Tech
Why Tipping Is So Out Of Control In The U.S.
Tipping in the United States is on the rise and experts are calling it tipflation. In the fourth quarter of 2022, the number of tips provided at full-service restaurants grew by 17% from the fourth quarter of 2021. Meanwhile the tip frequency at quick-service restaurants rose 16% during the same time period. Experts say that’s because of the newer and sleeker-looking Point-of-Sale, or POS, systems by tech companies like Square, Toast and Clover, who also have increased their sales as a result. The pressure to tip well in front of the tip receiver, before a service is completed, or in front of other customers makes a difference for many. After customers swipe their credit card, they’re typically prompted with three large tipping options on a screen. While businesses can opt out of the tipping feature, most aren’t. In fact, even Starbucks started prompting customers for tips in stores in September 2022. With Americans being pressured to tip higher percentages and for more services, the question is, where is the tipping point?
Chapters:
00:00 — Introduction
02:25 — Why we tip
04:09 — Tipping in 2023
05:45 — Big Tech
09:14 — Tipping point
Produced by: Emily Lorsch
Edited by: Jacob Harrell
Senior Managing Producer: Tala Hadavi
Graphics by: Midnight Snacks
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Why Tipping Is So Out Of Control In The U.S.
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Chapters:
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Producer and Reporter: Katie Tarasov
Edited by: Matt Soto, Andrew Evers
Camera: Eddie Temborski, Robert Lampe, Evan Reinhardt
Senior Director of Video: Jeniece Pettitt
Animation: Jason Reginato, Emily Park
Additional Footage: Cerebras, D-Matrix, Getty Images, Intel, Nvidia, OpenAI, SpaceX, TSMC
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Chapters:
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00:57 – 03:37 Chapter 1 – Republican-aligned donors
03:38 – 05:07 Chapter 2 – Democrat-aligned donors
Reporter: Luke Fountain
Produced and Edited by: Romy Tarantino
Animation: Jason Reginato, Emily Park
Additional Camera: Macklin Fishman, Andrew Evers
Supervising Producer: Shawn Baldwin
Additional Footage: Getty Images
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About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC’s new online course, How To Talk To People At Work, expert instructors teach you how to use everyday conversation to gain visibility, build meaningful relationships and advance your career. Sign up now: https://cnb.cx/4sGlSkh
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@zokusharuuku1091
December 23, 2023 at 12:43 am
Honestly tipping for something other than a server feels like it undermines servers. Servers income is completely based on what tips they receive and most work very hard for those tips.
@jonathandl2697
December 23, 2023 at 12:43 am
The tipping should always be after and not before the service. Asking before is disrespectful to the consumer since you haven’t even done anything to demonstrate you deserve a tip. I am not tipping you to do your job. I am doing it to say thank you for going above and beyond (if you did).
@russnaylor5017
December 23, 2023 at 12:43 am
PEOPLE WHO LIVE ON A GOVT PENSION ….. CANNOT AFFORD TO TIP !!!!!!!!!!!!!!!!
AND THE POSHEST PLACE THEY EAT AT APPLEBYS & CRACKER BARREL , ETC !!!!
THE CHEZ JOEY CROWD CAN EASILY DO THEIR 25 % !!! THE OLD CANUCK .
@1Bohimyme
December 23, 2023 at 12:43 am
I don't tip on the card only cash, THE WAITER AND QUILITY OF FOOD dictates the tip amount, Restaurants only no fast food no coffee shop
@SabrSuave23
December 23, 2023 at 12:43 am
I tip, and I tip in cash only.
@gapcityracing6086
December 23, 2023 at 12:43 am
Only should be tipping your driver or server, I’m not tipping if your getting a a hourly wage I used tip until every single place is asking for it now
@mikerios1065
December 23, 2023 at 12:43 am
If you don't tip before you get your food, the kitchen will know… before they prepare your food. Tip or risk your food getting spit on.😀
@SwimSweetie100
December 23, 2023 at 12:43 am
I bought a lemonade at the mall. It was $4 which was insane itself and then they wanted a tip. Wtf
@seanquarles7742
December 23, 2023 at 12:43 am
On an average day I see a request for a tip at least 3 to 4 times. It's ridiculous.
@user-hn7mq8fs3k
December 23, 2023 at 12:43 am
If you’re not a waiter or waitress serving me a meal in a restaurant, you’re not getting a tip.
@salestrehanecarpentry5883
December 23, 2023 at 12:43 am
We made a decision that we pick up food we order, and only tip at restaurants where they actually serve you. I refuse to tip on a $3 small black coffee. And ill stare you right in the eye as i hit "no tip" to make sure you feel awkward
@luckymoe91
December 23, 2023 at 12:43 am
It's ridiculous. Stop tipping for normal (or even bad) service.
@MsTambri10
December 23, 2023 at 12:43 am
I have a limit when it comes to tipping. At a major restaurant and the server is doing an excellent job, then I’ll tip pretty good. When a server isn’t doing a very good job, the tip is going to be low.
@littlejoe9381
December 23, 2023 at 12:43 am
I thought a tip was supposed to be for good service and something the customer chooses to do. I do not like when you make your order and are expected to tip before anyone even begins to make your food. I hardly ever eat out just for health reasons. I make my food at home so that I can control what goes in it. If I go to Sonic and order a sweet tea, they ask if I want to tip. No, I don’t. Then , on the menu screen they expect you to confirm wether or not you are tipping and how much.
@wrathop274
December 23, 2023 at 12:43 am
Wtf dude I am barely saving enough money to eat once a week out like a good tasty meal do they expect students or low paid people to tip as well, I have never tipped in my life it's not expected here.
@satrasis7340
December 23, 2023 at 12:43 am
Tipping used to be an option to show the server you appreciate them and their efforts. Now it’s for companies to make sure they can keep wages low. Which results in higher profits.
@esangbedopatricia90
December 23, 2023 at 12:43 am
No the wages the employers staying low despite the rising cost of living is out of control. They are the problem.
@Jim-dl5xm
December 23, 2023 at 12:43 am
T.I.P. To
Insure Proper Service.
It's ok to not tip when no extra service was provided. The cooks don't get your tip. Trust me.
@RichMaza
December 23, 2023 at 12:43 am
As for One, who does gig work, like UberEats, Grubhub, Instacart, etc. Where the companies do not pay you a living wage, the tip is the most essential item for survival. If a customer does not tip, there is no incentive to actually do their order because the companies do not pay their employees properly. If tipping was to go away, they would have to actually raise their rates. Which they won’t do. For somebody to say tipping is out of control, you have no idea what it is like when you’re employment, really relies on the generosity of others tipping appropriately. People can pay all sorts of service fees to have things delivered to them, but when it comes to the actual person who might actually be doing the work,to tip them nothing and give it all to the company is shameful. Now, if we were all paid properly, perhaps it would be a different story. But that’s just not how it is. Tip appropriately people. Or don’t use the services.
@jenniferromero571
December 23, 2023 at 12:43 am
Waiters waitresses expect tip. Guess what you dont just deserve a tip.
@jonmunch3298
December 23, 2023 at 12:43 am
It's really simple, I don't go out to eat.
@kimbolek7646
December 23, 2023 at 12:43 am
Stop Tipping in America! Its gotten RIDICULOUS
@joanie3960
December 23, 2023 at 12:43 am
In 1993, as a single mom of 2 young children, I worked at Pasta House as a server for $2.01 an hour. I worked one Sunday morning and a regular church group came in (like 10 people at least at the table).. it was not my section but the server whose section it was asked me if I wanted to service that table. (I thought she felt sorry for me because I didn't have many tables and was trying to help me earn more money).. I took the table because I thought I would get a great tip and desperately needed the money. I got $1 as a tip after serving it. I found out later that this is what they tip no matter who serves them. I made $10 in tips that day and had to pay my babysitter $7 of it.. I went home and laid on my bed and just cried trying to figure out how I was going to pay bills on $3 a day plus my measly $2 and hour for working a few hours. I think tipping should be done away with completely and restaurants should pay their workers a living wage. Yes, the food prices will go up but at least the workers will get a fair wage instead of the restaurants getting off not paying their workers. I think if someone wants to tip for exceptional service for servers who even only make $10 an hour, then great. I am totally opposed to tipping massage therapists who are already charging $45-60 an hour or mechanics (they charge $90-$100 an hour) as well as counter sales and carry out. Sometimes, the tip is bad and not because of the service of the server (in the case where the chef under or over cooked the food or took a long time to make it because they were backed up) or situations like that. I am even reluctant to go to massage therapists now because I don't need to be guilted into tipping someone who is already making $25-$100 an hour depending upon whether they work for themselves or a chain store. Perhaps we need to start services where tips are not necessary or expected like a website where you can order food, book a massage or hotel or whatever through that website and the workers know they are not expecting a tip but MAY still receive one.
@aliozanerbektas
December 23, 2023 at 12:43 am
I think I'm gonna open up a restaurant in the US and its name will be "Cafe De No Tip"
Will you guys be interested? I think sharks will dig it! 🙂
@dipankarpanda8414
December 23, 2023 at 12:43 am
I am from India and good that tip concept is not at all a mandetory here. We can give tip but it is completely on us whether we want to give or not and by default in small restourants, coffie shops most likely no-one give tip.
@Niki-gq1gg
December 23, 2023 at 12:43 am
This is where AI and robots will come in, those don't need tips and will never get tired.
@alissonvonderlane862
December 23, 2023 at 12:43 am
I got asked for a tip on an ONLINE purchase!!! (Mid range jewelry)
@chloehood6355
December 23, 2023 at 12:43 am
I live in the uk and will not tip. Any place thats expecting a tip wont have me as a customer. Here's a tip get paid properly or work elswhere. R
@cynthiamunoz8672
December 23, 2023 at 12:43 am
The one thing that they should add on more about the report is how it’s calculated…fast food has a sign that tells you what they pay employees when they are hiring. Door Dash should have a minimum 10% then let the driver know if they do well the customer can add more. There are times that go all over the city before you get your food cold/hot. DD say they will give you a % back if it’s late but they keep moving the time or cancel your order (off topic).
@patrickturner2417
December 23, 2023 at 12:43 am
I dont think the tipping itself is getting out of hand, I think the "expectation" of tipping is WAY out of hand.
@jb--2023
December 23, 2023 at 12:43 am
Tipping needs to go away.
@louisel.sinniger2057
December 23, 2023 at 12:43 am
I am American and as far as I’m concerned the price of “everything “ has gone up so much I am NOT tipping anymore. Also, I have essentially stopped buying when I am out.
@MrOscar5690
December 23, 2023 at 12:43 am
Tipping is just a way for business owners to make more because now they can get away with paying less.. unless I’m being waited on, or being provided a service. I’m not tipping and that’s coming from that relies on tips…
@mgattini
December 23, 2023 at 12:43 am
unless i am sitting at a table at a restaurant I refuse to tip
@dnali1077
December 23, 2023 at 12:43 am
Ugh this title. Instead of putting the blame on people who rely on tips, the title should be “are employers not paying workers enough to match rising living costs?”
@mblife4078
December 23, 2023 at 12:43 am
Why should u tip when its their job?
@floralee1645
December 23, 2023 at 12:43 am
My problem is all restaurants got more expensive, so the tip that waiter/ waitresses receive also went up. Then how come the range went from 12-18% to 15-22?
@rodrigosegovia3851
December 23, 2023 at 12:43 am
How can I tip you guys for making this videos? 😮😮
@lilenr3499
December 23, 2023 at 12:43 am
being expected to give a tip no matter how the service sucked
@aaronm3213
December 23, 2023 at 12:43 am
"Tip" does not mean "to insure promptness," though this unsupported theory has been bouncing around prior to this video. One could "ensure" promptness, but no one is going around giving "teps". "Insuring promptness" would mean that one is taking out an insurance policy against lack of promptness, which wouldn't make much sense, either. See the "gratuity" page on Wikipedia for a referenced breakdown on what is known about the origin of the word.
@andrewgee5608
December 23, 2023 at 12:43 am
Get rid of tips. Adjust the minimum wage to where it should be with other costs and in line with what complete CEO and executive pay is and ban investment funds and large corporations from owning single family homes nationwide. Force the company's that have already bought up most of the single family home inventory to sell in the next quarter and act like our economy and Democracy exists to prop up the people and not the investor class.
@free_as_a_bird
December 23, 2023 at 12:43 am
It is surely confusing when I order food at Panera, pick it up myself at the counter and bus my own table and am asked to tip. While at the local McDonald's it is virtually the same experience, except they bring my food to the table with absolutely no expectation or suggestion of a tip.
@mrudangtrivedi8510
December 23, 2023 at 12:43 am
No tip, period!
@Pamela-zy7vc
December 23, 2023 at 12:43 am
beach better have my shmoney
@nischalsantooshsinghsairam2278
December 23, 2023 at 12:43 am
Why not just deny tip sometimes?
@richardthomas657
December 23, 2023 at 12:43 am
I just try to use cash at these places so I don’t have to encounter the screen
@leelee12123
December 23, 2023 at 12:43 am
I was in a restaurant in Vancouver and the food was awful , we asked for the bill half way, Waiter wanted a tips, we pointed to the food on the table hardly touched. Can’t tips for bad food.