New York (CNN) 鈥 Americans are being asked more and more often whether they would like to tack a tip onto their check, sometimes facing a screen that reads 鈥渁dd a tip?鈥
Whether it鈥檚 paying for coffee, picking up food at a restaurant counter, or taking a ride-share, a tip is now requested 鈥 but is it required?
鈥淚t鈥檚 tricky everywhere,鈥 said New Yorker Carly Cullen.鈥滻f you鈥檙e at a coffee shop, if you鈥檙e out at the hairstylist, if you鈥檙e coming out of a taxi – I don鈥檛 know the rules then, and I often don鈥檛 know what to tip.鈥
Cullen said she feels pressured to tip when faced with the question and almost always does. But customers don鈥檛 like it.
A recent study by Purdue University and Temple University found that in a high number of cases, participants who were presented with a tip screen had more 鈥渘egative emotions to the payment experience鈥 than those who didn鈥檛. And that wasn鈥檛 even a real-world scenario.
Tipping has long been standard in some professions, of course, for such workers as restaurant servers and bartenders. They rely on tip income as federal minimum wage excludes many restaurant and hospitality workers. Meanwhile, tip jars have long existed at the cash registers of bakeries, bodegas, or coffee shops.
What鈥檚 different now is that tipping requests are spreading throughout industries and situations, and popping up on computer check-out screens, say at your local Starbucks or pizza place. Upping the pressure: the customer鈥檚 decision to tip or not to tip is often made right under the employee鈥檚 and other customers鈥 watchful eyes.
At Provisions on State 鈥 a butcher shop in New Haven, Connecticut 鈥 there is no table service, no cooking or serving. And yet, when customers check out, a screen asks if they would like to tip.
鈥淭hese men and women have a knowledge base that they鈥檙e sharing and taking care to share with the guests that come through the door,鈥 said Emily Mingrone, owner of Provisions on State and two restaurants in the area. 鈥淎nd [the guests] aren鈥檛 pressured to tip, but they want to because they鈥檙e paying for a service provided.鈥
Her butcher shop employees鈥 wages don鈥檛 change because of the tips they receive. Instead, Mingrone sees the tips as a bonus.
But it鈥檚 a different story in her two restaurants: Fair Haven Oyster Co. and Tavern on State.
Mingrone pays her kitchen staff between $20-25 an hour, well above minimum wage. However, those employees aren鈥檛 eligible for tips. Comparatively, her front of house staff 鈥 servers and bartenders 鈥 make the state鈥檚 tipped minimum wage of $6.38 an hour. But add tips to that sum and it brings their hourly wage to about $40 an hour.
鈥淭he unevenness of it, my whole career has always bugged me because I鈥檝e worked both sides of it. I鈥檓 kind of exploring what that looks like from a business owner perspective,鈥 said Mingrone.
But there is no easy answer. In 2015, restaurateur and owner of Union Square Hospitality Group Danny Meyer ended tipping, instead creating a 鈥淗ospitality Included鈥 policy for guests. But during the pandemic, when restaurant attendance suffered, he ended that policy and returned to the traditional tipping model.
Eight states have abolished their tipped minimum wage. One Fair Wage, the group leading the movement, wants businesses to be required to pay employees the state鈥檚 minimum wage, plus tips.
Some business owners say that could backfire. 鈥淚鈥檓 against it and I think frankly it鈥檚 kind of clueless,鈥 said Mingrone. 鈥淭hat鈥檚 money that鈥檚 going to come out of my pocket, take away from the people that aren鈥檛 getting tipped. I would need to raise my prices, which then causes pushback from the guest.鈥
The Nation Restaurant Association, an industry trade group, estimates a $1 increase in the federal tipped wage could cause a 6.1% decrease in employment and up to 5.6% loss in quarterly earnings for employees.
鈥淔ull-service operators should have the option to choose a compensation model that works best for them, their servers, and their customers. Tipping enables lower costs for operators, higher wages for workers, and a professional level of customer service for diners,鈥 said Sean Kennedy, executive vice president for public affairs of the National Restaurant Association.
The concern from the restaurant community is customers would be less inclined to tip because food prices might rise to offset what restaurants would now have to pay in wages. That could mean less take home pay for servers, making it harder to find staff than it has been since the pandemic prompted many workers to leave the business.
The federal tipped minimum wage is $2.13 an hour and has been frozen there since 1991 鈥 and many states default to that. Doing away with that would at least bring state wages to the federal minimum wage of $7.25 an hour, although the One Fair Way group is advocating for closer to $15.
Some longtime workers worry that as requests for tips proliferate in many situations, a backlash against tipping will cut their pay.
Destiny Fox has been working in restaurants since she was 16 years old. She works at two restaurants 鈥 Gene and Georgetti鈥檚 and Coco Pazzo 鈥 in Chicago. She鈥檚 paid just above the city鈥檚 tipped wage, taking home $9.40 an hour. Tips make up the rest of her income 鈥 and represent 80% if her total take home pay.
She鈥檚 opposed to getting rid of the tipped wage because she believes working for tips makes for better service.
鈥淚t would damage the city big time. It would push business out of the city, push people out of the city, customers even. I don鈥檛 think they would be coming to restaurants if they don鈥檛 get the service that they鈥檙e used to. I don鈥檛 think it鈥檚 a good idea at all,鈥 she said.
鈥淭hat鈥檚 how I live 鈥 is with tips,鈥 said Fox.
The-CNN-Wire
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