Consumers experience ‘tipping fatigue,’ averaging less than 20% for service employees
Yahoo Finance Live anchors examine trends in how American consumers are tipping service workers in the late-pandemic.
Video Transcript
SEANA SMITH: All right. A new survey out revealing how people are tipping during the time of economic uncertainty, of course, as they face sky high prices. This year, 43% of consumers are tipping servers 20% or more. This is according to the latest data from pop menu. And putting this in perspective, that's down from 56% a year ago. And Dave, also digging a little bit deeper into those numbers, it's not just in service, or in restaurant service. 32% of consumers typically tip delivery drivers 20% or more. That's down from 38% of consumers last year.
So not as big of a drop when you take into account the delivery drivers. But still, we're seeing people pull back on spending, obviously a sign of the times that we are in, and that they are facing higher prices in almost every aspect of their lives. I don't think these results come as a huge surprise.
DAVE BRIGGS: No, I'd agree with you. There's the list of the top most generous tippers in the country, San Francisco one, Austin two, Columbus, Ohio, Louisville, and Nashville rounding out the top five. If you're wondering, New York City did not make the top 12. I think it's part of what you said. It's also tipping fatigue. And I feel bad for the servers of this country who really rely on those tips. Most of them make two, three, maybe even four bucks an hour. And they only get to pay-- get minimum wage because of tips.
But the tipping fatigue in this country, because everywhere you go, you run your credit card, and it gives you that option for a minimum of 15%. In most cases, you pay for a black coffee, Rachelle, I don't want to tip you 20%. But I think all of this gives you tipping fatigue because you're supposed to just dish it out everywhere. And to Seana's point, we do. Budgets are stretched.
RACHELLE AKUFFO: It's true. I mean, when you think of inflation, when you think of the things that you're already buying going up, it does make you feel like you should be a little bit tighter when it comes to tipping, even though obviously, that has nothing to do with what the restaurant is charging for some of their goods and services. I know especially during the peak of the pandemic, when a lot of these people, especially delivery drivers, really on the front lines. And we did see some of those images going viral of some of these orders really stacking up to the side for people who didn't give a tip.
Because people are doing your service. This is for your convenience. I still tip the 20%. I feel like it's the right thing to do. But to each his own. You do what you can do with your budget. So I do understand.
DAVE BRIGGS: Do you tip it on a to-go order?
RACHELLE AKUFFO: I tip on a to-go order as well?
DAVE BRIGGS: 20%?
RACHELLE AKUFFO: No, if I'm picking it up, I tip less. But if a person is delivering it to me, I keep that 20%.
DAVE BRIGGS: I agree. I agree with Rachelle. I do not want to tip 20% when I'm picking up the food.
SEANA SMITH: Yeah, no, no. I think--
DAVE BRIGGS: I give them a tip.
SEANA SMITH: Yeah, I think if we give them tip, it also depends if they are delivering it too. I don't know. I also think a lot of people maybe won't tip 20%, but they'll tip 10% or 15% a lot of times. That's-- I think people understand.
DAVE BRIGGS: Sounds like there's agreement on that.
SEANA SMITH: Yes. We're all in agreement here. Rachelle, I thought you were going to say 20% on takeout orders too. I was going to say--
DAVE BRIGGS: Some do. Some do.
SEANA SMITH: I need to change my habits here.
RACHELLE AKUFFO: Not with these gas prices. Not with these gas prices. I've driven all the way there.
