"Tired of Endless 'Tip, Tip, Tip' Even at Machines... Americans Also Feel Fatigue [New York Diary]"

After more than two months of living in the United States, everything is something I have to adapt to, but there is one thing that is particularly difficult to get used to: the tipping culture. Since it has long been established in the U.S., I try to willingly leave tips at restaurants and other places without showing that I am a 'foreigner,' but there are many times when I feel fatigued by 'tipflation' (tip + inflation).

First of all, the tipping rate itself has increased compared to before. Before the COVID-19 pandemic, when traveling or on business trips to the U.S., the tipping rate was around 15% of the total service cost, including food. However, after the pandemic, this rate jumped to 18-22%. Some places even require as much as 25%. Due to pandemic-driven liquidity supply and the Russia-Ukraine war causing inflation, the tip, which is a certain percentage of the service cost, automatically rises, but inflation has also been reflected in the tipping rate itself. Although it is burdensome, I am trying to get used to it as it is part of American culture.

However, what causes particular fatigue is the atmosphere where tips are demanded even when no service is provided by the server. When ordering and paying at cafes, bakeries, and the like, you always face a message on the touchscreen asking if you want to leave a tip. Since I did not receive any special service, I confidently select the 'No tip' option, but it is often uncomfortable to look at the employee’s face standing at the counter. It becomes even more awkward at regular stores. Since tips are requested even when ordering via kiosks at a muffin shop, I sometimes wonder if I should just accept tip requests during face-to-face orders.

Due to severe tipflation, even Americans who are accustomed to tipping culture are expressing fatigue these days. According to a recent survey conducted by the online coupon site CouponBuzz with 1,199 Americans, 79.3% of all respondents said that leaving a tip even when using self-service kiosks is excessive. Nearly half, 47.3%, reported having experienced tipping at kiosks. A significant number of respondents said they tip out of 'guilt.' Two out of three respondents said they tip to avoid awkwardness or confrontation with staff, and 60% said they have experienced aggressive behavior from servers when they did not tip enough. Consumers who leave tips are also becoming stingier. Seven out of ten Americans reported giving smaller tips than before. The average tipping rate among respondents was 12.9% of the total service cost, which is much lower than the minimum 18% required at restaurants. This shows a lack of social consensus on tipping culture even within the U.S.

In fact, tipflation is an act of shifting costs that should be borne by business owners onto consumers. Business owners argue that with rising raw material and labor costs, tipflation is inevitable if they want to avoid raising menu prices further. However, as consumer burdens increase, some state governments have stepped up. Washington D.C. is promoting the 'Restaurant Act,' which will gradually raise the minimum wage for tipped employees to match the general minimum wage by 2027. Once this law is implemented, costs not specified on the menu cannot be charged to consumers. The restaurant industry is opposing this. They argue that without tips, owners will have to bear the full burden of wage increases for employees and have threatened to unilaterally impose a 20% service charge on food prices. Some restaurants in New York are already charging a certain percentage of food prices as a service fee.

For Americans, whose wallets are already strained by soaring prices, tipflation has become a major headache. The burden of tipping continues to act as upward pressure on service costs, even amid recent inflation slowdowns. What used to be a voluntary tip given as a token of appreciation for friendly service has become an additional cost that must be borne even when no service is received, leading to growing negative perceptions of tipping culture even in the U.S. Recently, tipping culture has been gradually spreading in Korea as well. It is said that more and more business owners are placing tip boxes at cash registers, not for voluntary tips from consumers who experienced friendly service, but as an additional charge. For consumers, it is just another extra cost. Tipping culture is one of the things I hope is not imported from the U.S.