To tip or not to tip
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Illustration: Maura Losch/Axios
You're in the checkout line to pay for a pack of gum, a takeout meal or a little gift from a boutique, and the employee swivels around the checkout screen that asks for a tip. What do you do?
What's happening: Tip-flation. During the pandemic, customers started tipping frontline employees more frequently, but the habit stuck.
Zoom out: Businesses have long had tip jars. And customers have long expected to tip professionals like hairstylists, taxi drivers, bartenders and servers — all situations in which a service is rendered.
Yes, but: The pandemic changed how frequently and when customers are being asked to tip, said Julio Sevilla, an associate professor at the Terry College of Business at the University of Georgia.
- The ubiquitousness of tipping comes at a time when more and more businesses are moving toward cashless transactions — meaning the option to tip is automated — and as inflation has made everything we buy way pricier than it was a few years ago.
State of play: Tipping on all sorts of transactions picked up during the pandemic and caught on as consumers — whose finances were boosted with financial stimulus or saved from not traveling — felt solidarity and sympathy for workers or small businesses, Sevilla told Axios.
Reality check: By encouraging tips, businesses can sidestep giving employees raises, Sevilla said.
- And in the complicated economic environment we're in — not enough workers, especially in service industries, and rising costs thanks to inflation — employers are eager to find ways to keep staff.
Zoom in: Brad Cunard, the owner of Little's Food Store in Cabbagetown, told Axios he doesn't make a habit of tipping when it's not expected, and his team doesn't expect customers to tip on retail purchases.
- Staff at the neighborhood market and grill aren't paid tip wages, so gratuities are "always optional," he said.
- Customers do have to tap a tipping option to complete the transaction on the store's point-of-sale system, Cunard told Axios.
- "It is there," he said. "I wish it wasn't."
We want to know: How have your tipping habits changed in recent years? Does the tip-screen give you anxiety?

