Americans Divided and Confused Over Tipping Practices, According to Pew Research Center Study

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ICARO Media Group
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09/11/2023 21h27

In the United States, the state of tipping is causing division and confusion among Americans, as revealed by a new study conducted by the Pew Research Center. The study, published on Thursday, highlights the lack of consensus regarding when and how much to tip, with many individuals expressing dissatisfaction with recent trends such as added service fees and suggested tipping amounts.

Drew DeSilver, the senior writer of the report, stated that the absence of clear rules regarding tipping in American society is not surprising. He compared it to traffic lights where everyone knows that red means stop, highlighting the ad hoc nature of the tipping regime.

One prevalent trend that seems to be exacerbating confusion is the proliferation of added service fees in various establishments, including coffee shops and takeout spots. With this phenomenon, known as "tipflation," an overwhelming 72 percent of people feel that tipping is now expected in more places compared to five years ago.

The introduction of "service charges" by restaurants and other businesses, aimed at covering higher costs without increasing prices, has also garnered opposition from a significant majority. Approximately 72 percent of people oppose these charges, compared to only 10 percent who express support.

Additionally, suggested tip amounts displayed on touch-screens at takeout spots or printed on bills have caused further controversy. While 40 percent of Americans oppose these suggestions, 24 percent favor them. The remaining 33 percent neither oppose nor favor them.

Despite the expanding opportunities to tip and the presence of prompts, confusion still prevails regarding whether customers should leave gratuities and how much they should be. Only 34 percent of U.S. adults find it "extremely" or "very" easy to determine when to tip for different services, and a similar proportion feel the same way about knowing how much to tip.

Interestingly, the study found that higher income and more education do not necessarily alleviate confusion over tipping etiquette. Individuals with higher incomes and more education are in fact more likely to express uncertainty about tipping practices.

Moreover, the Pew survey reveals a significant divide among Americans regarding their perceptions of tipping as an obligation or a choice. While 29 percent consider tipping obligatory and 21 percent view it as a choice, 49 percent believe it depends on the situation. Younger, wealthier, and more highly educated individuals are more likely to consider tipping an obligation.

Advancements in technology, such as delivery apps and digital payment options, have contributed to this uncertainty. While convenient, these technological advancements have left consumers questioning whether they are expected to tip in such scenarios.

In terms of actual tipping behavior, it appears that many Americans are not particularly generous. The standard recommended tipping rate has increased from 15 percent to 20 percent in recent years, but the Pew poll suggests that not everyone adheres to this. In a scenario where the food and service were deemed average but not exceptional, 57 percent of people stated they would tip 15 percent or less, while 2 percent said they would leave nothing. Just a quarter of respondents indicated they would leave 20 percent or more.

The survey findings also indicate that wealthier individuals tend to be better tippers, while older people are slightly more likely to tip 15 percent or less, potentially reflecting a carryover from previous tipping standards.

It is not only customers who express dissatisfaction with the tipping system. Labor activists argue that the current system, which allows employers to pay workers who receive tips a lower hourly wage than the standard minimum, perpetuates inequities and leaves workers vulnerable to employer whims. They also contend that relying on tips makes female workers, who make up the majority of the tipped workforce, more susceptible to sexual harassment and abuse from customers and managers.

The Pew Research Center survey was conducted from August 7 to 27, gathering data from 11,945 U.S. adults through Pew's American Trends Panel. The margin of sampling error for the survey is plus or minus 1.4 percentage points.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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