{"id":100350,"date":"2023-04-24T07:46:02","date_gmt":"2023-04-24T11:46:02","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=100350"},"modified":"2023-04-26T12:04:39","modified_gmt":"2023-04-26T16:04:39","slug":"tipflation","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/tipflation\/","title":{"rendered":"Is Tipflation Here to Stay? A Historical &#038; Current Perspective"},"content":{"rendered":"\n<p>Wondering why you&#8217;re suddenly tipping more? What&#8217;s tipflation? How is the legacy of tipping connected to today&#8217;s tipping fatigue?<\/p>\n\n\n\n<p>Tipping has a long history in the US, and these days it may feel like every time you turn around you\u2019re being asked to tip\u2014and to tip more than you\u2019d like.<strong> <\/strong>This phenomenon is called tipflation and experts say it&#8217;s mostly been driven by the pandemic and the use of tablets for payment.<\/p>\n\n\n\n<p>Read on to learn about tipflation, based on a historical perspective and current analysis of the issues. <\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-is-tipflation-here-to-stay\">Is Tipflation Here to Stay?<\/h2>\n\n\n\n<p>If you live in the US, it may feel like every time you turn around you\u2019re being asked to tip\u2014and pressured to tip more than you\u2019d like.<strong> It\u2019s not your imagination, it\u2019s tipflation<\/strong>. Tipping\u2019s on the rise in a growing number and array of US businesses, and many Americans have mixed feelings about it.&nbsp;<\/p>\n\n\n\n<p>How did tipping start in the US? What\u2019s behind the recent tipping explosion? Is tipflation here to stay? We\u2019ll examine experts\u2019 varied viewpoints on these questions.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-history-of-tipping\">The History of Tipping&nbsp;<\/h3>\n\n\n\n<p>First, let&#8217;s explore the legacy of tipping in America to better understand how tipflation could take hold in US culture. Some experts assert that the word \u201ctip\u201d stands for <a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\">\u201dTo Insure Promptness,\u201d<\/a> though others call this a <a href=\"https:\/\/time.com\/5404475\/history-tipping-american-restaurants-civil-war\/\" target=\"_blank\" rel=\"noreferrer noopener\">myth<\/a>. There is broad agreement, however, that<strong> tipping emerged in medieval Europe<\/strong>\u2014with slightly different views on its evolution:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Some say that<strong> tipping began with wealthy patrons paying servers extra money to <\/strong><a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>quell their resentment<\/strong><\/a><strong> over having to serve people enjoying their food and beverages a little too heartily<\/strong>.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Others argue that <strong>the practice started with masters giving servants extra money <\/strong><a href=\"https:\/\/time.com\/5404475\/history-tipping-american-restaurants-civil-war\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>for outstanding performance<\/strong><\/a><strong>\u2014a custom that wealthy Americans vacationing in Europe in the 1850s and 1860s learned of and, longing to be aristocrats, adopted once back in the US<\/strong>.<\/li><\/ul>\n\n\n\n<p>But tipping took root in the US when enslaved Americans were set free at the end of the Civil War. Experts say <strong>the legacy of slavery turned the tip from a \u201cbonus\u201d into the \u201cwage\u201d workers see today<\/strong>, evolving as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>1915<\/strong>: Six US states abolished tipping\u2014<strong>but tipping remained popular in the South<\/strong>.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>1926<\/strong>: <strong>All laws ending tipping were repealed<\/strong>.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>1938<\/strong>: Federal legislation required employers only to pay tipped workers a wage that, when combined with tips, added up to the federal minimum wage (<a href=\"https:\/\/www.dol.gov\/agencies\/whd\/minimum-wage\/history\/chart\" target=\"_blank\" rel=\"noreferrer noopener\">$0.25<\/a>).<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>1991<\/strong>: The federal government established a <a href=\"https:\/\/www.epi.org\/publication\/waiting-for-change-tipped-minimum-wage\/\" target=\"_blank\" rel=\"noreferrer noopener\">minimum wage for tipped workers<\/a> of $2.13\u2014a number that holds today.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>2023:<\/strong> <a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>It remains legal in 43 US states<\/strong><\/a><strong> to pay tipped workers less than the standard minimum wage ($7.25) because, presumably, tips will make up the difference<\/strong>.&nbsp;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-tipflation-and-what-s-behind-it\">What Is Tipflation\u2014and What\u2019s Behind It?<\/h3>\n\n\n\n<p><strong>Tipflation, and its partner, <\/strong><a href=\"https:\/\/www.cbsnews.com\/news\/tipping-backlash-inflation-who-should-get-tipped\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>\u201dtip creep,\u201d<\/strong><\/a><strong> are recent phenomena in which US customers are tipping <\/strong><a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>more<\/em> and in <em>more non-traditional places<\/em><\/strong><\/a>, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>In jobs where workers are paid the standard federal minimum wage or more, like baristas and drivers.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>For services like GoFundMe, which requests tips from donors to operate the platform (while neglecting to mention its automatic service fee deduction from donations).<\/li><\/ul>\n\n\n\n<p><strong>Experts attribute tipflation to two key factors<\/strong>:<\/p>\n\n\n\n<p><strong>Factor 1: The pandemic<\/strong>. When Covid-19 shuttered much of the economy and fear of the virus ran rampant, Americans began <a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\">tipping service industry workers more<\/a>\u2014and tipping for services they hadn\u2019t before:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Customers started tipping delivery workers as much as 30%.&nbsp;<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Remote transactions with a tipping option increased from 46%, pre-pandemic, to 86% in 2022.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Struggling restaurants began asking customers to tip for food pickups to supplement lost income.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Factor 2: Tablets<\/strong>. Another reason tipflation has taken hold is that more businesses are processing payments with touchscreen tablets that prompt customers to choose from three different tipping options\u2014often in the range of <a href=\"https:\/\/retailwire.com\/discussion\/which-drives-you-crazier-tipflation-or-tip-creeping\/\" target=\"_blank\" rel=\"noreferrer noopener\">15%, 20% or 25%<\/a><strong> <\/strong>or higher. <strong>Experts say the tablets are a strong tip shaming strategy because<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Tip button options are large and often <\/strong><a href=\"https:\/\/www.vox.com\/recode\/2022\/10\/7\/23389885\/square-toast-tipping-retail-tipflation-guilt\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>publicly visible<\/strong><\/a><strong> to the worker helping the customer and others<\/strong>, pressuring customers to tip\u2014and tip more than they\u2019d like.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>They force customers to either <em>tip<\/em> or <em>opt out of<\/em> tipping<\/strong>. Unlike counter tip jars, tablet tip options can\u2019t be ignored or \u201cforgotten.\u201d<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>The devices often prompt customers to enter a tip <\/strong><a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>before<\/em> services are rendered<\/strong><\/a>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Will Tipflation Drop Off?<\/h3>\n\n\n\n<p>Experts say<strong> tipflation is <\/strong><a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>already waning<\/strong><\/a> because Americans who feel they did their part to keep restaurants afloat during the pandemic and now confront high inflation are tired of being badgered for more money at every turn. The subsequent <a href=\"https:\/\/www.cbsnews.com\/news\/tipping-backlash-inflation-who-should-get-tipped\/\" target=\"_blank\" rel=\"noreferrer noopener\">tip fatigue<\/a> many feel is leading to a <a href=\"https:\/\/www.youtube.com\/watch?v=q_fMkXHYh6c\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>tip backlash<\/strong><\/a>\u2014where customers tip less or not at all.<\/p>\n\n\n\n<p>Experts say that while tip fatigue is understandable,<strong> the backlash it inspires will most harm <\/strong><a href=\"https:\/\/www.npr.org\/2022\/12\/27\/1145579337\/tipflation-why-youre-not-alone-if-youre-being-asked-to-tip-more-often\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>restaurant servers<\/strong><\/a><strong>, who rely on tips to survive<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wondering why you&#8217;re suddenly tipping more? What&#8217;s tipflation? How is the legacy of tipping connected to today&#8217;s tipping fatigue? Tipping has a long history in the US, and these days it may feel like every time you turn around you\u2019re being asked to tip\u2014and to tip more than you\u2019d like. This phenomenon is called tipflation and experts say it&#8217;s mostly been driven by the pandemic and the use of tablets for payment. Read on to learn about tipflation, based on a historical perspective and current analysis of the issues.<\/p>\n","protected":false},"author":19,"featured_media":10100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,31,24],"tags":[727],"class_list":["post-100350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-money","category-society","tag-articles","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is Tipflation Here to Stay? A Historical &amp; Current Perspective - Shortform Books<\/title>\n<meta name=\"description\" content=\"Wondering why you&#039;re suddenly tipping more? 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Learn why tipping\u2019s on the rise in the US and how its legacy contributes to today&#039;s tipflation.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/tipflation\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-24T11:46:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-26T16:04:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/06\/understanding-customer-needs-spin-selling-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1708\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Emily Kitazawa\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Emily Kitazawa\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/tipflation\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/tipflation\/\"},\"author\":{\"name\":\"Emily Kitazawa\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/e094024454c7d3334a149c0cf039bdeb\"},\"headline\":\"Is Tipflation Here to Stay? 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