The New Tipping Culture and the Effects on Consumer Behavior & Business

New tipping culture prompts questions and confusion about gratuity habits.

Tipping opportunities have increased, but readiness to tip has decreased.
Inflation and confusion contribute to tipping reluctance.
Tipping fatigue negatively affects workers who rely on tips.
Businesses can address the issue by educating consumers, communicating tipping policies clearly, or exploring alternative models for fair wages.

Here’s a familiar dilemma: you walk into your favorite local coffee shop, grab a latte, and as you’re about to pay the screen prompts you: “Add a tip?” This scenario has become a staple in our modern lives, reflecting a new tipping culture that often leaves more questions than cash in the jar. So, what’s behind the shift in gratuity habits and what does this mean for businesses and workers who rely on tips?