Americans Are Exhausted by Tip Culture: Kiplinger Economic Forecasts

As prompts for gratuities pop up everywhere, adults in the U.S. report tip fatigue, and a majority of Americans have a negative view of the practice.

picture of a tip with a restaurant check
(Image credit: Getty Images)

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. 

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Sean Lengell
Associate Editor, The Kiplinger Letter

Sean Lengell covers Congress and government policy for The Kiplinger Letter. Before joining Kiplinger in January 2017 he served as a congressional reporter for eight years with the Washington Examiner and the Washington Times. He previously covered local news for the Tampa (Fla.) Tribune. A native of northern Illinois who spent much of his youth in St. Petersburg, Fla., he holds a bachelor's degree in English from Marquette University.