--- title: Have we reached peak tipping? - The Hustle description: Tipping has risen over the past two years, but recent data suggests it’s falling back to pre-pandemic levels. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/382010278-HS-News-Brief_2022-05-31T002515.811Z.webp --- # Have we reached peak tipping? ![Mia Sullivan](https://thehustle.co/wp-content/uploads/2020/04/0-4.jpeg?width=48&height=48&name=0-4.jpeg) [Mia Sullivan](https://hs-sbup.thehustle.co/author/mia-sullivan) Published: May 31, 2022 Updated: October 11, 2023 Would you like to add a 30% tip to that $6 oat milk latte? ![Have we reached peak tipping?](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/382010278-HS-News-Brief_2022-05-31T002515.811Z.webp?width=595&height=400&name=382010278-HS-News-Brief_2022-05-31T002515.811Z.webp) According to *The New York Times*, a trend toward [bigger and more frequent tips](https://www.nytimes.com/2022/04/19/dining/tipping-gratuity-restaurants.html) since March 2020 is due in part to cultural pressure to support frontline workers and the proliferation of digital tip menus. #### **Research shows…** … serving up tip choices to customers generally leads to bigger tipping. A [working paper](https://www.gsb.stanford.edu/faculty-research/working-papers/economic-value-norm-conformity-menu-opt-out-costs) from the Stanford Graduate School of Business analyzed millions of NYC taxi rides, and found the average tip jumped by ~11% when customers were given menus with three tip options. Then, there’s the social aspect of tipping. Tip menu options served up on point-of-sale tablet apps, like Square, can make it awkward not to tip — especially if the worker can see your choice. It’s also easier (and [less shameful](https://www.gsb.stanford.edu/faculty-research/working-papers/economic-value-norm-conformity-menu-opt-out-costs)) to tap a percentage option versus doing math in your head. #### **But tip menus can backfire…** … if the options are too high. For instance, if options start at 25% and scale up to 30%-35%, customers may view it as [exploitative](https://www.wsj.com/articles/menu-of-tipping-options-people-tip-more-11653067512?mod=lead_feature_below_a_pos1) and tip less in response. Tipping fatigue is setting in, too: Now that inflation is sky-high and the restaurant scene is returning to normal, customers feel less compelled to tip everywhere, per *NYT*. At quick-service restaurants, the average tip is declining. In April 2020, the average tip was [23.5%](https://www.nytimes.com/2022/04/19/dining/tipping-gratuity-restaurants.html); this year, it’s down to ~20%. 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