Tipping is a common practice in America, with customers regularly leaving an extra 10-20% for servers, bartenders, taxi drivers, hair stylists and other service workers. But why is tipping such a big part of the culture here? There are several reasons tipping became so prevalent in the U.S.
The history of tipping in America
Tipping first became popular in the late 19th century in America. There are a few theories on how it started:
- Wealthy Americans traveling in Europe saw tipping was customary there. They brought the habit back home with them.
- The first tippers were likely wealthy patrons giving tips to servants at hotels and restaurants they frequented.
- After the Civil War ended slavery, more African Americans worked in service jobs. Customers tipped them instead of paying them fair wages.
During Prohibition in the 1920s, tipping became even more commonplace. With alcohol sales banned, customers would tip servers and bartenders to ensure good service. From there tipping continued to grow until it became standard across services.
Why tipping caught on
There are several reasons tipping culture took hold and continues today in America:
- Lower wages for service workers – Other countries pay servers a living wage. But federal minimum wage for tipped workers in the U.S. can be as low as $2.13/hour. Tips supplement their income.
- Guilt about slavery – Some trace tipping to guilt over slavery. Tipping was a way to get black workers to provide superior service.
- Prohibition – As mentioned, tipping became popularized during Prohibition in the 1920s to ensure good service.
- Reward for good service – Tips encourage servers and other workers to provide better service to customers.
- Status symbol – Leaving big tips can be a way for high rollers to show off wealth and power.
- Immigrants in hospitality – Many immigrants work service jobs. Tipping gave customers power over them.
While the exact origin of tipping in America may be murky, it clearly grew over time due to economics, culture, discrimination and other forces.
Why tipping remains common
Tipping has become customary and expected in the U.S. Here are some of the reasons it remains entrenched today:
- Waiters and other workers rely on tips to make a living wage. Without tips, their take-home pay would often be under minimum wage.
- Most customers are used to leaving a tip and follow social norms.
- Fear of judgement or bad service if a customer doesn’t tip.
- Some employers can legally pay under minimum wage, as tips fill the gap.
- Tax benefits – tips are often underreported, so workers avoid taxes.
- Lack of public momentum for change, unlike some other countries that abolished tipping.
Due to this mix of factors, tipping remains strongly embedded in American culture compared to most other countries.
How much are you expected to tip?
The standard tip amount at restaurants is 15-20% of the total bill. For good service, 20% is the norm. Here are typical tipping amounts across services:
| Service | Tipping Norm |
|---|---|
| Restaurant waiters/waitresses | 15-20% of total bill |
| Bartenders | $1-2 per drink, 15-20% of tab |
| Food delivery | 10-15% of order total |
| Taxis | 15-20% of fare |
| Hair salons | 15-20% of bill |
| Hotels | $2-5 per night for housekeeper |
Some situations where tips are often expected in the U.S. include:
- Sit-down restaurant dining
- Drinks at a bar
- Food delivery services
- Valet parking workers
- Hotel housekeepers
- Tour guides
- Spa and salon services
- Taxis
- Baristas
The debate around tipping
Recently, there has been more debate around tipping practices in America:
- Ensures good service – Some argue tipping motivates workers to provide better service. But others say workers should give good service regardless.
- Unfair to workers – Fluctuating income from tips makes it hard for workers to budget and pay bills.
- Lets employers off the hook – Allowing lower minimum wages for tipped workers shifts the burden to customers.
- Rewards discrimination – Research shows white servers get larger tips than black servers for similar service.
- Obligates customers – Some feel pressured to tip even for poor service or mandatory tips on bills.
- Confusion over amounts – Lack of tipping standards leads to confusion. How much should you tip a barista or hotel maid?
While tipping is still standard, there are evolving views on the practice.
Should tipping be banned?
Some advocate that tipping should be abolished like in many parts of Europe. However, ending tipping could have downsides:
- Lower pay for tipped workers unless wages rise dramatically to compensate.
- Potentially worse service with less incentive.
- Higher prices at restaurants and other services to make up costs.
- Major cultural shift as tipping is ingrained in America.
Realistically, tipping will be hard to eliminate given how embedded it is culturally and economically. More viable solutions may be:
- Raising the tipped minimum wage above the current very low levels.
- Ending the sub-minimum wage for tipped workers entirely, making employers pay them normal minimum wage.
- Adding mandatory service charges on bills to spread the cost more evenly.
- Capping maximum tip amounts to reduce large disparities.
While banning tipping may be unlikely, measures can be taken to improve fairness and transparency in the system.
The future of tipping
It’s unclear if tipping will ever be abolished in America, as it’s so culturally ingrained. But there are some possible shifts on the horizon:
- Higher base pay – More establishments may institute higher base salaries for workers to rely less on tips.
- Service charges – More places could add mandatory service charges to bills to spread the cost.
- Tip jars going digital – Digital payment options and prompts could replace cash tip jars.
- Higher tipped wages – The federal subminimum wage may rise to reduce reliance on tips.
- Lower tipping amounts – Younger generations tip less, so amounts may gradually decline.
While tipping is unlikely to vanish completely anytime soon, Americans’ attitudes and behaviors around tipping do appear to be evolving. The customs and norms around tipping may slowly change and adapt over time.
Key takeaways on why tipping is so big in America
- Tipping first became popular in America in the 19th century.
- It caught on due to economics, discrimination, Prohibition and other cultural factors.
- Tipping remains prevalent because workers rely on tips, social norms reinforce it, and laws allow lower wages.
- The typical restaurant tip is 15-20%, but tipping customs vary across services.
- Views are mixed on whether tipping is good or bad for customers, workers and businesses.
- Tipping is unlikely to be banned but policies could make it more fair.
- Attitudes and behaviors around tipping may gradually shift over time.