Reports suggest that several coffee shops in Brooklyn are shaking things up with a new pricing model: instead of accepting tips, they’ve started automatically including them in the price of their coffee, including for takeout orders. This change has sent the price of a latte soaring to seven dollars, drawing significant attention.
Recently, two controversial trends related to tipping have emerged. One issue arises when customers view their bill on an iPad. Often, they see fixed tip options of 16%, 18%, 20%, and 25%, leaving them with little flexibility. This can be confusing. For example, a 15% tip might seem appropriate under normal circumstances, but if customers feel the service was lacking, do they still feel obligated to leave at least a 16% tip? This dilemma particularly impacts new immigrants who may not be familiar with the tipping norms.
Another trend is that service sectors that previously didn’t require tips are now introducing them. Takeout customers, in particular, are increasingly confronted with requests for tips at the time of payment. Opting not to tip can lead to noticeable disapproval from the staff, while those who do tip may feel reluctant.
When it comes to enjoying coffee in a café, tipping is generally expected. However, many customers skip the tip when ordering takeout coffee. To address the hesitance around tipping, some businesses have integrated tips into the total price, effectively nudging customers to pay. This might simplify the process for those who are inclined to tip for takeout, but it could also drive away those less willing.
Ultimately, maintaining customer trust is crucial for a successful business. Losing customers over what amounts to a small tip isn’t worth the trade-off.
Returning to the tipping debate, in a restaurant setting, the discussion often centers on how much to tip, while in a store context, the focus shifts to whether tips should be collected at all, favoring voluntary contributions from customers.
