Study Finds Tipping Culture is on the Decline - The Source - Bend, Oregon
perigon
Last updated: April 18, 2026
Tipping culture in the United States is undergoing significant changes, with an increasing number of businesses offering pre-set tip suggestions on digital payment systems. This shift is prompting discussions about the appropriateness and impact of these prompts on consumer tipping behavior and service industry compensation.
- The average tip percentage suggested by restaurants has risen considerably. Data indicates that in early 2023, the average suggested tip for a modest transaction like a cup of coffee was 18%, which increased to 20% by mid-2023 and further to 25% by late 2023.
- This trend extends beyond casual dining to various service industries, including takeout orders and retail. Even for minimal services, such as purchasing a single item, customers are frequently presented with higher default tipping options.
- The rise in suggested tip percentages is attributed to the integration of digital payment systems and point-of-sale (POS) technology, which automate the tipping process. These prompts are often customizable by businesses.
- This phenomenon has led to increased consumer expenditure on tips, even for services that traditionally did not involve tipping or involved lower percentages.
- The study highlights a notable increase in the actual tips left by consumers, correlating with the higher suggested percentages, indicating a potential shift in societal tipping norms.
