales as a result. The pressure to tip well in front of the tip receiver, before a service is completed, or in front of other customers makes a difference for many. After customers swipe their credit card, they're typically prompted with three large tipping options on a screen. While businesses can opt out of the tipping feature, most aren't. In fact, even Starbucks started prompting customers for tips in stores in September 2022. With Americans being pressured to tip higher percentages and for more services, the question is, where is the tipping point?
00:00 - Introduction
02:25 - Why we tip
04:09 - Tipping in 2023
05:45 - Big Tech
09:14 - Tipping point
Produced by: Emily Lorsch
Edited by: Jacob Harrell
Senior Managing Producer: Tala Hadavi
Graphics by: Midnight Snacks
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Why Tipping Is So Out Of Control In The U.S.
Comments • 21 376
I think we should be like other countries, get rid of tips, pay employees how much they should be paid, and price the food accordingly
You can think that all you want but it’s not gonna stop businesses from doing it
I was thinking the same thing.
Just don't tip, who cares what people think
I bet servers and bartenders would disagree
"You're being guilted into tipping on something that's not a service. It's someone simply doing their job." This is absolutely true. I hate that companies are prompting customers for a tip when you went to the physical location and got what you ordered. It's not a tip when you are doing what you are hired to do. And as long as companies are able to guilt customers to foot the bill to cover their employees living, nothing will change.
this is what I have been saying. Like making a coffee is the job you get paid to do, you aren't waiting on me for an 1-2 hours like at a restaurant.
Many stand-alone full service businesses pay less than minimum wage, and the employees count on tips to make the difference in pay.
Why not ask the employees the next time you go to any restaurant before you blanket your response on tipping.
@Robert Smith if they pay less then minimum wage,you can sue them when you leave the job and ask them repay it to you,that is law
get mad at the company/owner, not the employees who need the tips or else they'd need a 3rd job to pay rent.
But waiting on costumers is also what waitstaff is hired to do. They should be paid for it.
Tipping is designed to take the frustration worker have for their employer, who does not pay them fairly, and redirect it to the customer.
The employer is spared of blame, and the problem now becomes how generous the customer is.
Exactly. The rich makes the poors fight each other instead of him/her.
@Tsim Which also makes me (as a customer want to tip) because I'm afraid if I don't they'll spit in my food or something. They do a great job of turning us against each other.
I am also disgusted by businesses that charge a service fee (like delivery) and then ask for tips for that same service a second time.
Right?! So annoying. I just type zero lol
Like Amazon grocery delivery 🤬
You should be disgusted that their employees literally survive off of tips because they are being so inadequately paid
@zac langdon Nobody cares about that, they're just upset they're getting guilted by pixels and don't have a backbone to say no, so they're mad online.
I am a delivery driver and the min wage for us is 4.25. If you getting hot food delivered/served you NEED to be tipping. We actually lose money on runs if you dont tip. The delivery fee is NOT something we get to keep (it goes to the employer). You can not afford to get things delivered if you can't afford to tip. It is a luxury. Just go pick it up at the restaurant yourself if you do not want to tip.
As an Englishman visiting the US I have always resented paying more than 10% as a tip, particularly on a large bill when the level of service is no different than for a small bill (ie. expensive steak against a cheap burger). I often need to ask someone nearby what is the "expected" tip and feel shocked when they say 20%. Staff should be paid a better wage. The usual excuse for tips is "you get better service". In my experience, all you get is the name of the server and a cheesy smile. The food is exactly the same. Sadly, the US habit of over-tipping has spread worldwide into countries which never expected any tips until tourists introduced them. Tipping should be discretionary, not obligatory.
As an American, I agree completely.
Here in China, tipping is offensive. It is like giving money to a beggar. One does not treat a server like that. Tipping exists in some tourist places, but it is rare. There are also no sneaky rules allowing business owners to pay less than minimum wage. The tipping for everything culture in America makes me feel uncomfortable.
@🐻 Mr. Patrick ok,communist china should not compare with the US. You re the LAST to speak on money and workers(along with the other communist countries)
You don t even get paid well😂
@alex_the_redhead Your information is out of date. Wages here have been rising steadily over the last couple decades and above inflation. Prices for rent, basic foods and clothing are much lower than in America. (First tier cities can be an exception.) I have lived in America and now thank God to be living here instead.
Although if you don't mind please stop patrolling our coastline with your warships. Do you expect a tip?
What's even more horrifying is when you realize that some the tips you are giving aren't even going to the employees. When I worked in a cafe, most of the tips that were left in a tip jar -- what would be the modern day tablet tip -- were just pocketed by the employer. In theory, the jar was supposed to be divided equally between the employees, but the tip jar would be emptied at the end of the night, and the money would never be given physically or on our paycheques. It just went straight into the business's bank account. Every time I see one of those tablet asking me for a tip, I wonder if any of my tip will even reach the employee who served me.
That's a great place to quit working at.
Truth! I never trust my ‘on tablet tip’ to go to the employees, even if they deserve it.
I trained at a restaurant, worked for two weeks. Same situation you described with tips. I just could not work there because of principal, employees earned those tips. I was supposed to be a hostess
For that reason, when tip, I always tip cash. Much better chance of that worker actually getting the tip. I drove Uber for a bit, and I do know that I got my tips through the app.
What bothers me is that employees would rather get upset at the consumer for not tipping enough rather than being upset at their respective industry for not paying a liveable wage
You truly hit the nail on the head - in spades!!!
We are upset it's too entrenched the restaurant lobby groups crush us at each turn.
This is exactly why companies have shifted to this model. They have shifted the blame of poor wages to the consumer, however it is the company's responsibility to pay their employees, not the consumer.
_IF_ the server did a good job, they would get better tips. I spent *YEARS* in the food-service industry. I've seen the most lazy, nasty servers make huuuuge bucks because customers were shamed into tipping. That needs to change! We need to bring back stiffing for servers who are not prompt, servers who are not courteous and servers who deliver bad food.
You're bothered that people raised in a particular culture expect that culture? Those servers were born and raised in a society that considers those jobs that receive tips. Of course they expect that, they've been seeing it their entire lives. Even before they ever had a job at a restaurant they saw servers getting tips. It's what they were taught to expect.
What bothers ME is all the selfish jerks who want to blame the servers for adapting to the culture they were raised in. Somehow at least 156 other people are self centered enough that they can't empathize with another person. It's always a shame to see people get self righteous while also being completely self centered and oblivious to the problem.
As a Brit who used to love going to America, I won't go anymore because of the tipping culture. I was once told in a bar from a server, who did nothing more than reach in a cooler in front of her and hand me one bottle of beer, this is America, you have to tip. The beer was 2.75 and she expected a dollar for making one arm movement and not moving her feet. That's ridiculous.
I can imagine a curb your enthusiasm situation 😀. Larry David wouldn’t have paid the tip.
I am a student and when I first came to U.S I was shocked at the tipping culture here. In my country tipping is voluntary but here tipping is mandatory. As a student myself, I struggle to make my ends meet and tipping is a luxury for me. A lot of times these factors go unnoticed and no one cares. Employees just expect to get tipped. It is so frustrating.
It’s amazing that you are exploring the planet and it’s diversity. Just embrace it and remember you are the one exposing yourself to different cultures. Have fun ❤
It's not mandatory. You're not going to get arrested or banned from the place.
@Second Adam but they will give you the look of being disgusted. I was touring in the US and apparently visited this restaurant in NYC. When I walked out of the place waiter chased after me and said “oh did I do so bad that you dont want to tip me?” I got pretty shook bc how it is said as optional, it was almost like being forced to do it. I was even more amazed to know that they rely on tipping since their boss are paying them sh** money.
@Martiin Apparently means yes I did visit the restaurant and had the meal there if that was your question. “Apparently” also means that I went there with a friend out of a blue without planning ahead (since I was going on the trip to the US and most of the meals are already paid by the tourist company). We had a free day to roam around the city. If that makes sense to you? I am not a native English speaker so if anything does not make sense feel free to ask
@LunaSam Sure, they can look at me funny, and I can live with that easily. Don't let yourself be pressured by others. Do what you feel like doing, within the law. Simple. I think that's one of the main reasons why US culture got to the point where it is today - people care WAY too much about what others think, and how they are being perceived. It's all flash, no substance. Want to think I'm poor? Go ahead. Want to think I'm cheap? Go ahead. Sounds like a you problem, not mine.
My second job as a college kid was delivering for a Chinese restaurant. Tips were somewhat nice because it was cash in my pocket at the end of the day... But I'd much rather just get a consistent paycheck every other week. It's easier to plan finances around and even makes the job of the host easier! (The host was in charge of adding up tips and paying them out to employees)
As an Australian where we "mostly" pay a real wage, you don't tip a business for providing a service you pay for. You tip good wait staff, but only in cash. Never tip on the electronic transaction as there's no guarantee it'll go to the employees.
One of many reasons my wife and I quit going out several years ago. Now instead of meeting others at a restaurant we have them over for dinner. There isn't any rush to clear the table for the next folks wanting a table and we can control what goes into our food.
That sounds like a very good idea. However I only face the tipping extortion when I travel to the US and then I need to eat out, since I am not at home. Back home here in China there is no tipping culture. Anyone paying their people less than the minimum wage would be in legal trouble.
@🐻 Mr. Patrick One of the reasons that kids today "aspire" to be wait staff here is the upside potential of doubling, tripling or in the finer restaurants and bars six figure incomes. I never thought that going out for a nice diner with my wife would take on the feeling of an elitest event.
@Richard Forward The idea of wait staff with six-figure incomes sounds like an urban legend. I can't contradict you since I don't live there. But from my perspective here in China, it's weird.
@🐻 Mr. Patrick I've encountered it and completely agree with you!
Its literally a way for employers to get out of paying there employees. Passing the responsibility to pay onto the customer.
💯. If I’m going to pay their salary, I want to do their performance review as well. And if I do that…I want a salary too. Don’t ever tip. I haven’t in 25 years.
Totally agree! I'm not getting paid to do some restaurant manager's payroll!
@Bat Boy True. Also, I doubt that all people getting tips are declaring them to the IRS.
@Bat Boy how do you not tip in restaurants without getting arrested? It is a MUST isn't it?
This is what walmart SPARK is doing! most customers dont know walmart doesnt pay the delivery drivers hourly. Sometimes they make workers wait HOURS in the parkinglot unpaid, to only deliver 1 order, for $8-11. They also are 1099- NOT W2 employees!
TIP YOUR DRIVER PLEASE!!!
I agree with the points made in this video and we have the same tip issues here in Canada too. In Japan there is no tipping anywhere and their service industry is probably the best in the world. There people in the service industry are always trying their very best for you all the time and even bowing to you as their customer is very common. Whereas here in Canada and the USA it's worth noting that at the end of the day the person behind the counter is not the one who benefits from the tip you're giving, it's actually the business owner, who can keep the salaries low (and to some extent also keep product prices low) on the assumption that tips will be provided. Tipping often creates tension between the customer and the person behind the counter, and it can often promote BAD service rather than increasing GOOD service, so tipping has actually already gone beyond the tipping point.
It is the same here in China. No tipping and we get great service from restaurant staff.
It's really annoys me that the coffee shop employee gets tipped for doing their job, while someone like a grocery store cashier doesn't. I work in retail and often spend 20 minutes or more with customers helping them get what they need, carrying out items their car, bagging their items at the register, etc, but we're literally not even allowed to take tips even if someone offers. Why is it that some people deserve tips for doing their job while others don't? I don't understand the "service" aspect. Isn't literally everyone working servicing you in some manner?
Side Note: I live in California where legally the employer needs to pay every employee at least minimum wage no matter what, so no employee is relying on tips.
Coffee shop employees literally make your drinks and food... they work for long hours have to deal with constant Karen's. Have to restock the coffee ect... They aren't doing nothing. They are basically the same as waiters except they also cook and make drinks.
@Taco Bell cook?? Using a microwave is not cooking, and btw that is their job. Find a new career if pouring coffee is too much to handle lol.
Thank you for this production. You brought the issue to the surface demonstrating how frequent these request have become. I no longer feel pressured into tipping given how prevalent it is now.
I recently went to a Starbucks drive thru and they had added a tip option. Imagine tipping to pay the employee for doing their job to make my drink. Never going back to Starbucks.
they always do this and I ignore it lol
Literally, sorry but I'm not going to tip just to pick up my drink that's ridiculous
Same with Subway
Why should we tip someone at the drive thru at Starbucks to hand a drink to me!? I reluctantly paid the tip and now I will never go back.
I live in Australia, where tipping is strictly optional, to the point that it's unusual. This makes the tip really MEAN something, while most people just... do their jobs. If they do it badly, they may get fired, but as the job provides a living wage regardless, they know that their time is valued by their employer... so bad service is still pretty rare in my experience, and of course aggro from low tipping is nonexistent.
I agree with this. In my experience here in Canada, where tipping is also out of hand, you often get bad service or a cold shoulder due to not tipping enough rather than good service for tipping.
Business owners paying their workers less than minimum wage and then convincing them the responsability lies on the customer is one history's greatest finesses.
So what? You are not required to tip. Are you a sheep and tip out of fear?
@Answer Man Only tools and bootlickers defend bad business practices.
@Diane IsMyName So, if someone tips are they effectively supporting the business or the employees?
They want to make you think that tipping is for the employee but I feel this is for the employer to excuse themselves from higher wage. It has gotten crazy lately.
I tip everywhere I go, because I want the person keep showing up to work. Don't tip and just get everything from Amazon and don't tip your driver, I guess. Tippers makes the universe turn. Everyone should thank tippers because non tippers are receiving some of the benefits of those tips. Your more likely to get good service or at least a quality worker that just might be doing the job of 2 people due to tips. If you constantly get horrible service, maybe it's easy to see you're a non tipper or you just miserable or maybe just funny looking and they don't want your money anyways, but they provide services in hopes of getting you out of there quickly, so they can get a tipper next. Non tippers lack compassion and generally are bare minimum kind of people, with empty lives and no REAL friends. Who doesn't tip? Wow, no friend of mine, that's for sure.
I felt bad for not tipping my hairdresser because I'm new to tipping and I genuinely didn't realize it was expected. After watching this video, I think I feel a little less bad about it.
I think that besides a sit-down restaurant server, you should only tip if the service is exceptional or if it's a longer service (like a dedicated take-out employee who does everything from taking the orders to prepping and packaging to delivering to cars etc). I hate saying no to small businesses but like a cashier scanning my items shouldn't really need a tip because they're getting paid hourly and they're only dealing with me for less than 5 minutes of their time
This is an example of a takeout order I got a few months ago. Food: $100, service fee: $8.25, taxes $6.25, takeout fee: $3.00, tips: $15, convenience fee (credit card) $3.00. And after all this, they had the nerve to put "additional tips suggestions" for 18%, 20% and 25% at the bottom of the receipt. 🤐
You got $100 worth of food? Wtf that’s a grocery bill
@ianthia In New York City that's appetizers
I would have already clicked the cancel and close buttons
As someone with a lifetime in the retail industry and having used many, many different credit card machines over that lifetime, I fully believe a not-insignificant part of this is because store owners don't realize that asking for a tip is a setting you can (usually) turn off directly on the terminal. Even (*especially*) on the older terminals.
The first time we got a machine that did that out of the box (probably 15 years ago), I called the processor in a panic to get a different model sent out to us. It was embarrassing that customers, in a retail environment, thought they were supposed to tip the cashier. Luckily they explained how to turn it off and to this day I always run my own card first specifically to check for that.
(To be clear, I'm not saying that's the reason for all, or even most of it. Just that it's almost certainly the case in some of the smaller mom n pop places.)
@Martiin I'm not sure what you mean, but if it helps clear it up; I'm not saying they don't realize the machine is asking for tips, I'm saying I don't think they realize they can turn that off.
That's the only thing I can think of that you may have meant by the owners finding out at the end of the month.
@Martiin account summaries?
If you want to avoid being coerced into a higher tip than you think is deserved, then just hit the "no tip" button and tell your server (or salesperson) "I'll leave you a cash tip" (AFTER the service is provided). Just be sure you have some small bills in your purse or wallet. That way, YOU are in control.
I always feel like I'm paying a "Don't spit in my food" fee when I'm asked about a tip before actually getting anything.
I've stopped going to places for this, and have told managers and owners why. If you're demanding a tip for services that have not yet been rendered I don't feel safe about what those services will be.
I like when people order delivery and I know they usually don't tip. because I can take my time. I'm not going out of my way to give you exceptional service. I save that for good customers. I also love when my customers want exact change, because we don't carry change, only paper money. Some people get so angry when they have to tip me 65 cents for bringing them their food
@Nick Wrightsel Thats how tipping works in the rest of the world .We tip for exceptional service and not because the person feels entitled to my money even though they dont work for me.
@Nick Wrightsel It’s important to remember, if you are tipped before the service is provided, you feel entitled and think “I got the tip” and you may still take your time. So it’s not about getting tips first or last, it’s about the entitlement.
And why did you work in a tip based job, if you don’t trust you will get the tip? Pick a higher hourly or yearly job where it’s flat.
Instead of tips, you get bonuses and raises, and promotions - and just like tips, they are based on performance.
I really gets me to hear that some businesses collect the tip. They then share at there discretion. It also went from 10, 15,18 to 20%.
I was recently in the US and I was shocked at how many places you tip. In Europe it is voluntary when I am really satisfied with the work of someone who has done something for me - waiters, craftsmen and so on. Generally a job where someone actually does something for me, spends time on it and does an excellent job. It is welcomed, expected in some places, but not forced. Not tipping if something is only "relatively okay" is quite common.
In the US, tipping is practically mandatory and a tip is given everywhere, more or less regardless of satisfaction. There are three giant buttons: 15, 20 and 25 % on the payment terminal and a tiny "no tip" in the bottom corner. A tip at the hotel reception, a tip at the supermarket at the checkout, a tip for buying a postage stamp to Europe!
I went to NYC on vacation last year around November and in my country we usually pay 15% for great service... when I had a meal at the Red Lobster, I was not asked but forced to a minimum of 28% tipping through this tablet where you could not skip the tipping fee step before paying the check. it felt so ridiculous that I was afraid to go into any well known brand restaurant cause a tip was way more than one of the dishes me and my wife had, the employee wasn't even nice to us or anything, felt he was doing simply what he was asked to in a grumpy manner... I know NYC is really expensive but I never thought I would be Forced to give a grateful gesture for a job well done, which wasn't even.
Thats an illegal unofficial tax now....
More people should actively discuss how ridiculous it is with the employees that offer it 😢
Companies need to be held accountable for unhealthy tipping practices. There's no reason I need to tip at Self Checkouts and pick up orders from the restaurant. Its crazy.
I recently took a holiday to the US and I found the whole tipping thing to be incredibly stressful, so much so that by the end of the holiday I was actively avoiding situations where I would be expected to tip.
Just don't tip. It isn't a right. Many workers don't need tips, but just expect it now.
I avoid holidaying there for this reason. Just the thought of having to tip every time I eat or need a service is stressful.
As someone from the U.S, you are not alone. I feel so pressured to tip even when I am picking my food up. I hate it but it’s the work culture here.
I feel like we should only tip when the person goes above and beyond. Not for doing their job. And that’s speaking as a hairstylist.
So the grocery store?
Hell I live in the US and I actively look to avoid situations where I have to tip too.
As someone who's worked in different restaurants lemme tell you that you should NOT feel bad for pressing No Tip if it's not a sit-down restaurant. Even the workers at some coffee shops don't expect much tips because they're paid hourly, but your servers get paid below minimum wage (in some places) need that tip.
I was in Australia for a month back in 2018, and food was cheap compared to here, and you're also not expected to pay tips. One flat price, easy. If businesses can't make it work over here while paying fair wages, they deserve to go under because they're grossly mismanaged. I suspect a lot of middlemen/distributors are doing a fair amount of price gouging, and more restaurants will have to secure good connections as close to farms as possible to make things work as they should.
This is what I wanted to know. I am now 100% determined not to tip at joints asking me to choose the tip amount prior to even start working on my order.
I personally feel like businesses are using the tip option to see how much customers will pay and will use it to raise the prices. Eventually, it will get so expensive that customers won't tip because the added tip breaks what the customer thinks the product is worth. For example, say it was $3 and with tip and tax it became $6. But the business sees that $6 and raises the actual price to that. Now a tip would make it $8 and that's too much but $6 is ok.
I was in a tea place the other day and decided to add a tip, which I usually don't do because I don't want to participate in the raising of prices. My drinks on the menu were $5 and $6. After I added the tip, the line item prices were raised to $5.75 and $6.75. No separate indicator or line for the tip, the computer just raised the prices of the items. I don't think my cashier got a penny of that money. I decided at that point I'm never tipping on an iPad again.
I live in one of the few states that does not exempt tipped service workers from the minimum wage, and I've never really felt shamed for giving a small tip or no tip at all. I'll always give a couple bucks either for sit in dining or taxi service if I was satisfied with their service, but otherwise don't tip
People love to tell everyone if you can't afford to tip you should stay home. They say you shouldn't be going out and having a good time if you can't afford to tip. I think the same should hold true for the businesses, if they can't afford to pay employee's the bare minimum wage and still be profitable then they SHOULD close up shop.
And everybody wouldn't work there anyway if they got paid 8.25 an hour
I stay home.
I will only tip if they deserve the tip
If they cannot pay their workers properly should not have started the business.They want to guilt trip all the customers into thinking they are doing injustice to the workers if they pay anything less than 20%. Tip is supposed to be paid only if you like the service,a small amount of 5-10% as gratitude.
The worst part about it is that we don’t know to what extent the tips are genuine. It’s the companies asking for tips, but it’s their job to distribute them. There’s no accountability, and reports of tip based wage theft have been on the rise over the past year or so. I stopped tipping on the machines specifically because of that to start, as as they get more aggressive, I go out of my way to circumvent it. Tip based wage theft was common enough when I was a waiter before Square was big, and it’s no doubt worse now.
The HUGE thing I didn't see discussed here is if the tips at these small places on these kiosks are actually making it to the staff at all. It was mentioned several times that businesses see this as a way to make up revenue, but my understanding is that is tips should all be going to the staff and none to the owner.
Tipping is definitely out of control, especially on online checkouts.
But the hotel example at 1:47 made me burst out laughing just for the scale. She's acting like the $10 extra was so offensive when she's paying $528.22 per night, in addition to $436.03 in taxes/fees, in addition to $579 to be able to cancel. That better have been a luxury experience! The $10 is not the part of that bill I would be freaking about lol.
In Australia, we don’t usually have tip as part of the service. So going to the states several years ago was an experience, I asked to tip and was blown out of the water when there was 3 options, 10, 15 and 20%. We have minimum wage here in Australia so I think is better for everyone.
The worst is when the server holds the device in their hand while you're entering the information. It feels more like an interrogation than payment for a service.
They do this at Starbucks and then say, " you look so pretty today!" When I look like a goblin. So many pressure points. All for a cold brew that they only had to pull a tap for.
Ok you bot
Loudly ask so where is the ZERO TIP button?
I actually like that better. Less fraud that way.
I'd present them with a tablet with a recommended 20% tip for being a nice customer. Thank *** I don't live in North America. It's just another product+service price-hike, aka profiteering
Another nightmare are those crazy stores where store owners keep very large tips from credit cards. Then they got sued or reported to the local news.
I reside in the state of Washington, where the minimum wage stands at a noteworthy $15.74 per hour. It's important to note that this rate applies to all individuals working in the restaurant industry, including baristas and others. Despite the mandated minimum wage, it is still customary to provide tips in these establishments. Interestingly, I've recently come across a few restaurants that display tipping options of 20%, 25%, and even 30%. Personally, I prefer to offer a gratuity that results in an even total amount and tend to be more generous when calculating the tip manually, rather than relying on electronic payment devices. As a side anecdote, about two months ago, I decided to tip a cab driver in Vancouver, BC, an amount that exceeded 100% of the fare. Surprisingly, his reaction conveyed a sense of being shortchanged, which left me puzzled by his response.
I've stopped tipping on iPad PoS's like Square and toast entirely since the pandemic caused the recent tip-flation. I thought I was just jaded after seeing tip screens everywhere for people doing the bare minimum at their job; glad to see most Americans are also pretty done with tipping.
I used to be a waiter in my 20's years, so I've been in both positions: attending clients and being attended by another ones. The fact for not tipping is something it doesn't mean you are not comfortable with the food or the quality service. It's just simple something shouldn't be aksed. It's simple to understand. If you (as a waiter or waitress) are smiling (because you are expecting a tip), and suddenly you stop do it once the customer says he/she will not pay for it, everyone around you will note you are not exactly providing a honest service. You can't force anyone pay for tips and it not acceptable either if we are rude for these customers. Nevertheless, in Colombia it's very common that some restaurants charge to you the tip in the invoice even if they don't tell you it's something volunteer. I disagree with that behaviour. Secondly, in some fancy places it seems like it's "mandatory" pay for the tip. It doesn't work either in that way.
I use to be a big tipper until California passed the $15 minimum wage and finally realizing that many businesses use the tip as an excuse to pay less money. So basically what these companies are saying is we will let the consumer pay part of our employee’s salary.
But the biggest eye opening moment for me was this. Why do we have to tip? To get better service? Should an employee give bad service to someone because they didn’t tip? What kind of message are we sending out? I think you should always give 110% at any job you do regardless.
Finally, at what point do we draw the line, Do we tip pilots and flight attendants? Do we tip doctors and their staff? Imagine if a doctors office chose to pay their employees less money and demand that patients give them tips to compensate for the lower pay.
So now I never tip anyone for anything and I found that I still get the same service and have more money in my pocket. If you want a tip, then demand your employer to pay you more not expect me to pay your employer and you for something you should be doing anyway.
I am an American in Paris and I was appalled at the amount of times I was asked to tip in the US and the amount expected in restaurants. Employers should PAY their workers a liveable wage. We should not be living in a tip dependant society!
They main opponent to any legislation that appears to do away with tipping is not actually tipped employees. If you hear ads on tv or radio, usually with the slogan "Save Our Tips," they are always funded by restaurant owner associations. The current system allows them to pocket the revenue from the sale, while the customer pays the employee's wages. Changing that would eat into their profits (oh, sorry for the pun).
In my state, there is a clause in employee compensation law that states employees can be paid below minimum wage if they have average tips that give them the minimum wage.
I agree, it’s ridiculous and out of control. The worst thing is that Americans travel to other countries where tipping is not expected yet they tip anyway and are now habituating the locals to expect tips from foreigners. I was in a country which I won’t name; their restaurant workers are paid a full wage with benefits. I was with a friend of mine and he suggested I tip the server. I asked the cashier about it and was told it was not necessary and not expected. He confirmed the servers were paid a full wage with benefits and did not expect tips. My friend guilted me into tipping anyway.
Tipping used to be a sign the customer appreciated a service that went above and beyond what is expected. Nowadays it is there, as a matter of fact, systematically, to supplement the worker’s meager salary that the employer can’t afford or doesn’t want to pay his or her employees. We are all subsidizing business owners for their lack of ethics and accountability towards their employees. In some cases, business owners cannot afford to pay their employees more, I get it, and at some point we need to take a hard look at our priorities as a capitalistic society and treat employees with more dignity. I understand this is not as simple as it sounds but other countries manage, so we should too.
@Ed Lavender What I hate are restaurants that charge $7 for a draft 12 oz Yuengling.
Didn't I see you featured on a CNBC video yesterday?
I tipped as much as 50% or more during the pandemic and not just restaurants but the bands, too. It was important to help, especially when restaurants began with 25% capacity.
In 2023, I found restaurants have gotten greedy, raising prices on the menu every week! The service has not been experienced waiters but bus boys who got the job because good waiters left during covid and got other work. The same goes with the Chefs! Cheap food at 5 star prices, but it isn't the fault of the waiters. Most of them only get tips, and restaurant owners don't pay them a wage.
The bands deserve to be paid more. It's uncomfortable to see them perform in a classy restaurant with a tip bucket! It's embarrassing for the band and the customers.
I wonder how much percentage of tips is going to the restaurant owners?
I used to get paid $2 an hour at a Mexican restaurant I truly relied on customer tips and i hated that they felt having to tip cause I tip based on my past work experience /: I worked there back in 2019 left after 3 or 6 months i think
I once asked for the (negative) tip button at a cafe rio, after the person putting my order together lost their mind threw my food into a trash can and walked away after I asked for no cheese on my tacos. That’s totally the type of service that deserves a tip, right?!?!
Generally, my family tips 20%, even though in Canada, depending on the Province, the minimum wages are between $14-16/hour. Now people tend to tip on the full amount of the bill, but technically, you shouldn't tip on the taxes added. What bothers me is that I have seen the percentage at some restaurants be as high as 30-35% tip, which in my opinion is getting out of control. I would definitely support paying higher wages and dropping tipping altogether, because a tip is almost expected everywhere now. Some grocery stores are now thinking of introducing a 1-3 dollar tip option at the self check-out ..... really?????
I am from Brazil, and when I stayed in NY for a couple of months the tipping issue got me really confused. When I got my haircut in chinatown I paid for the service and as I was leaving most of the chinese barbers were yelling at me "the tip the tip". In brazil we don´t tip these kind of services, though we tip 10% in bars and restaurants (it´s pratically included in final bill).
I went to a cookie shop with my mom a few months ago, we walk in, both politely said “hello”, the cashier didn’t even respond just straight up stared at us, even while we were looking at different cookies. My mom said “are you going to speak or just stare at us?”, he eventually spoke but he didn’t really want to. When we bought our cookies he did the tip flip and we put no tip. The receipt printed, instead of handing it to us he took it and looked at it for 5 seconds and THEN handed it to us while shaking his head. These places want tips but can’t even give bare minimum customer service. It’s annoying af.
they should be trained to greet customers, either the management didnt train them correct or they did and the employee is refusing to greet, so either way no tip should be awarded until both issues are resolved.
Your mom’s an OG!!!
Seems like the worker was very tired and forced to come to work. Even though the service was quite bad I don't think they are fully to blame-- consider how management is not paying them enough or not giving people sick days
So, a song and dance for $2.75/hr + tips?? Employee needs to be more up beat, selling cookies at a counter for a living? How about their employee pay them a decent wage and tip is something a customer just feel like doing but not obligated?
I get the impression the younger generations want more for doing less. I used to tip before grocery delivery but stopped using grocery delivery for all of the times I got scammed. My recommendation is to stand your ground. If employeess aren't making enough money they should speak to their bosses. If the boss doesn't help then that employee should find work elsewhere.
You actually make it sound ok. Almost like Hobbit birthday gifts. If everyone is tipping everybody, then it all sort of cancels out in the end. No harm, no foul.
When I was a grocery store bagboy in the 60s, ten cents was the normal tip for carrying groceries to a customer's car. A quarter was considered a good tip.
Tipping is an interesting subject here in the U.S. We are a prime example of what happens when tipping starts to become out of control. Tips generally in and of themselves are good things, but with good things come the bad. We had many years of the good when it came to tipping in general, and now it's time for the bad. A good way to counter-measure this isn't to necessarily change the way we do tips, but make the change in the right direction. For example if the average American is getting coffee like that was shown in this video, they could anticipate needing to tip. Which would influence whether or not they spent that money or kept it to themselves for the future. Or only going out-to-eat as an example when you know you can afford to leave the 20% industry standard tip that's being pushed at us. Either method is definitely a net-negative, but removing tipping all together would generally only cause chaos in an economy that's used to tipping.
Its getting to the point where employers/companies are trying to force tipping in places that it has no business being in so they don't have to pay a livable wage. They can just pawn it off on the customer's, and make it look like its the customer's fault for not being able to make a living when in reality, its the scum bag employers who don't want to pay their employees.
I got asked to tip at a drive through car wash 😂
Rightfully so, I’d say. Minimum 30%
@Wow Wow I would tip 0%
That's been going on in my area for at least 30 years. There is always a tip bucket at the end.
Same, I pressed 0% looking at the worker straight to the eye
One restraunt I visited few weeks ago has 35% tipping option in a selection of three when check out. The other two was 20 and 30%. There is no preferred amount or cash tipping jar. They just default it like that. In five years you gotta pay double for every meal and that escalate quickly.
If you are that easily manipulated into guilt tipping, then the problem is in the mirror. It doesn’t take incredible levels of courage to just say no.
I grew up in the military and they had a sign on every table. It read " We pay our employees well and they do their job very well. Tip should be given for "EXCEPTIONAL" service and going way beyond"
Pay employee's well and the rest falls into place.
Tipping is always an option, not an obligation but the flip side of that is: Providing good (or excellent) service is also an option. It should be an expression of good will between the consumer and the service provider. As someone who makes a living off the good will of strangers, I make every effort to give the best service I can and it works out for me. As a consumer I have built a relationship with the Subway and Starbucks employees where I tend to get a little extra effort and higher quality food and service. That's just my personal experience though.
I definitely have started falling into the “resentful” category. I started tipping for everything, anytime that screen swiveled around I paid 18-20%. Now I am resorting back to just tipping on the services that I tipped on a few years ago (servers, hair stylists, nail salons, etc), I don’t care if anyone judges me. I’m not paying a tip on something like a bolba drink lol…
Yeah, I had paid like $11 for a smoothie at Jamba, and a tip is expected on top of that. It’s already so overpriced, like what? I did tip though.
Yep same, I'm back to the actual services, done tipping take out
@C I'm from europe and they ask me for a tip lol, I simply said no and told them to ask for better wage to their boss... I dont understand it so overpriced in la and las vegas and still they can't pay their workers good? Wtf in europe our foodprice is more expensive but we manage to put good price for costumers and pay workers good standard wage...
I found that I only started doing it so they don't spit in my food/drink lol.
I’ve heard of door dash meals bought and made by the restaurant, but just sit at the restaurant until the food is no longer edible because the tip towards the delivery person was too low to make it worth while to take the time and spend the gas to run the delivery side of getting it to the person who paid full price for the meal only to never get it!
I work at a pizza shop. and the credit card machine automatically asks customers to leave a tip if the want to. I don't pressure people to tip at all because I work in the kitchen and I'm not really providing a "service" but whenever people call to place a delivery order, that's the only time I ask if they want to leave a tip.
Went to a restaurant recently and as I walked through the door with my party I was told 18% was mandatory because we had eight people. I haven’t even received the service yet and they are telling me how much I should tip. Let’s just say several of us sat there for awhile with empty glasses no nut crackers (for the crab and lobster) and never even checked on to see how everything was. Now I always tip 25% cash because I understand how taxes work. Well let’s just say they got their 18% but on the books this time. 😂
I wonder if you could , then immediately tell them, "oh, we're two different groups.. of four people each," so you don't hit that eight-person group mandatory tip-fee...
So glad I live in a country where there is no tipping culture and no tipping option, and where restaurant staff will chase you down the street to return any tip you leave on your table.
Uber Eats is the only thing that has ever asked me to tip here (on top of hiked-up prices and the service fee) and, when I first saw it, it blew my mind. I thought I'd teleported back to the US.
As someone that just came back from a vacation in Australia (where there is zero tipping culture), it was so refreshing to just pay and leave and not feel any burden of guilt or responsibility to pay more. Tap and go and I truly wish that we were like this too.
Same in italy, its an insult to tip there when you tip it’s basically saying “ your broke let me help you out”
@Crunch wrap supreme American living in for 7 years. They love tips!!!
You know the tips on the tablet go directly to the employer, at least the last few places I worked. It's why they got rid of the tipping jars in which the employees kept the money
Wife is from Sweden so we go there alot and it's a good feeling. Over here I don't tip much anyways; only at restaurants but at bare minimum. Never understood why I should tip a person...that's their job.
I'm a homeless Uber driver with a tip jar for passengers because I'm drowning in problems and barely surviving. Honestly the tips aren't even enough. I'm still struggling and need more.
First met this on my first trip to the USA in 1984. I just thought "when in Rome etc, etc". In the UK if you order a beer you get your beer and the change with absolutely no sideways looks, in restaurants if you really enjoyed the evening you may well throw a few £ on the price but they don't expect it as a God given right and are thankful.
Same in Germany, where I'm living atm, depends on what I've had I might round the bill off to the next full note value. I've actually had a tip refused by my local gaeststtete (bar and restaurant) because the tip was too big.
It’s freaking outrageous. It’s all the way up to 30%. I told the cashier man, I can’t wait for the day i see 100%. I stop tipping over all because of it.
In Europe we almost never tip. Even in restaurants many people don’t tip. Tipping really is only when somebody went above and beyond or if you’re really happy with the service for example if a taxi driver got you somewhere quicker then expected or if the delivery man carried the furniture up the stairs
When I was working in Spain, I tried to tip the waiter who had served our table. He refused the tip stating tips are ONLY given to service providers that delivered outstanding service. This is contrary to what the expectation is by the same waiters/waitresses in the USA. In the USA the presumption is that there is an OBLIGATION to tip... even for bad service. I go by the European rule.
We have allowed bussines owners to con us into paying their employees for to long! The amount of places "requesting" tips is INSANE! I don't mind tiping for things for services like a server, delivery person or similar services but unless is a personal service I am NOT tiping. Employees need to stop looking at the customers to supplement their wages and start demanding higher wages from their employer!
As a non-US citizen, I find it absolutely mind-boggling that it's legal to exempt certain workers from receiving less than minimum wage. What part of "minimum" is unclear?
It is illegal to hire someone and not pay the minimum wage in the USA. Workers are being paid at least the minimum wage or the business owner will be closed down.
@Thakius Muckfeather no they aren't businesses are paying people 2 or 5 dollars per hour while tips are supposed to make up the difference
@Thakius Muckfeather Yea I was working as a jett's pizza delivery driver and they only paid me 5 (minimum wage was 8.25 at the time).
Whats worse is that they were taking advantage of the loophole by hiring extra drivers to make us wash dishes for 5 bucks an hour!
@Thakius Muckfeather nope, a dominoes pizza delivery driver only gets paid $4 an hour. If the customers don’t tip, the driver literally looses money on gas. Employers are always good at exploiting their workers.
@Darren Ellis it is federal law that if they don’t make the minimum with tips the employer has to make up the difference
Companies are using tips to get out of paying employees fair wages and benefits. Now we’re seeing this even more with restaurants tacking on fees to cover their employees health insurance. It’s outrageous
I recently went to a taco place, where you have to get your order from the counter, they don’t even have cutlery or plates, you eat on a paper napkin. They even have signs on the wall like- ‘Clean up after yourselves, this aint your mama’s place’. And I am expected to tip there from 18%- 25%. Ridiculous
I agree. It's way out of control. I have decided myself to decreased the amount that I tip or not tip at all this is not a direct service like in a full-service restaurant. Getting sick of all this pressure.
Thanks for making this video. I always guilt-tipping has gone out of control!
I tip 20% in a sit down restaurant (unless the service was awful). A dollar or so per drink at the bar. And 3-5 bucks for food delivery. That's it. No exceptions.
Companies need to step up and pay their employees more. Don't leave it up to the customers to provide decent wages!
Agreed. Doordash for example only pays drivers on average $2 per order. At 2 - 3 orders an hour it's impossible to pay for gas let alone every other living expense without relying on tips.
With the rising costs of rent, it seems everyone needs to get paid $100k or more. Some hairdressers are earning 6-figure salaries on tips alone.
@Muny_ManNO WAY!!! $2 per order!!?? I thought they paid minimum hourly wages.
Why on earth do you think customers won't pay for employees if they increase the wage. Even if corporations are going to increase the wage, their costs are going to go up for which they are going to increase the price of the product. Basically the customer pays the same or maybe even more if they increase their profit margin from the existing one.
This is why I love Japan, the tip is included in the price. You don't even need to think about it. It makes the experience so much better.
Yes, it is out of hand!! I've been saying that for years. I automatically tip 20%, but I would rather just have the restaurant just charge more and stop asking for a tip.
Interesting. Did not know this was a thing. I don’t eat out much but I’ve always found tipping pointless when they are getting paid right. Unless it’s my favourite restaurant. I always tip a lot with UberEATs and all that but they don’t get paid nearly as much.
This madness started during covid, when the stay at homes wanted to show appreciation for the service workers still working out in public. But now it's stuck, and more and more businesses are throwing out a tip jar.
I went to PF Changs and chose 'pick up' to minimise cost (tax, delivery, tips). It's normal to keep food on a shelf with your name but here, the guy waited for me, gave me my order and expected a tip. I didn't, because why? An old lady started glaring at me but I don't feel at all guilty. Screw them
Tipping has always infuriated me. When I went to New York, I was asked to tip like 15% for the bartender to literally open a bottle of beer - it's honestly wild. You breathe and they expect a tip. It's so engrained in U.S. culture that staff get annoyed when a customer doesn't tip, but doesn't get annoyed about a multi-million dollar restaurant not paying you a fair wage. It's simply just a way for companies to make more profit whilst you (the backbone of the business), rely on customers gratuity.
In a realistic world, if everyone decided to not tip, companies will literally be forced to pay their staff a wage to keep their employees.
Problem is we are in fact annoyed at the million/billion dollar corporations who refuse to pay decent wages but there's nothing we can do and if we don't end up getting tipped we don't make enough to live. And that's how the filthy rich like it
You know what’s crazy? You could have bought a case of beer and enjoyed that at home. Do you understand what I’m saying or should I go in further?
@TJ Blackmore viewpoints like this irritate me as they excuse the selfish actions of greedy corporations. Employers should be paying their employees a livable wage and if they can't do that, then they shouldn't be in business. Guilt-tripping people into tipping for unnecessary things even if the service wasn't good is NOT the direction America should keep going in. You should tip if you have the money and feel the service was exceptional, while at the same time the employee should be making a livable wage and should not rely on tips to pay the bills, that's insane.
Its especially bad when the restaurant adds a automatic gratuity charge for less than a large group, then complain you didn't tip. One place I went to added 20% automatic gratuity then had the nerve to add in "Add Additional Tip" with suggestions in the 15%+ range. So if you weren't paying attention, you would literally put in a 40% tip because you are used to paying 20% at restaurants (assuming you usually tip that much that is). BTW, they added the automatic gratuity for 2 person table AND calculated the tip based on Total not Subtotal.
Edit: Its probably even higher since the automatic gratuity is included in the total, therefore the suggested "additional tip" is actually even higher.
@Yuh He's right. If people realize that staying home and getting your own food/drinks is cheaper, then these horrifically over-bloated restaurants will die off. It's the perfect solution.
I hate the social pressure that comes with tipping. I was taught that you only give tips if the service was above-and-beyond or I've caused a hassle. That's it. Tipping everyone, everywhere is insane. I'm about to be a teacher. Should I put a tip jar on my desk, too?
I moved into town a couple of years ago and found a beer I like at a local brewery. I am asked to tip when I stop in to pick a 6 pack. I felt guilty at first for not tipping but I'm over it.
Yes. It is out of hand. I think the business owners should pay decent salaries for staff and customers should tip ONLY IF they want to. Because now many would not go to business looking for saving those money on tips
Digital tipping systems ensure that your tip reaches the business owner, of course they love it. Next time you're prompted for a tip on a tablet, ask the server how much of that tip they actually see.
I live in Orlando, FL where there obviously a lot of tourists. The amount of people I’ve told to eff off for expecting me to tip them for their non service, or pre service job is insane. They can make their money off of dumb tourists, but they’re not getting a penny from me without providing an actual service.
I remember one time I went to a bar at a music venue and ordered two beers for myself and my uncle. The bartender reached into the fridge, opened two tall cans and handed them to me. Then when he passed me the card reader, it gave tip options of 18%, 20%, and 25%. I skipped the tip option and payed the already ridiculous price for two beers. When I handed the card reader back, the bartender gave me a disgusted look when he saw I didn’t tip. I just couldn’t believe that he genuinely thought I would tip him 18% for just reaching into a fridge and opening two beers. Modern-day tipping culture is terrible and it’s crazy how society is expected to tip large amounts for the most basic services.
bartending and waiting tables is a little different. in most cases they get paid less wages due to the expectation they get tips. not sure where it lies now but up until recently most establisments in GA pay their servers and bartenders something like 2 dollars and change an hour.
@camjohn5153 Hello and sorry for bothering you. I have heard that in some cases there aren't any "decline tip" options available!
@Nate oh so we all have to go to a course to study which professions get paid less and be experts in that knowledge now, just to buy things? Awesome. Keep defending bartenders...great job and way to encourage tipping culture.
@gamingbtc wow. if you have to take a course to figure out service industry makes less due to it being a traditionally tipped service. pay based upon the quality of service rendered. you got alot of courses to take. not sure but seems like you intended your comment to be insulting. but really says a whole lot more about you. and your intelligence. or lack there of. Heres my last lesson young padawan. tip the pizza delivery guy. But you have every right to be upset about them pressuring you to tip at a drivethru......
@gamingbtc Tipping bartenders has existed well before this insane tipping culture stuff.
I went to get my haircut a few months ago at Great Clips and on an $18 haircut I tipped $2 , a little over 10% The person who cut my hair proceeded to shame me into adding another dollar with the explanation that $3 should be the minimum tip so I obliged but left the store with a bad taste in my mouth . The next time I went there was a printed out memo to customers that a $3 tip was SUGGESTED , and that was the straw that broke the camels back . I told the same girl from the previos encounter that YOU DO NOT get to dictate what the tip amount is , that you should be APPRECIATIVE of ANY tip you get , and that you should be ASHAMED of your little memo trying to shame customers into tipping you better , and that I thought 10% was more than fair . She replied that 10% was for waiters and waitresses , who I ALWAYS tip 15% to 20% on the occasion that I go out to eat at a restaurant . We agreed to disagree and I left and got my hair cut somewhere else . As a Handyman I RARELY get a tip and CERTAINLY NOT a 10% tip when I do , but whatever extra is given I express my apprreciation as ANY tip merits .
The notion that Fast Food workers now think theydeserve a tip on top of the higher prices passed on because of their demand for increased salaries just makes my blood boil .
What used to be a voluntary tip for good service has turned into an obligation, and restaurants saw that they could pay miserly wages because customers had to pay a 15-20% tip. I tip well when I can, as I realize restaurant workers' pay is terrible, but I resent the industry into strong-arming me to meet their labor obligations. (And of course, calculation of benefits like pension does not include tips).
If tips go up, is the level of service going up as well. I’ve notice many dine-in restaurants have reduced staffing levels. I know in many cases it’s due to not having the employees. Then….don’t expect the customers to pick up the slack for your employees.
I am an equal opportunity non-tipper. I don't care what you did for me in the service industry, you SOL with me on the tipping front!
do you go out to eat???
I'm from Germany, we have a tipping culture, but it's basically only in actual restaurants with service, hair dressers, taxi drivers, stuff like that. And it's more like 5-10% and not really required.
Anyway, when I was visiting the US and they showed a "tip tablet" in my face at an ice cream place, I was utterly shocked. It's absurd how they hide the "no tip" button as well.
I'm sorry, but I won't tip for Ice Cream or a Smoothie, that was overpriced to begin with.
Whoever said it was legal to pay employees less because they make tips is the cause of this problem.
Absolutely, I can't agree with you more.
In most cases, the employer has to pay the employee the difference if they don't get tipped at least up to minimum wage, correct?
Pay cash. Problem solved
In California min wage is $15.50 including tipped employees -- and they still having tipping.