Tip Creep

Tip creep is the expansion of businesses prompting consumers to tip for services, such as serving, bartending, food delivery, and nannying. It may also refer to the rising percentage of the initial bill consumers are suggested to tip.

The term gained popularity (along with tip fatigue and tipflation) in January 2023 due to several factors:

• Inflation - The rising costs of goods led more consumers to be conscious of how much they tipped,
• Electronic card readers - These devices have replaced tip jars on counters that typically collected spare change. Now, as consumers complete purchases, they are prompted by the directions on the screen to tip a percentage (20% or more) of the bill. The devices also create social pressure to tip regardless of the service quality for fear of being judged by others who can see the screen.
• More business asking for tips - The number of establishments asking for tips has increased, causing people to feel overwhelmed and frustrated.