Tipping culture is exhausting consumers

Have you ever been asked to tip at a grocery store? A repair shop? An automatic carwash? You’re not alone.

Consumers in the US are feeling the pressure to tip in more situations than ever before, and it’s coming at a time when many people are trying to curb their spending. Popmenu’s latest study of 1,000 U.S. consumers finds that tipping fatigue is real and  getting worse—a concern for both restaurant workers and their employers who need to attract and retain them.

Consumers want a change

On average, consumers said they have tipped for different services when they didn’t think it was warranted on 40 occasions. It’s no wonder that 60% of consumers say they are fed up with being asked to tip for different services at various establishments—compared to 53% last year.

“The continued squeeze on consumer bank accounts is impacting restaurants and other industries that are heavily reliant on tips,” said Brendan Sweeney, CEO and Co-founder of Popmenu. “Not only are they dealing with heightened competition for guests, they have to work even harder for the tips that account for the majority of their income.”    

Tips for restaurant servers and delivery drivers are on the decline

During the pandemic, consumers rallied around restaurants and provided more generous gratuities to support restaurant workers. Now that the industry is back to operating without restrictions and household budgets are tightening in the wake of prolonged inflation, consumers are being mindful of how much they’re tipping:

• 38% of consumers tip servers 20% or more; last year it was 42%, and the year before was 43%.
• 30% of consumers tip 10% or less, which is a significant jump for the 19% of the previous two years.
• 3% of consumers don’t tip at all, compared to 1% in 2022.

Similarly, tips for delivery drivers have dipped since the height of the pandemic:

• Only 19% of consumers tip delivery drivers 20% or more; last year it was 26%, and the year before it was 32%.
• 42% of consumers tip delivery drivers 10% or less, a large increase from 32% last year and 27% the year before.
• 11% of consumers don’t tip drivers at all, more than double the 5% who said the same in 2022.

The issue is complex because most consumers want the restaurant staff to get fair compensation, but they are tired of constantly being asked to tip for every service. In fact, 61% of consumers are willing to pay more for restaurant meals to facilitate higher wages for staff and eliminate tipping altogether.