"Tipflation" could be blamed on tablets or the post-pandemic economy — but consumers seem to be giving in to the pressure and leaving more cash behind.
Sure, most Americans report feeling negative about tipping, but service workers are earning exponentially more in gratuity than before the pandemic, according to payroll provider Gusto.
From March 2020 to May 2023, hourly wages only rose 18%, compared with a 42% increase in tip earnings, the company found.
Of the 300,000 small and medium-sized businesses included in the analysis, bar workers made more in tips than employees in other service industries.
Kabir agreed, saying he tips upwards of 40% for particularly good bar service.
Persons:
Saad Kabir, Haley Truchan, Kabir, Yonas Haile
Organizations:
New York City Public Schools, CNBC, Bar, Fidelity Investments
Locations:
Manhattan