Tipping has long been a cultural norm in many parts of the world, particularly in the United States, where it is deeply embedded in dining and service-related industries. However, what was once seen as a gesture of appreciation for exceptional service is increasingly becoming an expectation — and in some cases, it’s automatic.

This shift has left many customers feeling uncomfortable, particularly when tips are requested or even pre-selected for services like takeout, where there is minimal or no direct interaction. In this article, we’ll explore the evolution of tipping, how it has shifted from being a reward for excellent service to an expectation, and the broader implications this has on consumers, businesses, and the service industry.

The History and Purpose of Tipping

Tipping originated in Europe in the 17th century as a way for the upper class to reward their servants for good service. The practice spread to the United States in the 19th century, largely adopted by wealthy Americans who had traveled to Europe and encountered the custom. Over time, tipping in America became institutionalized, especially in industries like restaurants, hospitality, and personal services, where workers relied on tips to supplement low base wages. In many U.S. states, the minimum wage for tipped workers remains well below the standard minimum wage, with the expectation that tips will make up the difference.

The original intent of tipping was simple: it was a voluntary reward for good service, a way for customers to show their appreciation and for service workers to earn additional income based on their performance. It was a system that encouraged workers to strive for excellence, knowing that better service would result in a better tip. For many years, this relationship functioned relatively smoothly, with the understanding that tipping was directly tied to the quality of service provided.

The Rise of Automatic and Expected Tipping

Recently, however, the practice of tipping has undergone a significant transformation. One of the most striking changes is the increasing use of digital payment systems that automatically include tips or strongly encourage tipping, even for services that have traditionally not required it. For example, customers ordering food for pickup, where there is no table service involved, are now often prompted to tip as part of the payment process.

Take the case of Texas Roadhouse, where one customer shared their experience of placing an order for pickup online, only to discover that a 10% tip had been automatically added to the bill by default. The customer had to manually unselect the option, as it was pre-selected for them. This practice of automatically including a tip, or at least presenting it as a default option, is becoming more common, turning tipping from a discretionary decision into an expectation.

A similar experience occurred at Jet’s Pizza, where the customer was asked if they wanted to leave a tip when paying for a pickup order. While in this case the tip wasn’t automatically added, the fact that tipping was even suggested for a pickup order illustrates how businesses are increasingly expecting customers to leave tips for services that don’t involve direct interaction.

At Applebee’s, another popular chain, the same scenario unfolded at the register for a pickup order. The customer was prompted to leave a tip despite the absence of any traditional table service. These examples highlight a broader trend: tipping is becoming expected even in situations where the service provided is minimal or where tipping historically wasn’t part of the transaction.

Why is Tipping Becoming Expected?

Several factors have contributed to the shift from tipping as a reward for service to tipping as an expected or even automatic part of transactions.

  1. Digital Payment Systems: The rise of digital payment systems has made tipping more convenient, but also more intrusive. Many of these systems are designed to suggest or even pre-select a tip amount, often with multiple percentage options presented to the customer. This design encourages tipping by making it a default part of the transaction rather than an optional add-on. Customers often feel pressured to select one of the preset options, especially if they are paying in person and don’t want to appear cheap in front of staff or other customers.
  2. Service Industry Economics: In many states, the minimum wage for tipped workers is still below the federal minimum wage. As a result, workers rely heavily on tips to make a living wage. In some cases, restaurants and other service-related businesses may be trying to help their workers by encouraging tips, even for tasks like takeout or delivery, which might not traditionally warrant them. This shift helps to redistribute some of the costs of labor onto the customer, but it also blurs the line between services that truly deserve tips and those that do not.
  3. Cultural Norms and Social Pressure: Over time, tipping has become an ingrained cultural expectation in the U.S., particularly in restaurants. As this expectation grows, so too does the pressure on consumers to tip in more and more situations. Even if a customer feels that a tip is unwarranted, they may still feel social pressure to leave one in order to avoid being seen as stingy or unappreciative.
  4. Pandemic and Contactless Transactions: The COVID-19 pandemic accelerated the adoption of contactless payment systems, many of which include automatic prompts for tips. As more people ordered food for takeout or delivery during lockdowns, they were frequently presented with tip options during online checkout, normalizing the practice of tipping for these services. This habit seems to have persisted even as in-person dining has returned.

Tipping for Takeout: A Point of Contention

One of the most contentious areas in the modern tipping debate is tipping for takeout orders. Traditionally, takeout orders were not tipped because there was no table service involved. Customers simply picked up their food and left, without interacting much with staff. However, as businesses increasingly prompt customers to tip for takeout, many are left wondering whether this practice is justified.

From a customer’s perspective, the service involved in preparing a takeout order is minimal compared to full-service dining. While there is undoubtedly labor involved in preparing and packaging the food, it is often seen as part of the basic service provided by the restaurant, rather than an extra service deserving of a tip. For customers who believe in paying for performance, the idea of tipping for takeout can feel like rewarding participation rather than actual service.

On the other hand, from the restaurant staff’s perspective, there is still work involved in preparing takeout orders, and these tasks often fall on the same employees who rely on tips for their income. For example, a server might take time away from their regular tables to handle takeout orders, or a kitchen worker might be responsible for packing the food. In these cases, encouraging customers to tip for takeout can help ensure that all workers are compensated fairly.

The Case for Performance-Based Tipping

At the heart of the tipping debate is the idea that tips should be based on performance. For many consumers, like those who consider themselves “thrifty if not cheap,” tipping is not about simply following societal norms but about rewarding good service. This perspective is rooted in the belief that tipping should be voluntary and that it should reflect the quality of the service provided.

When tipping is automatic or expected, it undermines this principle. Instead of encouraging workers to provide excellent service in order to earn a tip, it creates a situation where tipping is seen as an entitlement rather than a reward. This can lead to frustration on the part of customers who feel that they are being asked to tip for subpar service or for tasks that don’t truly warrant it.

In an ideal world, tipping would remain a way for customers to express their satisfaction with the service they receive. Workers would be incentivized to provide excellent service, knowing that their tips would reflect their efforts. However, as tipping becomes increasingly expected and automatic, it risks losing its original purpose as a tool for rewarding good service.

Conclusion: A Balanced Approach to Tipping

The evolution of tipping from a discretionary act of gratitude to an expected part of the payment process is a complex issue. While digital payment systems and changing cultural norms have made tipping more prevalent, this shift has also sparked a debate about when and where tipping is appropriate.

For consumers, the key is to remain mindful of the purpose of tipping: to reward good service. While it’s important to support service workers, especially in industries where wages are low, tipping should not become an automatic obligation for minimal service. For businesses, transparency and fairness in how they encourage tipping can help maintain the balance between supporting workers and respecting customers’ right to choose when to tip.

Ultimately, the decision to tip should remain in the hands of the customer, based on the quality of the service they receive, not on automatic prompts or social pressure.