Has tipping for takeout become a social norm?

According to a recent survey, 67.7 percent of Americans feel pressured to tip when picking up takeout food or coffee if the POS system prompts them to, and 44.8 percent only tip because a POS tablet prompts them to do it. The Time2Play survey of just over 2,000 U.S. consumers found 86.8 percent of respondents agreeing the pressure to tip from a POS system makes them uncomfortable. Like some other recent surveys, the study found consumers were more open to tipping over the pandemic as many food establishments faced challenges. Of the respondents, 53.4 percent said they have tipped for takeout versus 24.2 percent before the pandemic. The average takeout tip was 13.8 percent. Overall, the average tip at sit-down restaurants was found to be 22.8 percent, up from 17.1 percent pre-pandemic. A survey from PlayUSA of about 1,000 Americans similarly found 51 percent had given a few extra bucks when a touchscreen payment device asked them and 54 percent felt pressured by the tip prompt. Of the respondents, 31 percent tip when getting takeout from a restaurant while 39 percent leave a tip at a coffee shop (27 percent at big chains like Starbucks, 49 percent at local coffee shops). A recent Recode article explored the social pressures to tip as touchscreen contactless payment methods were adopted during the pandemic, something harder to ignore than the tip jar. One consumer frustration, the article points out, is the varied tipping suggestions across establishments, with some businesses setting the range higher to encourage bigger tips. Harry Brignull, a U.K.-based user experience specialist and researcher of human-computer interactions, told Recode, “It’s easy to cross the line from honest persuasion to harmful manipulation.” A CNBC article pointed to recent research from payment processing platforms, Toast and Square, indicating average tips were decreasing at quick-service restaurants since the earlier stages of the pandemic. “Part of it is tip fatigue,” Eric Plam, founder and CEO of San Francisco-based startup Uptip, which supports cashless tipping, told CNBC. He added, “This point-of-sale tipping is what people resist the most — compelling you to tip right there on the spot.”

• Guilt Tips: Are we being pressured to tip more? – Time2Play
• Takeout From Restaurant – Play USA
• Americans are worse tippers now than before COVID-19 hit – CreditCards.com
• Everyone wants a tip now. Do you have to give them one? – Recode
• Americans have ‘tip fatigue’ — post-pandemic, diners are less inclined to tip generously for takeout – CNBC
• Literally just charge me the extra $2 for my meal, stop making me feel uncomfortable – TikTok
• The case for tipping for takeout – The Washington Post
• To Tip, or Not to Tip? – The New York Times
• Is tipping out of control? – RetailWire

Should you tip on takeout?

When you’re at a restaurant, cafe, or similar place of business, the checkout process can feel daunting when the POS transaction includes the extra step of asking for a tip. This can be especially confusing since this scenario is different when compared to being seated and helped by a server or waiting on a delivery driver to bring you your food. 

Tips are voluntary (It’s up to you how much to tip)

But you’re not alone in this predicament, because retail experts also have differing views, each with their own well-thought-out conclusions that make sense and can be agreed with. In favor of tipping during POS transactions, Mark Ryski, Founder, CEO & Author, HeadCount Corporation, discusses how: “Tipping for takeout seems to have become a norm, and touchscreen payment tablets help facilitate it. Ultimately, it’s up to the consumer to decide if they tip or not. Social pressure and POS angst are in the eyes of the beholder. I can’t blame restaurant operators for asking for a tip, and frankly many are still recovering from the effects of the pandemic so it’s understandable. But ultimately, it’s up to the consumer — if you don’t want to tip, then don’t tip.”  This sums up how consumers have been conditioned to regularly tip at food establishments with the introduction of POS tablets that have the extra step. And many consumers complied due to the effects of the pandemic. 

Tips should be reasonable and match the quality of service

From a different perspective, David Spear, Industry Consulting, Retail, CPG, and Hospitality, explains how: “It hasn’t become a norm, but you’d think every coffee shop and restaurant EXPECTS you to tip. And some have inflated the levels to astronomical rates. For instance, I was at a local coffee shop a few months back and the lowest tip was 25 percent, and went up to 40 percent! That’s a bit ludicrous. Tipping shouldn’t make people squirm. If you believe the experience and quality of food/beverages are of high quality and you can see that the staff is working hard for you, then tip. If not, then don’t.”  On the other hand, this viewpoint elaborates on how not everyone agrees with tipping, and that it might seem like restaurants might be taking advantage of consumers with unreasonable tipping percentage rates.

Tip to show appreciation

Finally, there is always a positive benefit to tipping. As explained by Richard J. George, Ph.D. Professor of Food Marketing, Haub School of Business, Saint Joseph's University: “Reminders and recommendations should not be confused with manipulation. Tipping should be the social norm in the foodservice business, characterized by low wages and often menial tasks. COVID almost destroyed this industry. Tipping should be perceived as a positive to support these folks rather than as a potential extortion attempt. In the words of my wife, “real men tip big.” This summation hits hard with a powerful expression that is both memorable and holds true in many cases. Although not absolute, it’s a fair and responsible perspective that we all need to take into account when visiting a food establishment. In conclusion, one needs to take into consideration the establishment they’re buying from, its workers, the type of service provided every time you step into its doors, and how much you enjoy the food. If you want to continue supporting them, then tipping should always be encouraged.