Current:Home > Scams"Tipflation" may be causing tipping backlash as more digital prompts ask for tips-DB Wealth Institute B2 Expert Reviews
"Tipflation" may be causing tipping backlash as more digital prompts ask for tips
View Date:2024-12-23 21:38:12
The growth of digital payments, along with the automatic tipping prompts, may be sparking a tipping backlash among Americans, who are suffering from so-called "tipflation."
A recent survey by Bankrate, a consumer financial services company, suggests two-thirds of Americans now hold a negative view of tipping, and the number of people who always leave a tip is declining — even at sit-down restaurants — in just the last two years.
Molly Moon Neitzel, the owner of Molly Moon's Ice Cream Shop in Seattle, shared her frustration with the current tipping culture.
"I have to say I'm highly annoyed at tipping," Neitzel said. "It's really awkward, especially in the counter service interaction, to watch someone make a decision."
"It never feels good," she added.
According to credit card processor Square, nearly 75% of remote transactions in food and beverage now ask for a tip. That includes orders online and at kiosks.
Social media platforms like TikTok are filled with videos of customers questioning the necessity of leaving a tip for small purchases.
However, eliminating tipping practices can be challenging.
Cornell University professor Michael Lynn said research indicates restaurants that replace tipping with higher menu prices often face negative online ratings.
Lynn also noted that technology has made it easier for non-traditional businesses, such as electricians or plumbers, to request tips discreetly through electronic bills, avoiding the potential awkwardness of asking for gratuity in person.
When Molly Moon's ice cream shop used to accept tips, credit card processors benefitted the most due to higher processing fees, Neitzel said.
However, data from the very checkout system that prompted tipping revealed disparities in pay. Neitzel noticed that Black employees were earning less tips than their White counterparts.
"It became clear to us how unfair our total compensation system was," Neitzel said.
As a result, the company made significant changes, now offering a minimum wage of $21 per hour, along with comprehensive benefits such as healthcare, 401(k) and childcare assistance.
To cover the increased costs, prices were adjusted accordingly, but Neitzel said customers didn't end up paying more overall.
"We just shifted how the money came in," Neitzel said.
veryGood! (4935)
Related
- Police cruiser strikes and kills a bicyclist pulling a trailer in Vermont
- Frankie Beverly, soulful 'Before I Let Go' singer and Maze founder, dies at 77
- Flash flood sweeps away hamlet as Vietnam’s storm toll rises to 155 dead
- Why Raygun is now the top-ranked women's breakdancer in the world
- Georgia's humbling loss to Mississippi leads college football winners and losers for Week 11
- A day that shocked the world: Photos capture stunned planet after 9/11 terror attacks
- NFL averaged 21 million viewers per game for opening week, its highest on record
- Rachel Zoe Speaks Out Amid Divorce From Rodger Berman
- Social media star squirrel euthanized after being taken from home tests negative for rabies
- Taylor Swift's response to presidential debate? She quickly endorsed Kamala Harris.
Ranking
- Steelers' Mike Tomlin shuts down Jayden Daniels Lamar comparison: 'That's Mr. Jackson'
- Ex-boyfriend and alleged killer of Ugandan Olympian Rebecca Cheptegei dies
- Mega Millions winning numbers for massive $800 million jackpot on September 10
- Pregnant Margot Robbie’s Pal Shares How She’ll Be as a Mom
- 2 Florida women charged after shooting death of photographer is livestreamed
- New Jersey Pinelands forest fire is mostly contained, official says
- Florida law enforcers are investigating the state’s abortion ballot initiative. Here’s what to know
- Massachusetts man who played same lottery numbers for 20 years finally wins Mega Millions
Recommendation
-
Bohannan requests a recount in Iowa’s close congressional race as GOP wins control of House
-
Poverty in the U.S. increased last year, even as incomes rose, Census Bureau says
-
Apple announces new iPhone 16: What to know about the new models, colors and release date
-
Amid fears of storm surge and flooding, Hurricane Francine takes aim at Louisiana coast
-
Why Suits' Gabriel Macht Needed Time Away From Harvey Specter After Finale
-
Girl, 3, dies after being found in a hot car in Southern California, and her mother is arrested
-
Pharrell as a Lego and Robbie Williams as a chimp? Music biopics get creative
-
Kate Gosselin’s Son Collin Accuses Her of Tying Him Up, Keeping Him in Family’s Basement