Americans are already coping with elevated prices thanks to inflation. So often it feels particularly egregious when they’re asked to tip on top of that — sometimes 20% or more — at seemingly random places like the grocery store or fast-food counter. The increased pressure to tip in evermore scenarios is leading some folks to draw the line. A new survey from Upgraded Points, a credit card rewards site, shines light on where, exactly, most Americans are comfortable skipping the tip.
In the survey, which was based on responses from over 3,300 Americans, 90% of people said tipping has gotten out of hand. More than half said that being prompted to tip by a screen outright angers them.
Where people hate tipping the most
The survey suggests that Americans tend to skip tipping at businesses that prioritize fast-paced service and minimal interaction with the workers. That means people are least likely to tip at the car repair shop, sporting events, fast-casual restaurants, and on food pickup orders. On the other hand, Americans said they are most likely to tip for food delivery, ride-sharing, and grocery delivery services.
Upgraded Points also analyzed how residents of different states tip. Different parts of the country have very different tipping habits. About 72% of residents in Vermont tip across the board, including at auto shops, fast-casual restaurants, coffee shops, and more. Just over 70% do the same in Rhode Island. In terms of tip skipping: Gratuity is least prevalent in California, with 56% of residents saying they tip. In Utah, 57% of residents frequently tip.
Why do Americans tip so much?
Tipping is ingrained in America’s economic DNA and became the norm after the U.S. Civil War when formerly enslaved Black people were integrated into the workforce. Fast forward nearly 160 years, about 4 million employees still make most of their earnings through tips, according to the Department of Labor. The rise of tip-reliant gig workers has further increased this number, especially during the COVID-19 crisis.
The pandemic ushered in a “new expectation of higher tipping and more frequent tipping.” Businesses began to reopen, and contactless and digital payment options quickly took over, making explicitly asking for tips automatic and less awkward. According to a Pew Research survey from last November, 72% of Americans said that tipping is expected in more places these days.
The antiquated tip jar has become an automated, individualized prompt at the end of every order, beckoning customers to tip 18%, 20%, or even 25% on their purchase before they’ve even enjoyed it. This new norm has shifted tipping culture dramatically.
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