Once upon a time, tipping in America was straightforward. Dining out meant leaving 15% for good service, or 20% for exceptional service. This was the social norm we all understood.

In my early sales training, I was taught to present three options to customers, creating a gap between the first and third choices. Most people, wanting to avoid being perceived as cheap, would choose the middle option. This same psychology applies to tipping; few want to feel stingy when faced with the pressure of leaving a gratuity.

Fast forward to 2025, and tipping norms have skyrocketed to 25%, 28%, and even 30%. This escalation has spiraled out of control. You order a $5 latte, and before you can take a sip, the card reader prompts you for a 30% tip—despite the fact that you poured your own milk and grabbed your own napkin before even receiving service. How did we end up here?

The rise of technology, inflation, and lingering pandemic habits have shifted the burden of payroll onto consumers. As tipping reaches 30%, we may be nearing a breaking point.

The Digital Guilt Trip

In the past, we calculated tips mentally. Now, point-of-sale systems like Square, Clover, and Toast present pre-set tip options—20%, 25%, and 30%—with the custom tip option hidden away. Often, a default 20% gratuity is added without clear communication, forcing you to navigate a tip already included on your bill.

Let’s face it: the cashier often turns the screen toward you, watching as you make your choice, while customers in line behind you observe too. It’s not just about payment; it’s a social experiment in generosity and public pressure. This phenomenon has led many to label it “guilt tipping,” which feels more like extortion.

Shifting Responsibility

Inflation is often cited as a key factor in the rise of tipping. A burger that cost $10 a few years ago had a 20% tip of $2. Now, that same burger is $14 or $15, meaning your 20% tip costs more. Yet, digital prompts are pushing tips higher than ever, with options like 20%, 22%, 25%, and 30% becoming the norm. As a result, your tip has nearly doubled in dollar terms since 2019.

Who Should Pay Wages?

Here’s the uncomfortable truth: it’s not the customer’s role to cover a company’s payroll—that’s the employer’s responsibility. If a bakery raises its hourly wage from $14 to $18, that’s a business cost. Instead of increasing menu prices transparently, many establishments raise tip prompts, quietly shifting payroll expenses onto customers.

This is silent inflation. Your coffee hasn’t changed in size, but your bill has increased as you cover part of the employer’s wage alongside rising food prices.

The Expanding Definition of “Tippable”

Tipping traditionally applied to service jobs reliant on gratuities—servers, bartenders, and delivery drivers. Today, tip requests appear at self-checkout kiosks, bakeries where you serve yourself, and even car washes where you never interact with an employee.

Consider companies like Uber, which once promoted a no-tipping model. Now, you’re in a strange dynamic where both you and your driver rate each other. If you skip the tip, how do you think that will affect your rating?

As every transaction becomes “tippable,” tipping shifts from a reward for exceptional service to just another budget line item.

Are You Tipped Out?

Mandatory tips dilute the essence of tipping. This is why many people enjoy dining in Europe, where tipping isn’t a concern. Customers often tip from a sense of obligation rather than genuine appreciation. When tipping becomes automatic, the motivation for excellent service diminishes—and it’s diminishing every day. For families grappling with inflation, an extra 5–10% on each meal is significant.

Can We Reset Tipping Culture?

A cultural reset is necessary. Businesses must be transparent about wages and service fees instead of relying on customers to fill the payroll gap. Payment systems should stop defaulting to high-tip suggestions, allowing customers to tip based on service quality rather than a screen’s prompt.

Next time the device displays 30% as the first option, remember: you’re rewarding service, not covering the employer’s wage bill.

Consider always selecting the custom option to tip what you believe the service is worth. If we’re not careful, 30% won’t just be the ceiling—it could become the starting point.