Cover Story: Is tipping out of hand?
Are you a big tipper and reward good service at a restaurant?
A new survey from Wallethub.com found that 90% of Americans think tipping in the U-S has gotten out of hand.
That's because tipping culture seems to have extended way past giving a few dollars to your waitress or hairdresser.
If you're going anywhere these days and buying something, chances are you're being asked to give a little more.
"Now we're sometimes asked to tip for services we didn't used to do so," said Jeff Hedrich, The Prodigal Company, CEO.
Tipping culture changed during Covid, and at the time for good reason. People were working during dangerous times and we appreciated that.
"Service workers are crucial to how our economy works, how we live our lives. So people started tipping more because they recognized that you are really a value! You're helping make sure the economy is going! I can get food and service for my family," added Hedrich.
But now it seems, businesses are pressing customers to tip everywhere.
Colleen Harding is an etiquette expert from clevelandschoolofetiquette.com
"When somebody puts a keypad into your hand and gives you a choice of 15, 20 or 25% for turning around and pouring a cup of coffee, it is inappropriate!," says Harding.
She says tipping should be reserved for when people go above and beyond.
For instance when you go to a restaurant and sit at a table.
"Someone takes your order and they bring your water and refills your coffee and brings your food and clears it away and takes care of you. That warrants a tip. when someone grabs a sandwich from a window and hands it to you it does not warrant a tip," said Harding.
Colleen worries business owners after covid relied on customer tips for the majority of their employees pay. Even worse, some of the businesses that use those electronic keypads will even take a percentage of the tips to pay for those things.
Ultimately, Colleen says what you should tip is based on service provided.
"I go towards 15% if it's not good. I will always tip, you have to tip. I go to 20-25% if it's really, really good. And remember you do not tip on tax," said Harding.
And if you think tipping is getting out of control, just do what you feel is right and don't feel guilty about it.
"It's important for the consumer to say don't give up your right to determine the amount of tip or if you tip. Just because someone gives you an electronic notecard or pad that says 20%, go 15%, go custom. If you didn't get good service, let's not reward bad service, right?," said Hedrich.
In addition to restaurants, you should also consider tipping at salons, for food delivery, your housekeepers at hotels and for your taxi/Uber drivers.