The tipping culture has significantly changed during the pandemic. With many people struggling to make ends meet, tipping became a way of supporting local businesses and their employees. This was understandable, and many consumers supported this as a way to practice solidarity. However, this has also resulted in guilt-induced tipping culture, causing exhaustion among modern customers.

The Guilt Tip

In the past, tipping was only expected in restaurants or other designated service areas. Now, we often face tip suggestions when doing simple things like ordering coffee or food through mobile apps. That moment when the person at the counter flips their tablet and asks you how much you want to tip makes this suggestion for many customers become a mandate. This constant need to tip has created a feeling of awkwardness and guilt among customers struggling to make ends meet. This, unfortunately, is having a negative effect on how consumers view tipping in today's world.

- According to a survey of 2,000 people conducted by Finder.com in 2020, 60% of respondents said they felt obligated or guilty when presented with the option of tipping.

- A survey conducted by Cardify in 2020 showed that nearly half (47%) of respondents would prefer if businesses automatically included an optional service charge on their bills instead of relying on tips.

- In the same survey, 53% of consumers felt uncomfortable or embarrassed when asked to add a tip at checkout.

This tipping culture has a significant impact on service employees. Tipping has become a way to supplement the wages of service employees who are not paid enough by their employers, leading to an expectation of a certain income level. If customers stop tipping, the consequences to the service staff can become catastrophic.

Not About Guilt, But About Appreciation

This now begs the question, what's the alternative?

One of the tenets of brand religion I preach that is highly relevant to the issue of tipping fatigue is the importance of manifesting values through actions. Companies that value their employees and want to promote a healthy working environment should take proactive steps to ensure their workers receive fair compensation. One way to achieve this is to establish a living wage, the minimum amount necessary for workers to meet their basic needs. By providing a living wage, companies can take the burden of fair compensation off their customers and employees. Research has shown that a living wage can lower employee turnover rates, boost morale, and increase productivity, all of which can benefit businesses in the long run. In short, it is not about guilt but appreciation, and companies should lead the way in demonstrating this value.

One company I appreciate is an Italian restaurant in Boston that writes in their bill that tipping is not mandatory because the company owners have decided to pay their employees a just wage. They ask that if you're happy with the service, you can add a tip on top of that. A local coffee shop I patronize has a message on their cash registers saying that the customers are not obligated to tip, but if they want to show their appreciation for kick-ass service, they should tell the barista they want to add a tip.

Ultimately, customers want to feel appreciated for their patronage and experience superior service that warrants a generous tip. According to a study by Upserve in 2019, restaurant-goers are more likely to increase their tip when the server goes above and beyond their expectations, such as suggesting personalized menu items or offering small complimentary gestures. This is a far more effective way to elicit a generous tip and positive customer feedback than guilt-tripping customers into tipping.  Demonstrating appreciation through actions is the key to eliciting generous tips and positive customer feedback, rather than relying on "guilt-tipping."

Customers want a memorable experience and excellent service, and businesses should focus on providing that instead of relying solely on tips to ensure adequate employee compensation. By focusing on service excellence, businesses can create a culture of appreciation and loyalty that will benefit both employees and customers in the long run.