CHICAGO (NewsNation) — Tipping is encountering its own form of inflation, as many businesses have removed traditional tip jars and now credit card kiosks demand that consumers cough up a few extra bucks when they swipe. It’s dubbed “tip creeping.”
Tip creeping seems to be effective in cornering consumers into paying more. Many of the digital kiosks that ask for tips start at 18% or 20% and can go as high as 30%, which is up from the 15% that used to be traditional.
If you’re dining out or grabbing a cup of coffee, how do you know when or if to tip? According to a tipping culture survey, 73% of Americans tip at least 11% more when they pay digitally.
The way consumers tip is broken down into three types of tippers. The “feel-good tipper” usually tips 20% in every situation. Then, there’s the “no tipper,” who feels they paid for their food or goods and aren’t being served and that’s sufficient. This more than likely happens at fast-food establishments.
Lastly, there’s the “guilt tipper.” When they purchase something at the counter instead of at a table, they often feel guilty about not tipping or obligated to do so because they feel they’re being watched and lurked over.
Starbucks recently rolled out a new screen feature that now gives consumers the option to add a tip to their final bill or leave nothing at all before the transaction even goes through. The coffee giant also raised its minimum pay to $15 an hour last summer. Still, its workers aren’t as underpaid as waiters at full-service restaurants.
Cleveland is the top-tipping city in the U.S., according to an AXIOS restaurant trends report. Denver came in at number two followed by Salt Lake City at number three. What consumers tip is at their discretion, but due to the rising costs of just about everything, experts said it’s a good habit to show appreciation to service workers who go the extra mile.