Tipping Culture's Sting: Americans Speak Out
Increasing Dis contentment among Americans, particularly the younger generation, towards the practice of tipping.
Tipping – the practice as old as centuries – is causing a stir amongst Americans, especially among the youth. A recent Bankrate report reveals that 41% of Americans feel that tipping culture has become an excessive burden, an increase from last year's 35%.
There's a growing sense of discomfort, particularly around pre-set tip screens on electronic payment systems. The report indicates that this discontent has reached 38%, up from 34% in the previous year.
"We're increasingly being asked to tip in unconventional places," says Ted Rossman, Bankrate's senior industry analyst. This new normal includes tipping at strawberry farms, doctors' offices, and yes, even self-checkout counters. "It can feel a bit absurd at times," he adds.
About two-thirds of surveyed Americans believe businesses should take on the responsibility of paying their employees a fair wage instead of relying on tips. In line with this sentiment, Congress is considering a budget proposal that could bring tax benefits to workers earning tips.
"Businesses are grappling with the conundrum – they don't want to hike prices too much but they want to support their staff," Rossman explains. "Tipping, in a way, has become a hidden charge of sorts."
Tip Frugality Among Younger Consumers Raising Eyebrows
The younger generation, GenZ and Millennials, are less keen on tipping regularly. The report showed that 25% of GenZers and 45% of Millennials always tip their hairdressers or barbers, in contrast to 67% of GenXers and 71% of Baby boomers.
At full-service restaurants, the numbers drop further. Just 43% of GenZers and 61% of Millennials tip all the time, compared to 83% of GenXers and an astonishing 84% of Baby boomers.
"The tipping rates among younger consumers seem relatively low," Rossman commentes. He speculates that their minimalist spending habits and skepticism towards tipping might explain this trend. "Tipping is deeply ingrained in our society – it's not vanishing anytime soon," he reassures us.
While complaints about tipping are on the rise, the percentage of people who always tip has stabilized after a period of decline.
The Bankrate report was based on a survey of nearly 2,300 adults in late April.
[1] Bankrate.com[2] CNBC[3] The Washington Post[4] The New York Times[5] CNN Business
- In response to the growing burden of tipping culture, some are advocating for businesses to finance their employees' fair wages rather than relying on tips, as suggested by the budget proposal under consideration by Congress.
- A shift in tipping habits among younger consumers is raising eyebrows, with GenZ and Millennials less likely to tip regularly compared to older generations, such as GenXers and Baby boomers.
- The report revealed that GenZ and Millennials are adopting more frugal tipping practices, with only 43% of GenZers and 61% of Millennials consistently tipping at full-service restaurants, compared to 83% and 84% of GenXers and Baby boomers, respectively.
