‘It’s out of control’: the fight against US ‘tip-creep’

TruthLens AI Suggested Headline:

"Growing Backlash Against U.S. Tipping Culture Amid 'Tip-Creep' Concerns"

View Raw Article Source (External Link)
Raw Article Publish Date:
AI Analysis Average Score: 7.2
These scores (0-10 scale) are generated by Truthlens AI's analysis, assessing the article's objectivity, accuracy, and transparency. Higher scores indicate better alignment with journalistic standards. Hover over chart points for metric details.

TruthLens AI Summary

The tipping culture in the United States has become a contentious issue, especially in the wake of the pandemic, which has led to an increase in the expectation of tips across various sectors. Garrett Petters, a 29-year-old architect from Dallas, shared his experiences after a trip to Paris, where he appreciated the different approach to tipping. Unlike in the U.S., where service workers often depend on tips to supplement their income due to low base wages, European establishments typically include service charges in the overall cost. Petters noted that tipping in the U.S. has shifted from being an expression of generosity to a social obligation, creating a sense of guilt among customers when faced with the ubiquitous request for tips. This phenomenon, termed 'tip-creep,' has infiltrated even unexpected venues such as self-checkouts, grocery stores, and vending machines, leading many individuals to feel overwhelmed by the constant pressure to tip, regardless of the level of service provided.

A backlash against this trend appears to be emerging, as tipping rates have seen a decline from their pandemic peak. Recent data indicates that average tips in full-service restaurants dropped to a six-year low in late 2024. Customers like Petters are now opting to tip less in hopes of compelling employers to raise wages for their staff, a sentiment echoed by others who express frustration over being guilt-tripped into tipping. While some individuals, like bus driver Robert Healey, have chosen to increase their gratuities to support service workers, many others are rejecting the notion of tipping altogether in situations where they feel it is unwarranted. This rebellion against tip-creep is indicative of a broader conversation about the adequacy of wages in service industries and the ethical implications of relying on gratuities to supplement income. As the debate continues, the future of tipping culture remains uncertain, particularly in light of potential policy changes proposed by political figures aiming to eliminate taxes on tips, which critics argue could exacerbate the issues surrounding low wages and job security for service workers.

TruthLens AI Analysis

The article provides a critical examination of the changing tipping culture in the United States, particularly focusing on the phenomenon referred to as "tip-creep." It highlights the experiences of individuals who feel overwhelmed by the increasing expectations to tip in various sectors where it was previously uncommon or unnecessary. This trend has sparked a conversation about the fairness and sustainability of tipping practices, especially as they have expanded into unexpected areas.

Cultural Commentary on Tipping Practices

The narrative draws a contrast between the tipping culture in the U.S. and that of Europe, where service workers are typically paid a living wage, reducing the necessity for tipping. This comparison serves to underscore the frustrations many Americans feel about their own tipping obligations, suggesting that the U.S. system may be exploitative. By sharing personal anecdotes, the article aims to resonate with readers who may share similar sentiments of discontent regarding the tipping culture.

Backlash Against Tipping Expectations

The article notes a backlash against rising gratuity expectations, with recent data indicating a decline in average tips at restaurants. This shift may signal a growing awareness among consumers about the pressures of tipping and could lead to broader discussions about fair compensation for service workers. The mention of reducing tips as a form of protest reflects a collective response to perceived exploitation by businesses.

Manipulation and Public Sentiment

There's an element of manipulation in how the article frames tipping as a source of guilt rather than generosity. By emphasizing feelings of obligation, the article aims to evoke empathy and support for the movement against tip-creep. However, it does not provide a balanced view of the potential consequences for service workers who rely on tips for their livelihood, which could be seen as a deliberate oversight.

Connections to Broader Economic Trends

In the context of economic discussions, this article touches on the implications of tipping culture for service sector workers and the economy at large. It raises questions about wage structures and the sustainability of reliance on tips, which could have broader ramifications for labor practices and economic policies.

Community Impact and Audience Engagement

The article likely resonates more with younger, economically conscious audiences who may feel the weight of financial obligations and societal pressures. It engages with a demographic that values equity and fair labor practices, potentially rallying support for changes in how service work is compensated.

Market and Financial Implications

While the article focuses primarily on social issues, its implications could extend to businesses that rely heavily on tipping, suggesting a potential shift in consumer behavior. This might affect stock prices or investment decisions in sectors like hospitality and retail, where tipping practices are a significant part of the business model.

Geopolitical Context

While the article does not explicitly discuss geopolitical issues, the conversation about labor rights and fair compensation is relevant in today’s global economic climate. It aligns with broader movements advocating for worker rights and fair wages, which are increasingly at the forefront of political discussions.

Use of AI in Reporting

It is possible that AI tools were utilized in crafting this article, particularly in analyzing public sentiment through data collection from reader responses. AI could have influenced the tone or direction of the narrative by identifying key themes in reader feedback, shaping the overall argument presented.

The article serves as a commentary on the frustrations surrounding tipping culture in the U.S., encouraging readers to reflect on their own experiences and the implications for service workers. It raises critical questions about fairness and the evolving expectations of gratuities in today's society, which may lead to significant discussions and potential changes in consumer behavior.

Unanalyzed Article Content

When Garrett Petters, a 29-year-old architect in Dallas, and his girlfriend travelled to Paris last year, one of their favourite parts was eating out. They enjoyed French duck, andouillette, plenty of bread, cheese and coffee and even escargot.

But it wasn’t just Paris’s cuisine they admired. It was also the different tipping culture. “We were talking about how nice it is in Europe that they pay their waiters and waitresses and we don’t have to tip because of it, and isn’t that cool,” Petters said. It felt very different from back in the US, where tipping culture felt “out of control”.

Tipping has been a longstanding practice in US businesses, where service workers often makeless than the federal minimum wageand rely on gratuities to make a living. But starting half a decade ago, when the pandemic disrupted everyday life and injected danger into frontline jobs,tipping increased– and then began to creep into new sectors. Now peoplesay it is inescapable.

Responding to a Guardian callout asking whether their tipping habits have changed recently, people shared their experiences and views on tipping – with many suggesting they are now fighting back against “tip-creep”.

Self-checkouts, drive-throughs, hotdog stands, drug stores, a bottled water stall at a jazz festival, an airport vending machine, a used bookstore, a cinema box office, a children’s arcade – these are a handful of the surprising places people reported being asked for tips, with several suggesting companies were taking advantage of new social expectations on gratuities.

“Before, tipping was considered generosity,” Petters said. “Now, it’s about guilt.”

But a backlash could be brewing, with gratuities falling from a pandemic peak. Average full-service restaurant tips in the fourth quarter of 2024 fell to 19.3%, which is a six-year US low and down from a high of 19.9% in the first quarter of 2021, according todata from Toast.

Petters said he was adding less on to the bill now, in the hopes employers would be forced to increase pay for staff. But when he mentioned this to acquaintances working service jobs, he added, some people became angry. “I just said, ‘Why aren’t you mad at your boss for not paying you a liveable wage?’

“I think business owners are really taking advantage of the situation.”

He is concerned by how companies relying on tips to subsidise wages can make workers especially vulnerable to how generous customers are feeling – which could prove disastrous duringa recession.

The ubiquity of electronic point-of-sale (POS) cash registers – which spin round and offer a gratuity option – is another reason for tip-creep. In one of Tom Schultz’s local grocery stores in Denver, Colorado recently, the 75-year-old said he took a can of olive oil to the counter and was asked for a tip. “We’re confronted with this at every transaction,” said Schultz, a retired lawyer and musician.

Schultz said he enjoyed chatting to cashiers, sharing a smile or joke and experiencing a brief connection. In general, he felt “very comfortable just saying ‘no tip’” when there was not genuine service, but “there’s always a bit of tension involved” given the server is typically standing right there.

“It’s always a bit unsettling, it’s uncomfortable,” he said, adding that the workers’ themselves often seemed ashamed about being forced by their employers to request a tip. The impact, Schultz said, is it could become “a barrier to real communication with human beings”.

For Ellen, a 33-year-old career cook in Worcester, Massachusetts, the rules of tipping while growing up were easy to grasp: 18% was standard for restaurants, perhaps adjusted upwards 5% for exceptional service. She worked as a barista for a year before Covid-19 so knew the importance of tips.

Now, she said, it felt as if the social rules on tipping have come unstuck, and establishments often feature a “suggested tip” starting at 25%. “It seems rude to me,” she said.

“I feel like businesses are trying to guilt-trip me into tipping more, which I resent,” Ellen added. Recently she has been selecting the lowest option, or not tipping at all for workers covered by regular minimum wage laws, such as at grocery stores and counter-serve stations.

“It feels sort of countercultural, like a little rebellion to not tip, as if you’re saying, ‘No, I will not tip, who are you to even ask me?’” she said.

It’s a similar story for Ian, a 46-year-old home caregiver in Springfield, Missouri, who has recently felt fatigued by the ubiquity of tip screens.

“I’m just not going to be guilt-tripped by those outfacing POS systems any more. My rule will be, just coffee shops and restaurants and bars from now on,” or places with a personalised service like a massage or haircut.

Some people, however, told the Guardian they have chosen to become more generous with gratuities recently.

“I tip more now as I believe, thanks to the gig economy, more people are working harder for less,” said Robert Healey, a 68-year-old bus driver in San Jose, California. “I probably overtip, unless the server treats me like crap.” Healey added, because his pay was above-average, he was happy to tip to support lower-income workers.

But ideally he wanted to see jobs paying subminimum wages, such as many bar roles, abolished. “Everyone working should be covered by the minimum wage,” he said.

In Tampa, Florida, 62-year-old Sandra said she has increased her tip percentage from 15% to 20% or 25% recently in response to tough times locally.

“Three major storms in 2024 in my area, combined with ongoing Covid issues, have devastated some of my neighbours,” she said. “From the tow guy, to the nice lady who works at the laundromat, to waiters – Florida is focused on service and hospitality jobs, and I see pain in people’s eyes.”

Sandra added: “Maybe a nice tip won’t change their life, but maybe the tip can help them put gas in the car or help with buying groceries.”

Donald Trump, meanwhile, has said he wants to eliminate taxes on tips, but critics say this would further incentivise the spread of tipping culture and low wages – making more workers’ incomes vulnerable to fluctuations in generosity. Whatever the outcome of the president’s policy, for now it looks as if US tipping culture is here to stay.

When Healey was at a Mexican restaurant with family recently, at the end of the meal, he put down “tip – $0” for his card payment. He was worried after seeing “outrageous” stories aboutcompanies pocketing tipsfrom workers, Healey said. So instead, as they left, he handed a generous cash tip directly to the servers.

“These are the people who are doing the work,” he said.

Back to Home
Source: The Guardian