Tired of “tipflation”? It’s time to talk about the tipping backlash! According to Bankrate, 2/3 of Americans now hold a negative view of tipping, and the number of consistent tippers is declining. Digital payments and automatic tipping prompts are fueling the frustration. Eliminating tipping practices is challenging, as restaurants that replace tipping with higher menu prices often face negative online ratings, warns Professor Michael Lynn from Cornell University.
Let’s look at a real-world example: Molly Moon Neitzel, owner of Molly Moon’s Ice Cream Shop, shares her annoyance with the tipping culture. It’s awkward and never feels good! Technology has made it easier for non-traditional businesses to discreetly request tips through electronic bills, avoiding awkward in-person interactions. At Molly Moon’s, credit card processors benefited the most from tips, but disparities in pay were revealed, with Black employees earning less. Molly Moon’s took action, offering a minimum wage of $21/hr, comprehensive benefits, and adjusted prices to ensure fair compensation.
Shifting the money flow while providing fair wages and benefits—customers didn’t end up paying more overall!
SOURCE:
https://www.cbsnews.com/news/tiplflation-digital-prompts-ask-for-tips-backlash/
