(WXYZ) — Since the beginning of the pandemic, the hospitality industry has continued to take a hit. From labor shortages to supply chain issues, now workers are facing another brewing challenge – the changing trend of tipping.
A survey by CreditCards.com showed that even though pre-pandemic spending habits have returned, tipping habits haven't.
The number of people who always tip at restaurants dropped from 77% in 2019 to 73% in 2022, and tips for food delivery and rideshare drivers went down 6% in the same period.
In the U.S., tipping is a heavily-practiced social custom, and over the decades, folks have only gotten generous with the amount they tip. But lately, the tradition has become luke warm, and there could be several reasons.
"That is easily explained by the rising cost of goods for everybody," Jonathan Gibson, the manager of Dessert Oasis Coffee Shop in Downtown Detroit said.
He added that during any economic shift, gratuity gets impacted.
"I think there is always been some ambiguity around whether or not you tip for a to-go order, a pizza place, or a coffee shop," he said. "I think when there is some ambiguity about whether or not to tip in coffee, it's the first to go.
With the tipping culture declining nationally, we hit the streets of Ferndale to see what's the vibe locally.
Zac Broder said he always gives something; % if it's a bad experience and 20% if it's good.
He said he is not a fan of a new trend when businesses add gratuity to the bill.
"That's probably like a sign of inflation than anything else, they're just putting it in, it's not your call anymore," he said.
Another reason behind the shift is guilt-tipping. Economist Patrick Anderson says that's when businesses flip a screen like towards customers to choose the tip amount.
"That's not what I would consider being a change in people's generosity, that are starting to react to being told that they should tip when in their view they didn't receive a service," Anderson said.
For Samantha Peterson, take-outs have become another service where folks shouldn't have to tip.
"Because I'm doing the work, yes you are cooking the food, but I'm coming to pick it up," she said.
However, server Summer Walkowika disagrees.
"Who answered the phone? Who talked to you? Who took time away from what they did? she asked. "A lot of time people call, they don't know what they want, and all of a sudden 10 minutes have gone by. Then when they come to pick up, I have to make sure everything is right in the carryout.
Meanwhile, according to a Popmenu survey, Michigan is one of the strongest tipping states with folks paying an average tip of 18%.
