Many of us have likely encountered the tipping prompt when grabbing coffee or food from a fast-service counter, offering several gratuity options (e.g. 10%, 20% and 30%). However, these point of service conveniences have also resulted in growing frustrations among consumers known as “tip fatigue” – the increasing pressure and confusion around tipping. Among 30 percent of Americans believe today’s tipping culture has gotten out of control.

Some suggest COVID-19 brought on these changes, where customers were encouraged to tip service industry workers more generously for their frontline work during the pandemic’s peak. Although the worst of the pandemic has passed, tipping all service industry workers, even those who have fixed wages, is still prevalent.

So, should you tip? If so, how much? Here is a guide that will help you navigate these questions:

Food Delivery Services

Last June, a major debate was sparked when a DoorDash driver uncouthly confronted a woman for only giving him a $5 tip on a $20 pizza order. While that DoorDash driver was fired for verbally abusing the customer, it opened up the question: how much is a respectable tip for food delivery services? According to several drivers and meal delivery websites, such as DoorDash, GrubHub, Postmates or Uber Eats, the recommendation is between 15 and 20 percent, since the tips go directly to the driver, and you are tipping for the convenience of having food delivered to your door. Delivery companies also recommend tipping more in situations of bad weather (e.g. $3-$5+) or for an especially big order.

Restaurant/Dine-In Service

At restaurants, it is considered standard to tip between 15 and 20 percent to show your satisfaction with the service. This is particularly important when you are seated and receiving service during a meal. However, if you are traveling out of the country, you might want to research the tipping customs of your destination beforehand. In Europe, for instance, service industry workers earn a livable wage, so tipping is not necessary. The United States, on the other hand, has a different system where servers often rely on tips to make a livable income.

Mobile and Pick Up Orders

Many people feel guilty when they pick up a quick meal, takeout, or coffee and are asked to tip. In some situations, you shouldn’t feel obligated to tip 15 to 20 percent unless you prefer to. For instance, if your cashier simply retrieved a few sodas from the fridge, you might not tip at all. Or if they went to great lengths to ensure your favorite meal had all the extra accoutrements, cutlery, and more, you might stick with 20%. For smaller items at your neighborhood coffee shop, you can consider leaving a dollar or two as a gesture of appreciation for the service. Some gratuities, a smile and thank you can go a long way for those working early mornings, long hours, and exhausting days. 

Personal Services

When visiting the salon for a haircut or nail service, it is customary to tip the service providers around 18 to 20 percent. Tips contribute significantly to hairdresser or nail technician’s earnings. However, due to inflation, the cost of these services has increased. As salon prices vary, it may be worth comparing prices to find a salon that offers similar services at a more affordable rate. Additionally, consider arranging a consultation with your preferred stylist or technician to discuss the cost of the service to see if the total amount, including the tip, fits within your budget.

Create a Budget That Includes Tip

To avoid any surprises, planning and calculating the tip and service charges before making an appointment, ordering takeout, or dining out is a good idea. This way, you can create a budget that includes these expenses. If you’re worried about the cost of services that require tips, it might help you determine how often you can afford to go out, get your nails done, or order food delivery.

Budgeting is key when the price of services and dining out are on the rise. To avoid any surprises, it’s important to set aside money for the services you know you’ll need or use, factoring in all of the associated costs. This way, you can stay prepared and avoid any unexpected financial burdens.

For more financial education resources, visit the Savings Tips page at efirstbankblog.com.

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