Tipping is experienced very differently around the world. In Japan it can be offensive, as it is assumed that good service is an obligation that comes with salary. In Europe, tips are usually associated with gratitude for good treatment and are relatively low anyway. However, in the United States, they are virtually mandatory because they make up a significant portion of compensation for workers in hospitality and other industries. The general feeling among Americans is that this obligation is becoming increasingly important and consumers are increasingly clueless about how much to tip and when.
The phenomenon of tipping has its roots in 16th-century England and was more common in Europe than in the United States until the 19th century. But the tide turned so much that by the beginning of the 20th century, waiters in popular restaurants in the United States had to pay the owner (and thus collect tips) to work there. Retaliation against customers who didn’t leave their money was varied, and in Chicago police dismantled a network that poisoned those who didn’t tip.
Unwritten rules create legal uncertainty. When there is no law, customs prevail, but when customs change, trouble is guaranteed. A report released last month by the Pew Research Center found that only a third of respondents say it is very easy to know whether they should tip (34%) or how much (33%) for different types of services. as shown by the results of a macro survey to 11,945 people.
The majority (72%) agree that they are increasingly being asked to tip in more places, a phenomenon called tipflation, spurred in part by the pandemic. While in countries with a less established tradition in this regard, such as Spain, the decline in cash payments has had an impact on tips, in the United States it has found a breeding ground for reproduction. Recommended tip screens are proliferating and popping up everywhere: fast food chains, self-service convenience stores, automated car washes, and even in some merchandise stores. Even robots, like one making smoothies in San Francisco, want your tips.
Full table service restaurants are still the kings of tipping. About nine in 10 adults who eat there (92%) say they always or often tip. Compensation of 15% is considered an acceptable minimum, 18% or 20% are more common, although conclusions depend heavily on the guide consulted.
Beyond restaurants, tipping is also very common when visiting a hairdresser (78%), having food delivered to your home (76%), ordering a drink at a bar (70%) or taking a taxi or public transport (61%) %). In contrast, few Americans always or often tip when they buy a coffee (25%) or eat at a fast food restaurant (12%), but payment screens suggest they are doing so more and more often.
To make matters even more complicated, more and more restaurants in major cities such as New York and Washington are adding a surcharge or service charge (which the owners keep) to the bill, to which are then added taxes and the tip (which is sent via… Law to the waiters). Restaurants justify this by citing inflation and laws mandating increases in server pay. To make matters worse, some argue that they charge a surcharge to avoid a price increase. How considerate! You deserve a tip.
Follow all information Business And Business on Facebook and Xor in our weekly newsletter
The five-day agenda
The most important business quotes of the day, with the keys and context to understand their significance.
RECEIVE IT IN YOUR EMAIL
Subscribe to continue reading
Read without limits
_