Tipping is so engrained in American culture that it almost feels dirty to leave a restaurant or receive a service without leaving behind that extra 20%. In most countries around the world tipping is generally not expected, and in some cases may even be seen as rude. Essentially, almost anyone outside of the U.S. would agree that America’s tipping culture is out of control – and, well, we’re right there with them!
In WalletHub’s recent 2025 Tipping Survey, they asked 200 people questions on a variety of topics, such as when people believe they should have to tip, whether they feel pressured to do so, and how they think gratuities should be split.
The study found that nearly 9 in 10 Americans think tipping culture has gotten out of control.
The thing about tipping culture is that it sadly exists because most employers fail to pay a living wage to workers in the service industry–nearly 3 in 5 Americans think businesses are replacing employee salaries with customer tips.
But tipping culture is expanding even beyond places like bars, restaurants, and salons, and it’s doing so at an alarming rate.
More and more establishments where you wouldn’t normally tip are asking for them, even sometimes at self-checkout machines where no human interaction is even had.
And tip suggestion screens are potentially doing the opposite of what they’re intending–nearly 3 in 10 Americans say they tip less when presented with one of these screens; maybe making the act of tipping a bit more impersonal is just what Americans need to keep those few extra bucks in their bank accounts.
To be clear, those that are taking the stance against tipping aren’t looking for employees to make less money–40% of people believe tipping should be replaced by an instant employee rating system so businesses can decide how much to pay their staff.
If an employee is constantly receiving positive reviews about their customer service, receiving a consistent wage that reflects that makes more sense, especially when more than half of Americans say they often leave a tip due to social pressure rather than good service.
John Kiernan, WalletHub Editor, stated:
Most people want to be generous, but they don’t want to be nudged or forced into generosity at every turn…You also have to remember that money is tight for most of us…Not having enough money to make ends meet puts a natural limit on people’s ability to tip…What people really want is for businesses to pay their own staff, rather than passing the buck to customers.
Though they’re few and far between, there are some restaurants around NYC that are deviating from the NYC dining industry norm either by not expecting tips or enforcing a no-tipping policy altogether. Temakase Hand Roll Bar, which opened in NoMad back in back in summer 2024, is one of those places.
And since tipping culture really does put a dent in our wallets, here are some fabulously free things to do in NYC. Check out the full study.