Have you noticed how tipping seems to be everywhere you go? I’ve even started seeing options to tip online when booking a hotel or when making purchase! Is it just me or does anyone else think this is going too far? Today I need to get this off my chest since I don’t want to feel guilty anymore when I don’t give someone a tip for just doing their job. So lets dive in and try to understand more about our tipping culture here in the United States.
United States Tipping
- History: Tipping has been around in the United States for centuries, and it has become deeply ingrained in American culture. In the early days of the republic, tipping was seen as a way to show appreciation for good service. Over time, tipping became more and more expected, and it is now seen as a way to ensure that service workers are fairly compensated for their work.
- The tipping credit: In the United States, tipped workers are allowed to be paid less than the minimum wage, as long as their tips make up the difference. This is known as the “tipping credit.” The tipping credit varies from state to state, but it is typically around $3.00 per hour. This means that tipped workers in the United States are often reliant on tips to make a living.
- Social pressure: There is a lot of social pressure to tip in the United States. People are often seen as rude or cheap if they do not tip, even if the service was not good. This social pressure can make it difficult for people to resist tipping, even if they do not feel like it is fair.
There are a number of arguments against tipping. Some people argue that tipping is unfair, as it means that service workers are paid differently depending on the generosity of their customers. Others argue that tipping encourages discrimination, as it can lead to service workers being tipped more or less based on their race, gender, or appearance.
Despite the arguments against tipping, it is unlikely to disappear anytime soon. Tipping is simply too ingrained in American culture. However, there are a number of things that can be done to make tipping more fair and equitable. For example, businesses could raise prices to cover the cost of paying tipped workers a fair wage. And policymakers could consider legislation that would make it illegal for businesses to pressure customers to tip.
How Some Other Places Tip
Tipping customs vary widely from country to country. In some countries, tipping is expected and considered rude not to tip. In other countries, tipping is not expected and may even be considered insulting.
Here are some general examples of tipping customs in various countries:
- United Kingdom:
- Tipping in the UK is customary but less prevalent compared to the United States. It is common to leave a gratuity of around 10-15% in restaurants if the service is satisfactory.
- In pubs or bars, customers may round up the bill or leave some change as a tip.
- Some restaurants may include a service charge in the bill. In such cases, additional tipping is not expected unless you wish to show extra appreciation for exceptional service.
- France:
- In France, a service charge called “service compris” is typically included in the bill, which covers the tip. However, it’s customary to round up the total amount or leave a small additional tip as a gesture of appreciation.
- In upscale restaurants, it is common to leave a larger tip, usually around 5-10% of the bill, for exceptional service.
- When receiving services like taxi rides or hotel stays, rounding up or leaving small change as a tip is customary.
- Japan:
- Tipping is not a part of Japanese culture and can be considered rude or inappropriate. Excellent service is expected as standard, and attempting to tip might even cause confusion or embarrassment.
- Instead of tipping, expressing gratitude and appreciation through a polite bow or saying “arigatou gozaimasu” (thank you very much) is the customary way to acknowledge good service.
- Australia:
- Tipping in Australia is not as common or expected as in some other countries. However, it is becoming more prevalent in tourist areas and upscale establishments.
- If you receive exceptional service in a restaurant, it is customary to leave a tip of around 10% of the bill.
- In cafes or casual eateries, tipping is less common, and patrons often round up the bill or leave small change as a gesture of appreciation.
- China:
- Tipping is generally not expected in China. In fact, it can sometimes be seen as rude or confusing.
- In upscale hotels or international establishments, a service charge may be added to the bill. Otherwise, tipping is not a common practice.
- If you wish to show appreciation for exceptional service, it’s better to offer a sincere thank you or compliment rather than leaving a monetary tip.
What is Going on with Tipping
I’ve been noticing articles about Americans having “Tipping Fatigue”. According to Bankrate, the majority of Americans, specifically two-thirds, hold an unfavorable opinion regarding tipping. I think a large part of this is due to Tipping inflation, also known as tip creep. This is the phenomenon of rising tip amounts over time. This has been due to a number of factors, including:
- Increasing costs of living: As the cost of living rises, so too does the amount of money people are willing to tip. This is especially true for tipped workers, who often rely on tips to make a living.
- Changes in tipping culture: Tipping culture has changed over time. In the past, tipping was seen as a way to show appreciation for good service. Today, tipping is often seen as an expected part of the cost of dining out or receiving other services.
- Digital payment methods: Digital payment methods, such as credit cards and mobile payments, make it easier for customers to tip. This can lead to higher tip amounts, as customers are less likely to round down their bill when they are using a digital payment method.
Tipflation can have a number of negative consequences. It can put a strain on consumers’ budgets, as they are forced to pay more for goods and services. It can also lead to resentment among tipped workers, who may feel that they are being taken advantage of.
There are a number of things that can be done to address tipflation. Businesses can raise prices to cover the cost of higher tip amounts. Customers can choose to tip less, or they can choose to tip only for exceptional service. Tipping guidelines can be updated to reflect the rising cost of living. And policymakers can consider legislation that would make it illegal for businesses to pressure customers to tip.
Tipping inflation is a complex issue with no easy solutions. However, by working together, we can find ways to address this problem and ensure that tipped workers are fairly compensated for their work.
Here are some additional thoughts on tipping inflation and how to reduce what you pay in tips:
- Not Mandatory: It is important to remember that tipping is not mandatory. Customers are free to tip whatever amount they feel is appropriate.
- Quality Based: Tipping should be based on the quality of service, not the cost of the meal. A server who provides excellent service deserves a larger tip than a server who provides mediocre service.
- Self-Service: Look for self-service options where tipping is not expected or customary. This could include self-checkout at grocery stores, buffets, or fast food establishments.
- Takeout or Delivery: When ordering food for takeout or delivery, tipping may not be necessary or expected. Check with the restaurant to confirm their policy. However, if you receive exceptional service or if it’s a small, local business, you may still consider tipping as a gesture of appreciation.
- Splitting the Bill: When dining with a group of friends or colleagues, consider splitting the bill evenly. This way, the total tip amount is divided among all participants, reducing the individual burden.
- Choose Lower-Cost Establishments: Opt for restaurants, cafes, or bars with lower menu prices. Typically, tips are calculated as a percentage of the bill, so dining at less expensive venues will naturally result in lower tip amounts.
- Avoid Additional Services: In some situations, additional services such as valet parking or coat check may require tipping. If you want to reduce your tip expenses, consider avoiding these optional services or handling them yourself.
- DIY: Instead of relying on service providers, try doing certain tasks yourself. For instance, wash your car at home instead of going to a car wash that requires tipping.
- Understand Local Customs: When traveling internationally, familiarize yourself with the tipping customs of the country you’re visiting. In some places, tipping may not be expected or may be much lower than what you’re used to.
So have we gone too far with tipping in the United States? Ultimately, this question is subjective and depends on individual perspectives. I personal prefer the non-tipping cultures of other countries with the prices baked in to the cost of service. I don’t like feeling the pressure of having someone standing over me to see if I’m going to leave a tip, which then tends to cause me to pay more than I probably should. But I get not everyone feels that way. What is your preference?
