Customers have been tipping less generously as pandemic restrictions relax.
At the height of the COVID-19 pandemic, when many people where still living in lockdown, many small businesses, especially restaurants, noticed that customers were tipping more generously than usual. The common sentiment at the time was that restaurant staff and delivery workers who were still working at an uncertain time deserved the additional compensation. However, as pandemic restrictions have relaxed and life has returned to some semblance of normalcy, that generosity has dried up.
Do you tip the same you used to? https://t.co/1AVMGQ3WwJ
— NBC10 Philadelphia (@NBCPhiladelphia) September 1, 2022
According to a report from restaurant payment company Toast, restaurant tips, particularly on delivery orders, are down to roughly 14.5% on average. Square, another payment company, noted similar statistics in its tipping studies according to a Wall Street Journal report.
“Part of it is tip fatigue,” Eric Plam, founder and CEO of San Francisco-based startup Uptip, told CNBC.
How much should customers tip for takeout or carry-out coffee? Takeout tips are now down to 14.5% on average, after climbing during the pandemic, Toast found. https://t.co/u4OQN3oJBe
— NBC4 Washington (@nbcwashington) September 1, 2022
“During COVID, everyone was shell shocked and feeling generous,” Plam said. Now, “you are starting to see people pull back a little bit.” Plam noted that point-of-sale tipping, where customers tip ahead of actually receiving their purchase, has become a major sticking point.
“This point-of-sale tipping is what people resist the most,” he said, “compelling you to tip right there on the spot.”
World Leaders Reflect on Passing of Mikhail Gorbachev
Valve Plans to Release Updated Steam Deck in Future
-
Credit: Shutterstock When President Donald Trump unexpectedly announced plans for what he called a “$2,000 dividend” for the majority...
-
Credit: Shutterstock The countdown is on for one of the most closely watched shareholder votes in corporate history. As...
-
Credit: Shutterstock Imagine not having to hunt for groceries after a long day or remember when your phone bill...
-
Credit: Shutterstock Good News for Taxpayers Good news might be on the horizon for taxpayers — especially those with...
-
Credit: Shutterstock The end of quantitative tightening may not be the market boost it appears to be Federal Reserve...
-
Credit: Shutterstock Trade deficits, national debt, and the numbers that don’t add up President Donald Trump recently caused a...
-
Credit: Envato Elements Untouched Money in the Trillions? There’s a quiet giant sitting in the background of the economy...
-
Credit: Shutterstock Trump and Wall Street’s Top Banker Bury the Hatchet—And Your Wallet Might Thank Them In an unexpected...
-
Credit: Envato Elements Will These Cryptos Steal the Spotlight by Year-End 2025? After a wild start to 2025 filled...
-
Credit: Unsplash Why Don’t We Just Tax the Rich? Every year, millions of Americans pay their taxes expecting that...
-
Credit: Unsplash Is the Minimum Wage Livable in The U.S.? The federal minimum wage in the United States has...
-
New tax on foreign investors could shake global confidence in U.S. markets and dampen demand for Treasuries and the...
