The pandemic changed many ways businesses operate, and one big difference is the option to tip during most customer-facing interactions. To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Many Americans have reached a tipping point when it comes to gratuities. Two-thirds of U.S. adults have a negative view of tipping, with 30% saying that tipping culture has gotten out of hand, according to a recent Bankrate survey. 41% say businesses should pay employees more rather than relying on tips, though only 16% say they’d pay more if tipping were eliminated. Nearly one-third are particularly annoyed with pre-entered tipping suggestions on in-store screens or smartphones when paying.
Inflation and general economic unease are likely causes for making folks stingier. But there’s also a trend of fewer people tipping every year. Meanwhile, digital tip requests have expanded to more fast-food joints and elsewhere. As consumers are faced with a variety of new interactions that require gratuities, 15% of people in the Bankrate survey reported feeling confused about how much to tip.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Still, 44% of adults who dine at sit-down restaurants say they tip 20% or more. The most generous generation? Baby boomers. 57% typically dole out 20%.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
Top New Year’s Travel Destinations: Glamorous Cities & Peaceful RetreatsRing in the New Year your way — explore vibrant celebrations or find your peaceful retreat.
-
Jim Carrey Ran Out of Money in Retirement. Will You?Cash-strapped retirees are returning to the workforce. How to prevent becoming one of them.
-
Don't Sleep on Japan's Economic TransformationThe Letter After almost three lost decades, Japan — one of the world's biggest economies — is finally showing signs of life.
-
Start-ups Trying to (Profitably) Solve the World’s Hardest ProblemsThe Letter More investors are interested in companies working on breakthrough science to tackle huge societal challenges. The field of deep tech has major tailwinds, too.
-
Will lower mortgage rates bring relief to the housing market?The Kiplinger Letter As mortgage rates slowly come down here's what to expect in the housing market over the next year or so.
-
The Big Questions for AR’s FutureThe Letter As Meta shows off a flashy AR prototype, Microsoft quietly stops supporting its own AR headset. The two companies highlight the promise and peril of AR.
-
China's Economy Faces Darkening OutlookThe Letter What the slowdown in China means for U.S. businesses.
-
Should We Worry About the Slowing U.S. EconomyThe Letter With the labor market cooling off and financial markets turning jittery, just how healthy is the economy right now?
-
Kiplinger Special: How Businesses Should Budget for 2025Kiplinger Forecasts From fuel to AI software subscriptions, here's what you can expect to pay next year.
-
Intel Braces for an Even Tougher Road AheadThe Kiplinger Letter Amid a long, costly turnaround, Intel resets expectations again. Its new woes raise questions about U.S. industrial policy and global chip competition.
