MW RIP tipping? Customers complain they spend $150 a year on 'unnecessary' tips as gratuities get out of control.

By Charles Passy

A new survey points to a growing tipping backlash as 65% of Americans say they're fed up with doling out those dollars

The tip screen has become a fact of life at many businesses - and customers aren't crazy about it.

Have Americans reached a tipping point when it comes to tipping?

A new consumer survey from Popmenu, a technology company that services the restaurant industry, suggests as much. The key data point: 65% of Americans said they're fed up with tipping - a notable increase from 2023, when 53% said they had reached that point.

Americans seem to be especially bothered by the fact so many businesses have their hand out for tips, from quick-serve restaurants to dog-grooming establishments and vehicle-repair shops. Consumers said that in the past year, they spent $150 on tips they felt were unnecessary, according to the survey.

"People are saying, 'I don't know what to tip for any more,'" Popmenu CEO Brendan Sweeney told MarketWatch.

On top of that, the suggested tip amounts shown on now-ubiquitous "tip screens" can be 30% of the purchase price, or even more in some instances, said etiquette expert Nick Leighton.

"The suggested amounts can sometimes be bonkers. A $1, $2 or $3 tip suggestion on a $3 cup of coffee is a 33%, 66% or 100% tip," he said.

Add it up and we could be looking at the beginning of a consumer tipping backlash, if not a full-scale revolt, experts say.

"People are totally over it," said Izzy Kharasch, president of Hospitality Works, a Chicago-based restaurant-consulting firm.

Kharasch is part of that change in behavior. He said he generally doesn't leave tips when he's ordering a coffee or a muffin at a quick-serve establishment. It's what he describes as the new norm - being "tip choosy."

Consumers said that in the past year, they spent $150 on tips they felt were unnecessary.

The tipping boom started a few years ago, according to hospitality experts and others. Part of it was fueled by new technology: point-of-sale systems that built tip screens into the checkout process.

Another part was the growing awareness of the financial and other challenges that service workers face. That became particularly evident during the pandemic, when such employees were often told to show up for their jobs despite the health risks.

Tipping was "a meaningful way to thank service workers during an incredibly difficult time," said Deidre Popovich, associate professor of marketing at Texas Tech University.

But now that we're a few years past the pandemic, that concern may not be as significant, experts say. In addition, inflationary pressures have prompted many businesses - restaurants especially - to raise prices. So if consumers are having to pay more for their purchase, they may be less inclined to tip.

It's also possible the new "no tax on tips" deduction - something Donald Trump touted heavily during the presidential campaign - could result in some consumers deciding to tip less. Certainly, it's a point that's been raised on social media.

Finally, there are just those people, like Kharasch, who simply question if all services merit a tip of any kind, much less a sizable one.

"I'm so over tipping. It's gone too far," business owner Alitzah Stinson said in a TikTok video that has drawn hundreds of comments. Specifically, she addressed issues with tipping when ordering a breakfast smoothie - before she's even tasted the drink and decided whether it was good or not.

"It's a smoothie. It's not like a sit-down restaurant," she added, before sharing one of her new "rules" for tipping. "I am not tipping anywhere where they ask me to tip before I've experienced the service," she said.

What might happen if the tipping backlash becomes more significant?

Experts say that merchants may have to adjust expectations of what people will tip and, at the very least, lower the suggested amounts on those tip screens. Or they can simply opt to charge more upfront and build the tip into the overall price.

The Popmenu survey suggested the latter option would be an appealing one for many consumers, with 62% saying they would rather spend more for food and drink if it enabled restaurants to provide higher wages for their employees and do away with tipping entirely.

The status quo may prevail, tip screens and all, but consumers may begin to decide whether they really want to tip 30% or if they will just skip the gratuity altogether, experts say. Or perhaps consumers will find a middle ground that feels comfortable.

Either way, it appears they may no longer tip without discretion, said Popmenu's Sweeney.

"I think it will get to where people say, 'I'm going to have my own rules,'" he said.

-Charles Passy

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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October 24, 2025 13:32 ET (17:32 GMT)

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