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Traditional tipping etiquette dictates that customers give their servers an additional 15 to 20 percent at the end of their meal, while there is generally no obligation to tip for takeout. Many people supported their local economies early in the pandemic by increasing their tips at local cafes, corner stores, and favorite takeout spots. However, a recent survey revealed that tips in several categories have fallen below pre-pandemic levels.
Americans were happy to tip more than usual during the pandemic. But with inflation pinching their pockets, signs are mounting that Americans want to tip less.
Many people supported their local economies early in the pandemic by increasing their tips at local cafes, corner stores and favorite takeout spots, the latter being a once novel idea.
But now, experts say there’s a perfect storm of factors, including inflation and COVID-19 disincentives, leaving more and more “cranky consumers” waiting for exemplary service before shelling out a little more at the final.
Traditional tipping etiquette dictates that customers give their servers an extra 15 to 20 percent, before taxes, on top of the price of their meal, according to the Emily Post etiquette site.
However, a recent CreditCards.com survey revealed that tips in several categories have fallen below pre-pandemic levels. The number of customers surveyed who said they always tip dropped by 4 percentage points, from 77% in 2019 to 73% in 2022. Four percent said they never tip.
“Inflation is cutting into consumers’ purchasing power and a tight job market has left many service industry companies short-staffed and struggling to deliver top-notch experiences to customers,” Ted Rossman, an analyst at the company, said at the time. industry senior at CreditCards.com.
Skyrocketing costs at the pump and price increases at the grocery store also mean less disposable income across the board, which can translate to less cash for often underpaid service industry workers who rely on tips. of customers for their income.
However, restaurants are also feeling the inflation and supply shortages and are responding by raising menu prices, creating less incentive for customers to add a tip to their bill. Customers are also seeing other service interruptions.
The big resignation played a major role in ongoing service problems, Florida International University hospitality professors Andrew Moreo and Lisa Cain wrote in an analysis of the hotel industry’s burnout. They noted that hospitality workers pushed for the so-called big quit, listing low wages, long hours and weekend shifts as the main factors driving workers out of the industry.
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Moreo told Changing America that the decline in customer experience could offer another element to explain the decline in customer tipping habits.
“Customers are not getting the service they are used to. Menus have been reduced and prices have increased. Often they go in and look for what they want off the menu, even if the item is still on the menu, they may not have it due to issues with the supply chain,” Moreo said.
“People wait longer to be seated, or the whole service takes longer because there is a lack of staff. There are not enough servers, there are not enough cooks. So, I think their experiences in general have sadly diminished as well,” Moreo added.
Moreo said he learned in conversations with colleagues and associates in the industry that tips were appearing in uncommon areas like takeout and at the coffee counter as frontline workers offered what were considered in 2020 to be essential services.
In general, according to the Emily Post, there is no obligation to tip for takeout services, except in cases of large or special orders.
But even Moreo, who spent time in the hospitality industry, said his views on tipping are evolving, especially when it comes to takeout, as the US emerges from its pandemic economy.
“But, you know, even I, someone who is in the industry, have certainly taken it back. My perspective is that I see tips as a reward for excellent service and a great experience,” Moreo said. “And if I just call to place an order and go pick it up, what actual service did they provide? Where was the extra touch? Where was the extra bit that should really earn that tip?
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Posted June 21, 2022
Source: thehill.com