While inflation on everything from food and energy bills to transportation has dominated the headlines for much of 2022, the new year leveled off prices somewhat but brought with it a new kind of frustration.
Since the start of the summer, "tipflation" has been spiking on Google Trends (GOOGL) and increasingly appearing in online discourse.
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With Bankrate's annual survey showing growing dissatisfaction with tipping expectations (30% of those surveyed believe American "tipping culture" has gotten out of control while the number of people who say they "always" tip after eating at a restaurant fell from 77% to 65%), the term is used to describe the rising cost of tipping prompted by both the increased presence of preset screens and rising expectations.
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New terms such as "tip creep" (preprogrammed tip screens appearing in places where they haven't before) and "tip fatigue" (customers pushing back against the latter) have also started to emerge along with the more all-encompassing "tipflation."
"We're already living through inflationary times," Thomas Farley, an etiquette expert frequently referred to in the media as "Mr. Manners," told CNBC. "Everything is crazy expensive. And on top of that, you’re being asked, every time you turn around, 'How much would you like to tip?'"
The number of people who said they always tip has, based on Bankrate's numbers, also dropped from 66% to 53% for hair stylists, 57% to 50% for food delivery workers and 43% to 40% for taxi drivers.
When the expectation to tip is lower, the drop was less drastic -- just as in 2022, 22% always tip coffee shop baristas while a respective 17% and 13% do so for home appliance repair workers and grocery handlers.
According to Farley, one of the areas where tipping culture does not extend is the professional sphere -- lawyers, doctors and psychologists as well as plumbers and electricians are generally exempt from tips. Any gratitude is best expressed with a box of chocolates around the holidays.
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Other times when it is okay not to tip include counter service (while screens prompting a tip are increasingly more common, it is not required as there is no "service" such as when delivering food to one's house or bringing it to the table) and when a "service charge" is already included in the bill. While some restaurants try to capitalize on the expectation, "double-tipping" is never required.
The problem often arises in unclear expectations and businesses trying to make use out of those who might tip out of pressure or confusion. Even on top of a service charge, some choose to give a little extra to the waiter who brought them their food while others feel guilt clicking "no tip" when presented with a screen that starts at 18%.
But as frustration with such scenarios spills over, more customers are choosing to push back -- a reversal that, according to Farley, is evening out tipping culture and shifting cultural norms around when it is okay not to do it.
"From an etiquette standpoint, we still tip the servers who are bringing us our food," Farley said. "But I did leave that restaurant feeling like this was not a tenable situation."
