Tipping Culture in America: Has It Gotten Out of Control?

Tipping culture is a common practice in America, where customers are expected to give extra money to service workers, such as waiters, bartenders, hairdressers, or taxi drivers, as a way of showing appreciation and gratitude.

Tipping culture is also a controversial topic, as it raises many questions and issues about the fairness, efficiency, and morality of this system.

Embarking on the journey to financial independence brings a heightened awareness of every expenditure, tipping included. It’s vital to remember that tipping is more than a transaction; it’s a gesture of gratitude and respect for those who provide services that make our lives easier and more enjoyable.

Upon reaching financial independence, you have the liberty to be more generous, if you choose, particularly by tipping for spectacular service or as a special gesture around the holidays, reflecting your appreciation and financial capability to give back.

In this article, you’ll learn:

• What tipping culture is and how it originated in America
• How tipping culture affects customers and service workers in different ways
• Why tipping culture has gotten out of control and what are the problems and challenges it creates
• How to tip smarter and more responsibly, without feeling confused, pressured, or guilty

What Is Tipping Culture and How Did It Originate in America?

Tipping culture is a system where customers give extra money to service workers, based on the quality and satisfaction of the service.

The amount of the tip is usually a percentage of the total bill, ranging from 10% to 25%, depending on the type of service, the location, and the customer’s discretion.

Tipping culture is prevalent in many service industries, such as restaurants, bars, hotels, salons, or transportation.

Tipping culture originated in Europe in the 17th century, as a way for aristocrats to show their generosity and status to their servants and lower-class workers.

Tipping culture was introduced to America in the late 19th century, by wealthy travelers who wanted to emulate the European customs and manners.

Tipping culture became widespread in America in the early 20th century, as a result of the Prohibition, the Great Depression, and the labor movements, which reduced the wages and rights of service workers, and increased their dependence on tips.

How Does Tipping Culture Affect Customers and Service Workers?

Tipping culture affects customers and service workers in different ways, such as their income, behavior, expectations, and satisfaction. Here are some examples of how tipping culture impacts both parties:

Income

Tipping culture affects the income of both customers and service workers, as it adds to the cost of the service for the customers, and supplements the wages of the service workers.

• For customers, tipping culture can reduce their disposable income, as they have to pay more for the same service, or limit their consumption, as they have to budget for the tips.

• For service workers, tipping culture can increase their income, as they can earn more from the tips, or decrease their income, as they have to rely on the tips, which are unpredictable and variable.

Behavior

Tipping culture affects the behavior of both customers and service workers, as it influences their decisions, actions, and interactions.

• For customers, tipping culture can encourage them to be more generous, polite, and appreciative, as they want to reward the service workers for their work, or to be more demanding, rude, and critical, as they want to get their money’s worth.

• For service workers, tipping culture can motivate them to be more friendly, attentive, and helpful, as they want to please the customers and get more tips, or to be more biased, manipulative, or resentful, as they want to maximize their tips or cope with their frustration.

Expectations

Tipping culture affects the expectations of both customers and service workers, as it creates a sense of obligation, entitlement, and reciprocity.

• For customers, tipping culture can make them feel obligated to tip, as they think it’s the norm, the rule, or the duty, or entitled to tip, as they think it’s their choice, their right, or their favor.

• For service workers, tipping culture can make them feel entitled to tips, as they think it’s their reward, their right, or their necessity, or obligated to tips, as they think it’s their responsibility, their duty, or their debt.

Satisfaction

Tipping culture affects the satisfaction of both customers and service workers, as it affects their perception, evaluation, and feedback of the service.

• For customers, tipping culture can increase their satisfaction, as they think the service is better, the price is fair, or the relationship is positive, or decrease their satisfaction, as they think the service is worse, the price is high, or the relationship is negative.

• For service workers, tipping culture can increase their satisfaction, as they think the tip is generous, the customer is nice, or the work is rewarding, or decrease their satisfaction, as they think the tip is stingy, the customer is mean, or the work is degrading.

Why Tipping Culture Has Gotten Out of Control

Tipping culture has gotten out of control in America, as it creates confusion, frustration, and inequality for both customers and service workers. Here are some of the problems and challenges that tipping culture poses:

Confusion

Tipping culture creates confusion, as there are no clear or consistent rules or expectations for when and how much to tip in different service scenarios. For example, you may wonder:

• Should you tip at a fast-food restaurant, a coffee shop, or a food truck?

• Should you tip before or after tax, or before or after discounts or coupons?

• Should you tip in cash or by card, or by using an app or a website?

• Should you tip a fixed amount or a percentage, and if so, what percentage?

• Should you tip more or less depending on the service quality, the location, or the time of day?

These questions can make you feel anxious, embarrassed, or resentful, as you may not know what to do, or you may feel that you’re doing too much or too little.

Frustration

Tipping culture creates frustration, as it often involves pressure, manipulation, or guilt from businesses or service workers to influence customers’ tipping decisions. For example, you may encounter:

• Suggested tip amounts or percentages, which may be higher than what you would normally tip, or which may not reflect the service quality or value

• Automatic service charges or gratuities, which may be added to your bill without your consent or knowledge, or which may not be distributed fairly among the service workers

• Emotional appeals or stories, which may be used to elicit sympathy or empathy from you, or which may not be true or relevant.

These tactics can make you feel dissatisfied, angry, or avoidant, as you may feel that you’re being coerced, tricked, or guilt-tripped into tipping more than you want or can afford.

Inequality

Tipping culture creates inequality, as it often leads to discrimination, exploitation, or injustice for both customers and service workers based on various factors such as age, sex, race, or appearance. For example, you may experience:

• Biased or arbitrary tipping, which may result in lower or higher tips for certain groups of customers or service workers, regardless of their service quality or value

• Low or unstable wages, which may force service workers to depend on tips for their income, or which may vary widely depending on the season, the day, or the hour

• Lack of benefits or protections, which may leave service workers without health insurance, sick leave, or retirement plans, or which may expose them to harassment, abuse, or theft.

These outcomes can make you feel unfair, resentful, or alienated, as you may face or witness discrimination, exploitation, or injustice in the service industry.

How to Tip Smarter and More Responsibly, Without Feeling Confused, Pressured, or Guilty

If you want to tip smarter and more responsibly, without feeling confused, pressured, or guilty, here are some guidelines, tips, and best practices to help you:

• Research. Before you go to a service establishment, do some research on the tipping culture and norms of that place. You can use online resources, such as TripAdvisor and Tipping.org to find out the average or expected tip amounts or percentages for different types of services, locations, and situations. You can also ask your friends, family, or locals for their advice or experience on tipping.

• Budget. Before you order or receive a service, set a budget for how much you’re willing and able to tip. You can use online tools, such as this Tip Calculator to calculate the tip amount or percentage based on the total bill, the service quality, or your preference. You can also use cash or a separate card to pay for the tip, to avoid overspending or under-tipping.

• Communicate. During or after the service, communicate with the service worker or the business about your tipping intentions and expectations. You can use verbal or non-verbal cues, such as compliments, questions, or gestures, to express your satisfaction or dissatisfaction with the service, or to request or decline a service. You can also use written or digital feedback, such as notes, receipts, or apps, to explain or justify your tip amount or percentage, or to ask or answer any questions or concerns.

Guidelines for Tipping

Calculating the appropriate tip for various services can vary, but here’s a general guideline based on the information I found:

1. Restaurants: 18-20% of the total bill is recommended for restaurant servers.
2. Bars: Bartenders usually receive $1 per drink or 15-20% of the tab.
3. Fast Casual Dining: 10-15% tip for counter service is a kind gesture, though not required.
4. Takeout Orders: Consider a 10-15% tip for take-out orders.
5. Food Delivery: Generally, 10-15% of the total order value is suggested for food delivery services.
6. Coffee Shops: Around $1 for espresso or pour-over drinks; for simpler drinks, rounding up to the nearest dollar.
7. Hotel Housekeeping: A tip of about $2 per day is customary.
8. Hotel Bellhops: $1 to $2 per bag is standard.
9. Valet Parking: $2 to $5 when your car is returned to you.
10. Taxi Drivers: Typically, a 15-20% tip is standard.
11. Rideshare Services: Similar to taxis, 15-20% is recommended.
12. Airport Shuttle Drivers: Tipping is appreciated but not strictly defined; 10-15% can be a good guideline.
13. Tour Guides: 15-20% of the tour cost is a common practice.
14. Hair Stylists/Barbers: A tip of 15-20% of the total service cost.
15. Nail Technicians: Similarly, 15-20% for manicures and pedicures.
16. Spa Services: 15-20% for massages and other spa treatments.
17. Movers: Tipping varies greatly; generally, $20 per mover for a full day’s work can be a guideline.
18. Furniture Delivery: A tip isn’t always expected, but $5-$10 per person can be given for exceptional service.
19. Appliance Delivery: Similar to furniture delivery, a small tip for exceptional service.
20. Room Service: A 15-20% tip on the bill.
21. Concierge Services: $5 to $10 depending on the complexity of the task.
22. Golf Caddies: Around $20 to $50 per bag, depending on the level of service and the prestige of the golf course.
23. Bathroom Attendants: $1 to $2 is customary.
24. Coat Check Staff: $1 to $2 per coat.
25. Pet Groomers: Around 10% of the service cost.
26. Tattoo Artists: Tipping varies; generally, 15-20% of the total cost.
27. Piercing Specialists: A tip of 15-20% of the total cost is a common practice.
28. Event DJs: Tipping varies widely; a standard tip could be 10-15% of the service fee.
29. Wedding Planners/Coordinators: Not always customary, but 10-15% for exceptional service.
30. Parking Attendants: $1 to $2 per car is typical.

Remember, these are general guidelines for tipping and can vary based on service quality, location, and personal discretion.

In some situations, such as with hotel maids or coat check staff, it’s more about a fixed amount per service rather than a percentage of a cost.

Tipping is ultimately a personal choice and should align with your level of satisfaction with the service provided​

Is Tipping Culture Out of Control?

The tipping culture in America, while rooted in tradition and good intentions, has arguably spiraled into a complex, often burdensome practice that confounds both patrons and service providers.

Tipping, initially a symbol of gratitude for exceptional service, has evolved into an obligatory gesture, sometimes overshadowing the actual merit of service rendered.

This obligatory nature of tipping not only places undue pressure on consumers, particularly those from different cultural backgrounds or economic standings, but also perpetuates a system where employers shift the responsibility of fair wages onto the customers.

Furthermore, the variability and lack of standardization in tipping practices across different sectors create inconsistency and confusion.

As we move forward, it’s imperative for both the service industry and consumers to engage in an open dialogue about the efficacy and fairness of this deeply ingrained practice.

Perhaps, it’s time to reevaluate and modernize our approach to tipping, ensuring that it genuinely reflects appreciation for service excellence, rather than an expected supplement to wages.

This shift could pave the way for a more equitable and transparent service industry, benefiting both the hardworking individuals within it and the consumers they serve.