A recent survey found that Americans believe that tipping in the food service industry has gotten out of control and the vast majority want to see an end to automatic service charges for large parties, the Washington Times reported.
Nearly three out of four Americans surveyed by WalletHub agreed with the statement “tipping is out of control” while another 64 percent agreed that tips should be a choice rather than a requirement. A staggering 78 percent oppose automatic service charges being added to bills for large orders.
WalletHub’s Cassandra Happe said the food industry’s tipping culture has changed significantly in recent years, especially during the pandemic lockdowns that led to a spike in meal deliveries and take-out service.
Additionally, more establishments where tips were not commonplace are now asking customers to add a tip at checkout while other businesses have self-checkout machines that ask customers to add a tip, despite the lack of human interaction.
According to the survey, half of the respondents said they often tip not because of good service but because they feel pressured to do so.
Happe said many Americans now believe that the tipping practices at many businesses have become unfair and excessive. She urged businesses to reduce the pressure on their customers to leave a tip by boosting wages.
The survey found that about 60 percent of Americans think businesses are using tips to avoid paying employees more.
The increased cost of dining out has frustrated consumers.
In February, Wendy’s CEO Kirk Tanner announced that the company would start testing digital menus that allow franchise owners to alter prices throughout the day based on demand. With the so-called “dynamic pricing,” franchise owners could increase menu prices during a lunch or dinner rush and lower them again in the late evening.
After Tanner’s announcement caused blowback on social media, Wendy’s reversed course and said it would not allow prices to increase when demand is high.
