"For the first time since 2015 (as far back as this data went), the average amount that customers tip at any of Square's payment terminals and kiosks - and if you've bought anything in the past ten years, you know these terminals are everywhere - has dropped below 15 percent. That includes full-service restaurants, where the average tip is down to 14.65 percent; and cafés, where customers tip an average of 14.56 percent."
"There are many theories as to why tipping is down: tip fatigue; economic worries; the inflated price of goods, which makes a $1 tip "less" than it once was. But I thought about a recent experience at a nice coffee shop where I picked a $25 bag of beans off a shelf and ordered a $6 iced coffee. I was prompted, by default, to leave a tip of at least 20 percent on the purchase: That's a $6.20 tip for a $6 coffee."
Square's data show average tips at its payment terminals and kiosks have fallen below 15% for the first time since 2015, with full-service restaurants averaging 14.65% and cafés 14.56%, and an overall average of 14.99%. Possible reasons include tip fatigue, economic worries, and inflation diminishing the value of small gratuities. Default digital tipping prompts on small purchases can push customers toward higher percentages and create friction when customers want to leave smaller amounts. The interface design often requires multiple taps to enter custom tips, producing annoyance despite many customers attempting to tip generously.
Read at Grub Street
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