If you’re not already dealing with it in your business, you’ve likely encountered it as a consumer: the unexpected tip prompt. As consumers are faced with more frequent tipping prompts and escalating suggested amounts in unexpected venues, the resulting anxiety and frustration has been dubbed “tipping fatigue.” It’s coming at a time when consumers are already feeling the away-from-home pinch—with grocery prices leveling out while menu prices continue to reflect high labor and ingredient costs. The combination of factors has led foodservice to experience its first slowdown since the onset of COVID.1
So, what do you do? Eliminate tipping altogether? Raise menu prices and compensation? Tipping isn’t going away, but it’s clear tipping culture needs to change to meet consumer expectations. See what you can do to maintain guest satisfaction and loyalty, while showing staff you value their work.
Managing the evolving dynamics of tipping culture will continue to be an important part of fostering guest satisfaction. How ever you approach tipping in your business, transparency is a strategy that shows you are being thoughtful about the consumer experience and your staff’s wellbeing.
For more tips on navigating shifts in foodservice, check out our trend resources or reach out to your representative.
1Pew Research Center, Tipping Culture in America: Public Sees a Changed Landscape, November 2023.