Opinion

Regulate tipping in stores

By: Katie Nelson

Center Editor 

One of my greatest pet peeves is walking into a store, ordering takeout or simply selecting options from a menu, and being asked to tip. The option for tipping has exploded in the last decade, especially with new technologies that make payment quick and simple, to the point where it has become excessive and bothersome. Yet, I always feel guilty for not tipping and confused by when it is expected to do so. Businesses need to acknowledge that the tipping culture has gotten out of control and resolve the issue by reducing the use of the touchpad tip system and establishing more defined standards surrounding the tipping culture. 

The impression that tips are getting increasingly out of hand is not an uncommon sentiment. According to Pew Research, people have termed the increase in tipping “tipflation” and 72 percent of American adults say that tipping is expected in more places than five years ago. However, this “tipflation” leaves holes in the expectations surrounding tipping. The new touchpads in food and retail places often give the option for a tip or even place a default tip on purchases. There is often confusion about unclear standards surrounding tipping. For example, Pew Research also states around two-in-ten Americans (21 percent) say tipping is more of a choice, while 29 percent say it’s more of an obligation. The largest share (49 percent) says it depends on the situation, underscoring the lack of a single set of rules or expectations.

Many states allow employers to claim a tip credit. This means that restaurants and other businesses pay less than the minimum wage, so long as the tips make up for or exceed the difference. However, California banned this practice, so all tips to employers are in addition to the minimum wage. Given this, being prompted for a tip on a touchpad often feels unnecessary. Tips come from a mindset that exceptional service is rare and therefore should be rewarded as such. Do people have to be tipped to do their jobs? It establishes the attitude that employees being kind, helpful, and professional to their customers is not the minimum expectation. 

Additionally, there is a sense of shame when not tipping that could be avoided. The expected tip at restaurants has increased from 15 to 20 percent; for an expensive meal, this tip can represent a significant amount of money. According to a report from PYMNTS.com and Lending Club, “What was once a question of etiquette is becoming for many Americans a question of affordability. Inflation still lingers, and just last month nearly two-thirds of Americans reported they’re already living paycheck to paycheck.” Because of the already inflated cost of purchases, businesses must consider whether or not the tipping prompt is truly benefiting their service as a whole: is it adding money, or is it causing discomfort and irritation among customers? If these changes are considered, it will help create a more standard, achievable, equitable for U.S. consumers.

(Sources: CNBC, Pew Research Center, Seven Shifts)

Categories: Opinion

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