The Decline of Tipping in America
Tipping in America is on the decline. People are tipping less than before. In restaurants, the average tip was just 18.8% in the third quarter of 2024. That’s lower than 19% in 2022 and 2021. So, what’s going on here? Why are people tipping less even though tipping has been a standard practice for so long?
Some experts believe this is just a sign of changing attitudes toward tipping culture. What used to be a voluntary gesture of appreciation for good service is now being seen as a pressure-filled expectation. As more people question the practice, they’re starting to tip less—or not at all.
What is “Tipping Fatigue”?
People are getting tired of tipping—this is what’s called “tipping fatigue.” With digital payment systems at checkout, it feels like there’s always pressure to tip, even when we feel like we don’t have to. Before, tipping was just dropping cash into a jar or handing the server a few bucks, but now, apps and payment screens force you to choose an amount. It feels awkward to ignore the pre-set amounts or to select “no tip” when everyone else is tipping. This has led to many customers leaving smaller tips or skipping them altogether.
Inflation’s Impact on Tipping
Inflation is also playing a role in why people are tipping less. With rising prices, people are being more cautious with their spending, including tipping. A recent survey shows fewer people are tipping like they used to, which reflects the tightness of their budgets. As costs for food, gas, and everyday necessities climb, tipping becomes one of those areas where people cut back. This has made many people reconsider how much they’re willing to tip.
Tip Creep: Why Are More Places Asking for Tips?
It’s not just restaurants anymore. Now, apps, delivery services, and even cashiers are asking for tips. This is what’s called “tip creep,” and it’s making people feel like tipping is expected everywhere. A few years ago, you might have only tipped at restaurants or for services like taxi rides, but now, even small transactions—like getting coffee at your local café or ordering takeout—come with a tipping prompt. This change is frustrating customers who feel like they’re being asked to tip in places where tipping wasn’t even a thing before.
What’s Next for Tipping Culture?
So, what’s going to happen to tipping in the future? It’s hard to say. Will the culture of tipping continue to decline? Or will it evolve into something new? The truth is that businesses will need to find a balance between compensating their workers fairly and avoiding making customers feel pressured into tipping. Whether this pressure will push people further away from tipping, or lead to new ways of rewarding good service, is still up for debate. The tipping culture is definitely changing, and it will be interesting to see how things develop in the coming years.