No signs of “tipping fatigue” despite inflation

Inflation has not stopped people from tipping despite the price of everything going up.

During the three months ended June 31, the average same-store tip amount was nearly 10 percent higher than last year. According to a report From Toast, which sells digital payment platforms to restaurants. (Same-store tips refer to tips from stores that were on the platform from the first quarter of 2021 through the first quarter of 2022.) In the three months through June, the average in-person tip was 19.7%. , according to the report.

The habit of tipping workers generously may be here even as inflation remains high. Inflation is at the moment. 8.5% growth in July. compared to last year.

Customers are tipping workers. Increased during Covid-19 sheds light on the treatment of workers, in particular, those who are customer-facing, who worked during the public health crisis while office workers were able to work from home.

Tipping options have become more popular with digital payments.

At the same time, digital payments make tipping more convenient and convenient, which comes with Its own controversy – which makes some people feel obligated to tip even in places that are almost or. Completely self-service. More business Access to mobile payment systems., such as those provided by Toast or Square, come with predefined tipping options that customers can simply swipe and percentages that are calculated for them. this year, Starbucks And sweet green Announced that they will start tipping in card and digital payments.

Tashleen Lakhani, an assistant professor at the Cornell SC Johnson College of Business, previously told Vophs that when there is pressure to raise wages, businesses can use the promise of tips to cut labor costs or keep menu prices down. are Last year, entertainment and hospitality workers saw some of the biggest wage increases, as employers raised wages to better attract and retain workers.

That said, tipping is also encouraged Unfair pay systemespecially towards minorities and women, and pushes Responsibility for fair wages on customers. In other words, tipping should not be the answer to raising workers’ wages. To get better and more stable salary, Labor lawyers argue.requiring restaurants to pay a higher wage or minimum wage to restaurant workers, where, in many states, wages for tipped employees are set below the standard minimum wage. Needs to be corrected.

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