Tipping culture in the U.S. is facing a turning point. Americans are tipping less than they have in six years, frustrated by rising menu prices and an explosion of tip requests at unexpected places. Dubbed “tipflation,” this growing trend is testing the patience of consumers, many of whom are pushing back.
Don't Miss:
- The average American couple has saved this much money for retirement — How do you compare?
- I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?
Why Are Americans Tipping Less?
The average tip at full-service restaurants dropped to 19.3% in late 2024, according to restaurant payment platform Toast. This marks a significant decline from 19.9% in early 2021, when tipping peaked as people showed gratitude during the early recovery from COVID-19 lockdowns.
But with menu prices climbing and digital payment systems prompting tips everywhere—gas stations, coffee shops, even self-checkouts—many customers are saying, “Enough.” A Bankrate survey revealed that 60% of respondents are unhappy with the increase in tipping prompts, and 37% think businesses should pay their employees more instead of relying on tips.
Trending: Are you rich? Here’s what Americans think you need to be considered wealthy.
Customers Are Feeling Pressured
The surge in tip prompts has led to awkward situations. As the Wall Street Journal reported, a customer buying a beer from a self-service fridge in San Diego’s Petco Park was asked to leave a tip, despite no human interaction. Meanwhile, at Newark Liberty Airport, a traveler was prompted to tip 10-20% on a $6 bottle of water, which they called “emotional blackmail.”
Digital tipping systems, while convenient for businesses, are leaving many customers confused and frustrated. Skeptics worry that the money isn't always going to the workers, with less transparency and fewer legal protections for tips made through machines.
See Also: Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
Generational Divide
Generational differences are also fueling the debate. Only 35% of Gen Zers say they always tip restaurant servers, compared to 86% of Boomers. Younger consumers appear to be taking a stand, suggesting employers should shoulder the responsibility of paying fair wages instead of expecting tips to fill the gap.
As one millennial put it in a viral Reddit post: "I am now not tipping for anything but a sit-down meal. And only if they don’t have a ‘service fee.’" Their sentiment echoed across social media, with many users venting frustration over tip prompts at drive-throughs or gas stations.
Rising Prices Add to the Problem
Rising costs are also contributing to tipping fatigue. In Washington, D.C., for example, restaurants raised prices by an average of 9% after voters eliminated the tipped wage system. Many have added mandatory service fees, leaving customers wondering whether additional tipping is still expected. As one server at an upscale Chicago restaurant told WSJ, "I can see tipping culture in the U.S. cracking."
Read Next:
- How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.
- The average 401(k) balance soars to a record-breaking high – Here's how to know if your nest egg is keeping pace.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
