Tipping fatigue is setting in. According to a survey conducted earlier this year by Lightspeed, two thirds of respondents are annoyed at the ever-increasing pressure to
leave tips, and half say that the rise in prices makes it harder to be able to leave tips to start with.
Leaving tips became more common during the lockdowns of 2020 and 2021, as a show of solidarity for those working on the front lines of the service industry, even when not related to actual table service. Such workers risked their health so that customers could still go out for a meal or a coffee, or take it home. The average amount of tips increased by 5% of the price of an order, according to behavioural studies from the University of Guelph. Yet with health risks no longer seen as such a concern for society, the idea of tipping 20% for a filtered coffee is harder for people to understand. Even more so, when you’re picking up pre-packaged food or drinks.
More than half of respondents to a survey conducted in 2023 by Angus Reid said they would prefer paying more, but with tip-included pricing. Yet few restaurants or cafes have made the jump.
At times, the minimum tip customers are prompted for is 18%. Some payment machines don’t even allow clients the option to select a smaller amount, with the only alternative being none at all. If an employee is pouring a cup of coffee a minute and getting nearly 20% of the sale price in tips, they’re making much more than people working in many other professions, and certainly those working in restaurants. Employees in supermarkets or daycares often make barely above minimum wage at best, yet these people are paying more for coffee with these high tip rates. Higher pay for serving coffee than taking care of young children isn’t fair given the level of responsibility and stress.
What’s more, customers begin to resent this type of psychological ploy and are generally less likely to go out. There seem to be fewer of the payment machines demanding a minimum 18% tip now than a year ago, so perhaps owners are beginning to take notice.
The bottom line is that tips as a percentage of orders shouldn’t need to increase – as prices rise, so do the total amounts of tips received. Being seen as greedy may leave those looking for tips worse off.
