Majority Call Modern Tipping “Ridiculous”
Automatic tipping for nearly every service may be losing steam. A new survey released by Popmenu found that close to 80% of American consumers now describe current tipping practices as excessive, while 44% report leaving smaller gratuities than they did a year ago.
The shift is being felt most sharply in industries where workers depend on tips as a core part of their income. Hospitality employees, restaurant servers and delivery drivers are among those most exposed to the downturn.
“Tip-reliant professions are feeling the financial impact of tipping fatigue more than anyone,” said Brendan Sweeney, CEO of Popmenu. He added that rising costs for food, energy and other essentials are squeezing disposable income, influencing how customers approach gratuities.
Restaurants See the Largest Pullback
The restaurant sector shows the most visible impact. About 35% of consumers say they have reduced their restaurant tips in 2026. The retrenchment extends beyond dining rooms into other service categories.
Top areas where consumers report cutting back include:
Restaurants, 35%
Grocery delivery, 24%
Hotel staff, 19%
Taxi and ride services, 19%
Auto repair, 19%
Hair salons and barbers, 18%
Many businesses have raised suggested gratuity levels on digital payment screens, often starting at 18% or 20%. However, diners appear increasingly resistant to preset options. The survey found that 36% of customers now choose a custom tip rather than selecting a suggested amount.
When prompted by a digital screen, 59% of consumers say they feel obligated to leave a tip. That figure has declined from 66% in September 2025, indicating a softening of social pressure.
Declines Across Multiple Service Categories
The pullback is reflected in several specific tipping behaviors:
39% tip at coffee shops, down from 46%
41% tip restaurant servers 20% or more, down from 45%
27% tip at food trucks, down from 32%
22% tip at fast food restaurants, down from 27%
15% tip restaurant delivery drivers 20% or more, down from 23%
The data suggests that while tipping remains common, consumers are adjusting percentages downward or opting out in more casual settings.
Regional Differences Emerge
A separate survey conducted by Toast found that California residents leave the lowest average restaurant tips in the country at 17.2%, compared with a national average of 19.2%.
The Popmenu survey, conducted March 15–16 among 1,000 U.S. adults ages 18 and older, highlights growing consumer fatigue with expanding tipping norms. As businesses continue to rely on gratuities to support wages, the evolving consumer mindset may reshape compensation models across service industries.
