Current:Home > MarketsTwo-thirds of Americans now have a dim view of tipping, survey shows -EverVision Finance
Two-thirds of Americans now have a dim view of tipping, survey shows
View
Date:2025-04-18 15:10:12
Whether you're dining at a Michelin-starred restaurant or using a self-serve kiosk, most commercial transactions today conclude with an invitation to tip. But while the opportunity is ever-present, Americans are tipping less this year due to inflation and general economic unease, a new Bankrate survey found.
Adults are tipping less for a range of services where it's common to offer a gratuity. Hairstylists and barbers are seeing the greatest drop — a 13% decline in tips compared with 2022, according to the personal finance site, which surveyed people on their own tipping habits. Servers at sit-down restaurants and food delivery workers are also seeing significant reductions, with their tips down 8% and 7%, respectively.
"We've hit an inflection point where people are getting annoyed about how much things cost, combined with a growing proliferation of businesses asking for tips," Ted Rossman, senior industry analyst with Bankrate, told CBS MoneyWatch. "I think a lot of people are saying enough is enough."
Who tips the worst?
Gen Z, Millennials and men stand out for being the worst tippers, while older generations and women tip more generously, according to the survey. Rossman said young adults and men tend to be "boom or bust tippers," but when they do tip they tend to offer more than older adults and women.
People who work in the service industry tend to tip better, reflecting their appreciation for the lengths some employees go on behalf of their customers.
Perhaps not surprisingly, the main factor influencing young adults' tipping habits is income — given that employees who are earlier in their careers generally have less money to go around.
"Some of it is showy, inherent to men mostly," Rossman said. "Sometimes we tip because it's expected, and sometimes it's out of guilt. But it's hard to generalize when we talk about these larger demographics."
Deepening resentment
One reason for the tipping overload could be businesses' efforts to retain workers while keeping their own expenses low, Rossman suggested.
Since the pandemic, smaller businesses in particular have found it harder to find and retain workers, and many states' minimum wages have increased. That's increased the pressure on employers to keep raising pay for their own workers, many of whom are seeing their incomes eaten up by inflation.
"Employers are actually more affected by inflation, as on a percentage basis states have raised the minimum wage and wages are the No. 1 line item for most businesses," Rossman said. "Service industry wages have risen more than white-collar wages, which affects the bottom line. Certainly, inflation is hitting consumers, but I actually think the employer side of the coin might be driving this trend."
One thing is clear: The ubiquity of digital payment apps that invite consumers to tip appears to be breeding some consumer resentment. Two-thirds of those polled expressed a negative view about tipping, Bankrate found, while 41% of respondents said businesses should pay their employees better rather than relying so much on tips to boost workers' income.
Meanwhile, just 16% of adults say they would be willing to pay higher prices if tipping were eliminated altogether.
Sanvi BangaloreSanvi Bangalore is a business reporting intern for CBS MoneyWatch. She attends American University in Washington, D.C., and is studying business administration and journalism.
TwitterveryGood! (4)
Related
- IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
- Trump lawyers say proposed protective order is too broad, urge judge to impose more limited rules
- Georgia tops USA TODAY Sports AFCA coaches poll: Why history says it likely won't finish there
- YouTuber Daniel Sancho Bronchalo, Son of Spanish Actor Rodolfo Sancho, Arrested for Murder in Thailand
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Mom accused in child's death from 3rd floor window was subject of prior reports, state says
- Cost of Missouri abortion-rights petition challenged in court again
- The World Food Program slowly resumes food aid to Ethiopia after months of suspension and criticism
- McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
- A lost 140-pound baby walrus is getting round-the-clock cuddles in rare rescue attempt
Ranking
- Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
- Carcinogens found at Montana nuclear missile sites as reports of hundreds of cancers surface
- Stormy weather across northern Europe kills at least 1 person, idles ferries and delays flights
- 'Claim to Fame' castoff Hugo talks grandpa Jimmy Carter's health and dating a castmate
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- Morgan Wade Reveals Why Kyle Richards Romance Rumors Bothered Her at First
- Swarms of birds will fly over the US soon. Explore BirdCast's new migration tool to help you prepare.
- Stop calling us about manatees, they're just mating, Florida authorities tell beachgoers
Recommendation
Sonya Massey's father decries possible release of former deputy charged with her death
Consumer credit grows at moderate pace as Fed rate hikes take hold.
Maintaining the dream of a democratic Taiwan
Biden jokes he can relate with Astros' Dusty Baker, oldest manager to win World Series
What to watch: O Jolie night
Stop calling us about manatees, they're just mating, Florida authorities tell beachgoers
Tory Lanez sentencing in Megan Thee Stallion shooting case postponed: Live updates
England advances at World Cup despite Lauren James' red card in Round of 16 versus Nigeria