Murray, KY – Americans are facing a new trend of increased tipping requests, with many feeling overwhelmed by the rising trend of “tipflation.” Tipping culture has seen a significant surge, particularly since the onset of the Covid-19 pandemic, according to Professor Ismail Karabas from Murray State University.
Karabas highlighted how the pandemic accelerated the shift towards digital payment systems, leading to an increase in tipping requests through point of sale devices. Companies like Square, Toast, and PayPal now play a pivotal role in the payment industry, integrating tipping prompt devices at the end of customer interactions in various establishments.
The proliferation of tipping prompts has extended beyond traditional venues like restaurants to include cafes, chain restaurants, and other businesses not typically reliant on tips. This development has reshaped the landscape of tipping practices, with some companies like Square and Toast actively driving this evolution by incorporating tip requests into their software.
While businesses may benefit from increased tipping prompts in terms of employee salaries and reduced turnover rates, there is a potential downside. Karabas warned that excessive tipping requests could lead to customer irritation and decreased patronage, as evidenced by a study conducted at a quick-service restaurant.
Looking ahead, Karabas predicted that tipping prompts may continue to expand unless there is government intervention or regulation. Despite some customer frustration at the proliferation of tipping expectations, the additional revenue generated from tips can provide much-needed support to employees.
A recent study revealed that over three-quarters of Americans believe tipping expectations have become excessive, particularly with the increasing presence of gratuity requests at self-service kiosks and convenience stores. As a response to this trend, some customers are opting to pay with cash to avoid being prompted to tip.
As the debate around tipping culture continues, businesses and consumers alike are grappling with the implications of this evolving practice. While tipping can provide a financial boost for workers, the saturation of tipping prompts raises questions about customer satisfaction and industry norms.