Yahoo Finance Live examines a study measuring decreasing trends in tipping servers and gig workers as inflation concerns rise and the pandemic continues.
Video Transcript
DAVE BRIGGS: One of the positive impacts is we all became better tippers, from 50% to 90%– a staggering 90% in the pandemic of experiences brought about tips. Well, that number is starting to come back down, and perhaps inflation has something to do with it. 85% just a month ago, down to 84% now, these all numbers from Square. So the question is, is it inflation, or, guys, was it tipping fatigue?
Rachelle, I got personally a little bit tired of all the reminders to tip everywhere I went throughout the entire pandemic. Yes, I think inflation certainly has something to do with it, but every time you pay with a credit card and you’re staring at a screen that asks you to tip $1 on a sandwich or an overpriced cup of coffee gets a little old. What do you think?
RACHELLE AKUFFO: I mean, I do think it does depend on where you are when you’re tipping because, obviously, when you think of things like some of these delivery drivers, they get such a small percentage. You do feel like you have to tip more. They’ve come all this way. They’ve exposed themselves to potentially catching COVID, just so we could sort of sit home and be comfortable. I do feel better about tipping there.
I did see there were a lot of restaurants building in their gratuities. And so if that continues to be the case, I’m not sure I’ll continue to tip as much. But I do still spare a [INAUDIBLE]. I mean, it’s a hard job. You know, it’s not easy. And you hope that the service will also match the gratuity. Brad, what do you think?
BRAD SMITH: Look, my first job was in the food services industry. I’m more than happy to figure that out in terms of my own experience and what that has to factor in, in terms of the costs of my experience if I eat out or if I get a delivery in one mechanism or another. And I think it’s been noticeable for consumers who also have to think about at the same time, OK, can I afford to also continue to do this on an extended period? Because I think that’s what we’re also talking about, some of the pandemic era norms, as they continue to get pulled forward for the tipping, how in the future does that adjust as well.
DAVE BRIGGS: Just to be clear, the restaurant tipping is actually up, up to 21% on average when you’re in a restaurant. So that has not fallen. We’re talking about other experiences. Could be your hairstylist, could be your cup of coffee, and those are the ones that I think are falling just a bit, guys.
RACHELLE AKUFFO: Well, hopefully, people are doing what they can and supporting where they can. We’ll have to leave that conversation here for now.
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