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Tipping culture under fire as a new survey claims businesses are using it to shift the burden of wages onto customers

Do you have 'tipping fatigue'?

Americans are absolutely fed up with tipping culture, and a new survey just dropped some big news about why. It turns out nearly nine in 10 people think the whole thing is “out of control”! A whopping 83% of Americans are even backing a ban on those automatic service charges that pop up sometimes.

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According to Fox News, the survey, conducted by WalletHub, revealed that a significant number of people, three in five Americans actually, believe businesses are swapping out employee salaries for customer tips. That’s a pretty strong sentiment, and it really highlights why so many are feeling “tipping fatigue.” 

According to Chip Lupo, an analyst at WalletHub, tips have gone way beyond the usual spots like sit-down restaurants and hair salons. He said it’s everywhere you look now, and that’s a big part of the frustration because people don’t know who to tip or how much anymore.

Restaurant owners have their own take on tipping 

While consumers are feeling the pinch, some restaurant owners and industry experts have a different take. Christopher Dietz, chief financial officer of Triple T Hospitality Group, explained that tipping isn’t meant to replace wages. He sees it as a way to reward exceptional hospitality and allow skilled service professionals to earn more per hour than what restaurants could typically afford given their tight margins. 

Michelle Korsmo, president and CEO of the National Restaurant Association, shared some research that supports this, noting that tipped servers can earn a median of $27 per hour. She said this earning potential, along with flexible schedules, is a major reason why people choose careers in restaurants.

On the other hand, some owners are wary of doing away with tips entirely. Vicki Parmelee, who owns Jumby Bay Island Grill in Jupiter, Florida, mentioned she’s skeptical of a “no-tip standard,” which often means mandatory service fees. She feels it removes the incentive for servers to be super attentive and provide extra-good service. 

Etiquette experts are also weighing in on the issue. Jules Hirst, owner of Etiquette Consulting Inc., agrees that tipping is, in some ways, out of control. She has a great point that you shouldn’t be tipping when you’ve grabbed your own water from the refrigerator, for example. Hirst stressed that tipping should be reserved for someone who goes above and beyond in service for you, not just for every single transaction.

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Diane Gottsman, owner of the etiquette-focused Protocol School of Texas, advises that if you’re just having a simple exchange, like buying a cup of coffee, you should feel totally comfortable hitting “skip” or “no tip” if the option comes up. Not every interaction needs a gratuity. However, Gottsman also pointed out that restaurant servers generally have a lower base salary, so if tipping were to be banned, their hourly wages would definitely need to increase. 

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Terrina Jairaj
A newsroom lifer who has wrestled countless stories into submission, Terrina is drawn to politics, culture, animals, music and offbeat tales. Fueled by unending curiosity and masterful exasperation, her power tools of choice are wit, warmth and precision.

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