June 7th, 2023 7:00am PDT
(PenniesToSave.com) – According to a recent report from Bankrate, economic factors and the presence of tipping screens have led to fewer Americans giving tips. The report reveals that only 65% of American adults consistently tip their servers at sit-down restaurants, which is a decline from 73% last year and 77% in 2019. This decrease in tipping extends to various service providers, both during this year and before the pandemic. The survey included workers such as servers, hair stylists, food delivery personnel, and coffee shop baristas.
Interestingly, adult consumers are the least likely to always tip when it comes to home services like repairs and picking up takeout. However, over half of adults consistently tip food delivery personnel, hair stylists, and servers at sit-down restaurants.
The Bankrate survey, conducted by YouGov, collected responses from a total of 2,437 adults during the period of May 3 to May 5.
Factors such as high inflation and economic uncertainty may be leading Americans to tip less or less frequently, according to Ted Rossman, a senior industry analyst at Bankrate. Furthermore, the rise of iPads and other similar technologies with predetermined tipping options has sparked criticism and backlash.
Surprisingly, the survey revealed that when presented with pre-entered tipping options and assisted by someone behind a screen, 18% of adults either tip less or not at all.
Rossman pointed out a change in people’s behavior regarding these screens. He noted that this year, there was a significant increase in the number of individuals who reported tipping less or not at all when presented with pre-entered options, compared to those who said they tip more. This represents a reversal from the previous year.
When it comes to tipping at cafes and restaurants, the most commonly suggested percentages are 15%, 20%, or 25%. However, only 44% of adults actually tip 20% or more at sit-down restaurants. In 2022, the median tip given to servers in these establishments was around 20%.
The majority (66%) of people hold negative views about tipping. Among adults, 30% believe that tipping has become excessive. This sentiment is even more prevalent among GenXers (33%) and those earning over $100,000 annually (40%). However, there is no available comparison to previous surveys to gauge any changes in opinion over time.
There are significant variations in tipping behaviors and beliefs based on generational and income differences. Millennials, Gen Z, and men tend to be more inclined to give lower or no tips across various categories. Interestingly, 21% of millennials and 18% of Gen Z individuals even support the idea of eliminating tipping altogether, a proportion higher than the 12% of Baby Boomers who share this perspective.
According to Ted Rossman, younger adults and men have a tendency to be inconsistent tippers. They may tip less often, but when they do, the amount is often larger compared to other groups.
Although tipping has become less common among Americans, 14% of respondents state that they have actually increased their tips since the pandemic began. This number jumps to 20% among households with higher incomes. Rossman recognizes that previous efforts to replace tipping with higher inclusive prices have largely failed as alternative models.
“I believe that, in the end, tipping is deeply ingrained in our culture and will continue to be part of it, whether we like it or not,” says Rossman. “Changing this practice would require a powerful and widespread movement.”