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Business Daily

How Covid shifted US tipping

Business Daily

BBC

News, Business

4.4796 Ratings

🗓️ 17 April 2023

⏱️ 18 minutes

🧾️ Download transcript

Summary

Has people using less cash and higher tip suggestions on pay terminals increased expectation on customers?

Tipping has a long history in the United States, but there is evidence that the coronavirus pandemic has changed the culture and percentages involved.

Presenter Rick Kelsey speaks to waiting staff in New York, travel experts and explores the legal rules around tipping.

Presented and produced by Rick Kelsey

(Image: Someone placing dollars into a tip jar. Credit: Getty Images)

Transcript

Click on a timestamp to play from that location

0:00.0

tipping whether you live in the US or are just traveling there it's part of American culture

0:06.9

but what if that culture was changing you know maybe five 10 years ago 15% was more standard than

0:13.6

what I think is now 20% the tip lines that they are providing for us now I see a lot of ones that

0:19.5

start of 18 or even 20 and go up to

0:21.8

20, 22 and 25%. COVID has reduced the amount of cash being used and that's had a knock on effect.

0:28.6

So it is a kind of an increased social pressure via machine, as it were, to add that to the bill. So instead

0:37.0

of paying the server adequately, the restaurant

0:40.6

is somehow tacking on that charge after you're already paying the advertised price. But it comes

0:47.3

at a time when the economy is slowing and people have less money. So what's the etiquette?

0:52.8

I'm afraid it used to be the case that you could get away quite happily anywhere with 15% in a tip.

0:59.9

If you do that now, I think it would be more or less the equivalent of saying, I thought that was pretty lousy, frankly.

1:08.1

On this episode of Business Daily with me, Rick Kelsey, we'll be looking at the history

1:12.1

of tipping in the US, what the law says about it, how it can impact how much you get paid,

1:17.8

and how it's changed in the last couple of years.

1:24.5

When we think of tips, one of the first images for many of us will be restaurants. So let's

1:29.9

head into the steam of New York City and get into the mind of someone who's got, well, a love-hate

1:35.7

relationship with gratuities. Darren Cardosa is a waiter and also writes for the US magazine Food

1:42.2

and Wine. Hello, Darren.

1:46.0

Hi, hi, Rick. Thank you.

1:50.2

Tipping. Has it all got out of control recently?

1:52.9

I feel like it has.

1:55.5

I know that here in the United States,

...

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