Waiter standing in a small restaurant smiling and handing a credit card payment scanner to a customer whose hands appear in the shot
Source: iStock | Ridofranz

Do Foodservice and Delivery Businesses Need to Ditch Tipping?

Americans are growing weary of being asked for tips at every turn. That’s the conclusion of two new and separate studies on the subject.

Sixty-six percent of Americans say they “always” tip wait staff at sit-down restaurants, down from 73 percent last year, 75 percent in 2021 and 79 percent before the novel coronavirus pandemic, according to Bankrate. Five percent of diners never tip and 12 percent only do it sometimes.

The survey of 2,437 adults commissioned by YouGov found that food delivery workers also see a smaller percentage of customers giving tips. Fifty-nine percent always tipped drivers in 2021. That has dropped to 50 percent today. Seven percent said they never tip drivers and 18 percent only do it sometimes.


Only 32 percent of those surveyed always (13 percent) or most of the time (19 percent) give a tip when picking up takeout orders. Thirty-five percent of Americans never tip when picking up takeout and 32 percent only sometimes give a tip.

Thirty percent of those surveyed said that the U.S. tipping culture has gotten out of control and 32 percent expressed annoyance at seeing tip prompt screens when paying for an order. Eighteen percent said they tip less when seeing prompts. Nine percent tip more.

Forty-one percent believe that employers should pay their staff more rather than have them depend on tips. Of course, only 16 percent said they would pay more for their orders if businesses got rid of tips.


A survey of 780 U.S. adults by Capterra found that most are unhappy when point-of-sale devices prompt them to tip the staff.

Fifty-three report having come across a tip screen at a business that didn’t previously ask for tips. Twenty-one percent have encountered tip screens at a retailer and 10 percent have been asked to add tips at a convenience store or gas station.

Half of those surveyed said they felt manipulated into giving a tip and 75 percent do not know where their tips are going.

Discussion Questions

DISCUSSION QUESTIONS: Will tipping fatigue get to the point where foodservice and delivery drivers must look for work in other businesses? Do companies need to develop a compensation model other than tips?

Poll

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BrainTrust

"The danger lies in being asked to tip when all the cashier does is ring up the sale. That’s what’s overwhelming."
Avatar of Georganne Bender

Georganne Bender

Principal, KIZER & BENDER Speaking