Two-thirds of American consumers have a problem with tipping restaurant servers and other workers who rely on gratuities, according to a new report from Upgraded Points—and many think employers should do more to ensure staff members earn a fair wage.
The report, called “Americans and Tipping in 2024,” looks at tipping trends and the “tipping culture” in the U.S. It points to a 2023 Bankrate survey that found U.S. adults between ages 18 and 77 tipped less on average last year than in previous years, while some said they didn’t tip at all, even when dining in at restaurants.
“This downturn in tipping rates might be explained by the increasingly common perception of tipping as a negative aspect of the dining and shopping experience,” the Upgraded Points report states. “As many as 66% of those recently surveyed [by Bankrate] said that tipping is beginning to leave a negative taste in their mouths. This is understandable at a time when many people are struggling to make ends meet.”
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The Bankrate survey also found that 41% of Americans surveyed think “businesses should pay their employees better rather than relying so much on tips.” Additionally, 32% get annoyed by tip screens with suggested tip amounts.
On the other hand, just 16% said they’d be willing to pay higher prices if they didn’t have to tip.
According to the Bankrate survey, 42% of American adults said they typically tip at least 20% at dine-in restaurants. A separate survey cited by CNBC last year showed that a typical tip in 2023 ranged between 15% and 25%.
Overall, the number of people who tip restaurant servers was down in 2023, the Bankrate survey found. Sixty-five percent of U.S. adults always tipped their servers at dine-in restaurants last year, compared to 73% in 2022 and 77% in 2019.
“What we’re seeing now nationwide is something that is known as ‘tipflation’…at every opportunity we’re being presented with a tablet that’s asking us how much we’d like to tip,” etiquette expert Thomas Farley (also known as Mister Manners) told CNBC.
