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Today: January 23, 2025

Tipping fatigue: Why more businesses are adding gratuity options

Tipping fatigue: Why more businesses are adding gratuity optionsPhoto by Getty Images
December 12, 2024
Sowjanya Pedada - LA Post

NORTHRIDGE, Calif. - The rise in digital payment systems and lingering effects of the COVID-19 pandemic have transformed American tipping culture, leading to widespread consumer fatigue as more businesses adopt tipping prompts, according to a California State University, Northridge professor.

Marketing Professor Nora Moran points to the pandemic as a pivotal moment when consumers began tipping more generously to support essential workers, establishing practices that have persisted beyond the crisis period.

"During the pandemic, it became normal to tip more because people realized the value that essential workers have," Moran said. "While tipping has always been a way to supplement service worker income, it just opened the floodgates. It suddenly became more common to ask for tips in new contexts."

A 2023 Pew Research survey found that 72% of U.S. adults report being asked to tip more frequently than in previous years, with tipping prompts now appearing at self-checkout kiosks, grocery stores, and fast-food establishments.

According to Moran, the widespread adoption of digital point-of-sale systems has amplified this trend, creating new pressure points for consumers.

"Many companies have implemented point-of-sale systems. Since most people pay with cards, these systems are easy, fast, and efficient," Moran said. "However, they often give consumers an option to tip, and people may feel pressured or confused about why they are being asked to tip in new situations."

Moran noted that rising costs due to inflation have heightened consumer sensitivity around increased tipping requests.

The shift has sparked broader discussions about service worker compensation. Some consumers view expanded tipping as support for low-wage workers, while others express frustration at the growing expectation to tip across more services.

"This is still an opportunity to educate people about the economic realities that service workers face," Moran said. "Hopefully, conversations around tipping norms can draw attention to these bigger issues and initiate discussions on how to address those issues in a fair manner."

Related Articles:
1. Tipping etiquette and norms are in flux − here’s how you can avoid feeling flustered or ripped off

2. From Tipping to 'Healthcare' Fees: LA Restaurants Are Causing Controversy

3. In Nevada, where hospitality rules, tipping is not the issue

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