Is Tipping Culture Out of Control? A Look at the WalletHub Survey and Automatic Service Charges.

Not applicable, Not applicable United States of America
Automatic service charges have become increasingly common and can add up quickly
More than half believe businesses are replacing employee salaries with customer tips
Nearly 3 in 4 people think tipping is out of control
Over half of respondents left tips due to social pressure
Is Tipping Culture Out of Control? A Look at the WalletHub Survey and Automatic Service Charges.

Tipping culture has become a hot topic in recent years, with many people feeling that it has gotten out of hand. A survey conducted by WalletHub found that nearly 3 in 4 people think tipping is out of control and more than half believe businesses are replacing employee salaries with customer tips. Additionally, over half of respondents left tips due to social pressure.

The issue with tipping culture has been exacerbated by the rise of automatic service charges, which have become increasingly common in many industries. These charges can add up quickly and make it difficult for customers to keep track of their total bill. As a result, some people are becoming more cautious about how much they tip at restaurants and other establishments.

Despite these concerns, there are still those who believe that tipping is an important part of the dining experience. Some argue that tips help to ensure good service from waitstaff and encourage them to work harder for their customers. Others say that it's simply a matter of being polite and showing appreciation for the hard work of restaurant employees.

Ultimately, whether or not tipping culture is out of control will depend on how people choose to use this system in the future.



Confidence

90%

No Doubts Found At Time Of Publication

Sources

93%

  • Unique Points
    • Nearly 3 in 4 people think tipping culture has gotten out of control
    • More than half think businesses are replacing employee salaries with customer tips
    • Half of respondents left tips due to social pressure
  • Accuracy
    • 78% of respondents believed that automatic service charges should be banned
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (85%)
    The article contains several examples of bias. Firstly, the author uses language that dehumanizes tipped workers by saying 'it is becoming an issue' and 'people just get fed up and stop tipping altogether'. This implies that tipped workers are not capable of making informed decisions about their income. Secondly, the article quotes a professor who suggests businesses should increase wages so staff members do not always think that tipping or getting higher tips is the best way of making money in restaurants and bars. This statement shows a clear ideological bias towards increasing minimum wage rather than allowing businesses to determine how they compensate their employees. Lastly, the article quotes a study conducted by WalletHub which found that 63% of respondents said that too many places are asking for tips, and 48% said they're tired of being asked to tip. This shows a disproportionate number of quotations reflecting a specific position.
    • Businesses should increase wages so staff members do not always think that tipping or getting higher tips is the best way of making money in restaurants and bars
      • It is becoming an issue
        • people just get fed up and stop tipping altogether
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (0%)
          None Found At Time Of Publication

        69%

        • Unique Points
          • Customers are being asked to tip at traditional service encounters and app-based services such as ride-share and delivery apps. This gives the perception that tipping is everywhere.
          • The pressure to tip has increased over the past year, particularly when it comes to payment prompts with predetermined options that can range between 15% and 35% for each transaction.
          • Consumers are getting squeezed at every turn due to inflation, shrinkflation and tipflation. Many have had enough and feel obligated to tip based on basic guilt.
        • Accuracy
          No Contradictions at Time Of Publication
        • Deception (30%)
          The article is deceptive in several ways. Firstly, the author uses a loaded term 'guilt tipping' to make it seem like consumers are feeling guilty for not tipping enough when they don't have to. Secondly, the author quotes an expert who says that shoppers should consider tipping at every point of sale even if they don't want to express gratitude which is misleading and can be seen as promoting deceptive practices.
          • The article uses a loaded term 'guilt tipping' to make it seem like consumers are feeling guilty for not tipping enough when they don't have to.
          • The author quotes an expert who says that shoppers should consider tipping at every point of sale even if they don't want to express gratitude which is misleading and can be seen as promoting deceptive practices.
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (75%)
          The article discusses the increasing pressure to tip for various services and how consumers are starting to push back. The author uses quotes from experts in the field who suggest that tipping is everywhere and can be seen as guilt-inducing. Additionally, some examples of consumers not feeling obligated to tip or choosing not to do so are provided.
          • Customers are being asked to tip at more traditional service encounters and also app-based services like ride-share and delivery apps.
          • Site Conflicts Of Interest (50%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (50%)
            None Found At Time Of Publication

          70%

          • Unique Points
            • Businesses are now asking for tips more frequently than in the past
            • The purpose of tipping is to pay workers who earn subminimum wages and make up the difference with customer tips
            • Some states have minimum wages that are more than twice that of the federal minimum wage, while others have a subminimum wage for service workers like servers
          • Accuracy
            • Nearly 3 in 4 people think tipping culture has gotten out of control
            • Customers are being asked to tip at traditional service encounters and app-based services such as ride-share and delivery apps
          • Deception (50%)
            The article is deceptive in that it presents the idea of tipping as a new etiquette when in fact tipping has been around for many years. The author also implies that businesses are asking for tips more frequently than before but fails to provide any evidence or statistics to support this claim.
            • The article states 'Businesses that never seemed to ask for a tip before...are now asking for one these days.' However, the article does not provide any context or data on how many businesses are actually doing this. This is an example of deceptive language used to create a false impression.
            • The author implies that there has been an increase in tipping etiquette but fails to provide any evidence or statistics to support this claim. This is another example of deceptive language used to manipulate the reader's perception.
          • Fallacies (85%)
            The article contains several fallacies. The author uses an appeal to authority by citing experts without providing any evidence of their expertise or qualifications. Additionally, the author commits a false dilemma by presenting only two options for tipping etiquette when there may be other factors to consider such as personal preference and financial ability.
            • The article uses an appeal to authority by citing experts without providing any evidence of their expertise or qualifications. For example, the author states that Sylvia Allegretto is a senior economist at the Center for Economic and Policy Research who has done extensive research on wages and tipping. However, there is no information provided about her credentials or experience in this field.
            • The article commits a false dilemma by presenting only two options for tipping etiquette when there may be other factors to consider such as personal preference and financial ability. For example, the author states that if you're not sure about who or how much to tip, don't be afraid to ask. However, this assumes that everyone has access to information about minimum wages and subminimum wages in their state.
            • The article uses inflammatory rhetoric by stating that some of our experts say much of the etiquette remains the same (for example, if you're not sure about who or how much to tip, don't be afraid to ask). This creates a sense of urgency and pressure on readers to follow these guidelines without providing any evidence for their validity.
          • Bias (85%)
            The article discusses the new etiquette for tipping and how it has changed over time. It explains that some businesses are now asking for tips where they never did before, such as grocery stores and self-checkout machines. The author also mentions that there is a change in tipping culture due to the pandemic, which led people to start tipping more frequently than usual as a way of supporting essential workers. Additionally, the article discusses how some businesses use technology like Square to encourage tipping and make it easier for customers to leave tips. The author also explains why we have a two-tier wage system in America where service workers are paid subminimum wages that are below minimum wage, with customer tips making up the difference. Finally, the article provides helpful advice on how much to tip based on location and other factors.
            • The author mentions that some businesses now ask for tips where they never did before.
            • Site Conflicts Of Interest (50%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (0%)
              None Found At Time Of Publication

            68%

            • Unique Points
              • Nearly 3 in 4 people think tipping culture has gotten out of control
              • More than half think businesses are replacing employee salaries with customer tips
              • Half of respondents left tips due to social pressure
            • Accuracy
              • 78% of respondents believed that automatic service charges should be banned
            • Deception (30%)
              The article is deceptive in several ways. Firstly, the title of the article suggests that tipping culture has gotten out of hand when in fact it only mentions a survey conducted by WalletHub which found that nearly 75% of people think tipping is out of control. Secondly, the author quotes Assistant Professor Cortney Norris stating that businesses are replacing employee salaries with customer tips but does not provide any evidence to support this claim. Thirdly, the article mentions a USA TODAY Blueprint survey which found that 63% of respondents said too many places were asking for tips and 48% said they're tired of being asked to tip, however it fails to mention what percentage of these respondents left tips due to social pressure. Lastly, the article mentions a law in California that increases the minimum wage for fast food restaurants but does not provide any information on how this will affect tipped workers or their earnings.
              • The article mentions a law in California that increases the minimum wage for fast food restaurants but does not provide any information on how this will affect tipped workers or their earnings.
              • The article mentions a USA TODAY Blueprint survey which found that 63% of respondents said too many places were asking for tips and 48% said they're tired of being asked to tip, however it fails to mention what percentage of these respondents left tips due to social pressure.
              • The author quotes Assistant Professor Cortney Norris stating that businesses are replacing employee salaries with customer tips but does not provide any evidence to support this claim.
              • The title of the article suggests that tipping culture has gotten out of hand when in fact it only mentions a survey conducted by WalletHub which found that nearly 75% of people think tipping is out of control.
            • Fallacies (75%)
              None Found At Time Of Publication
            • Bias (80%)
              The article contains examples of bias in the form of language that dehumanizes tipped workers. The author uses phrases such as 'tip burnout' and 'people just get fed up and stop tipping altogether', which implies that tipped workers are helpless victims who have no agency or control over their situation.
              • It is becoming an issue and should this feeling of tip burnout reach a crescendo, there could be negative outcomes for individuals who rely on tips as their primary source of income
                • people just get fed up and stop tipping altogether
                • Site Conflicts Of Interest (100%)
                  None Found At Time Of Publication
                • Author Conflicts Of Interest (50%)
                  The author has a conflict of interest on the topic of tipping culture as they are reporting for USA TODAY Blueprint which is an initiative by USA TODAY to provide insights and analysis into various topics. The article also discusses automatic service charges, social pressure, tipped workers and minimum wage increase in California which may be related to the author's affiliation with WalletHub.
                  • The article mentions that tipping has become a cultural norm in many countries and it is expected of customers to leave a generous tip for their waiters. This suggests that there may be pressure on tipped workers to accept low tips or work long hours just to make ends meet.