A Guide to Tipping and Tipping Culture in Utah and the U.S.

In this guide to tipping, you will learn the troubled history of tipping in the U.S., how attitudes about tipping are changing, and why Utah has a unique tipping culture. We’ll also give you some practical tips (haha, see what we did there?) on how to approach tipping in a way that’s both ethical and practical.

Table of Contents

1. Tip Creep and Americans’ Growing Confusion about Tipping
2. Where Did Tipping Come From?
3. How America’s Tipping Culture Evolved
4. Utah’s Unique Tipping Culture
5. A Guide to Tipping in Utah
6. Utah Tipping Cheat Sheet
7. The Pros and Cons of Tipping
8. Why Don’t We Eliminate Tipping and Pay Service Workers a Fair Wage?
9. The Future of Tipping
10. Frequently Asked Questions about Tipping
11. A Note on Tipping at Luxury Catered Events

Tip Creep and Americans’ Growing Confusion about Tipping

If you’ve found yourself facing a screen of tip options—18%, 20%, 25%, and the quietly judgmental “custom amount”—and been unsure about what to do, you’re not alone.

A 2023 Pew Research Center survey found that most Americans (72 percent) say tipping is now expected in more places than it was just five years ago. At the same time, the amount expected for a tip seems to have risen steadily; that old “15 percent of the bill” rule some of us were taught isn’t even an option on those screens anymore. The expectation of tips in more and more settings—a phenomenon known as “tip creep”—has left a lot of Americans confused about the new norms and etiquette of tipping. In fact, that same Pew survey found that only a third of us feel confident about when or how much to tip.

Here in Utah, that confusion runs even deeper. Our state consistently ranks among the lowest-tipping in the country, which puts locals and visitors in an uncomfortable position. Should we follow local customs, or should we swim against the grain and tip generously? What are the expectations here, and how should we adjust to new trends?

The societal norms and ethics surrounding tips can be complicated, but this guide to tipping will help you make sense of it all. We’ll give you the full picture of where the practice of tipping came from and how it evolved into a unique economic fixture in the U.S. We’ll analyze how current trends are changing tipping culture and try to understand what tipping looks like from the perspective of different parties: service workers, employers, and the tipping public. Finally, we’ll give some suggestions about how to be a wise and ethical tipper in Utah…or wherever you happen to face those imposing tip option screens.

Where Did Tipping Come From?

Tipping is at least four centuries old, although some historians argue that the practice goes back to ancient Greece and Rome. While the Greeks and Romans certainly had traditions of gift-giving, patronage, and hospitality, their gifts and stipends weren’t really the same as what we call tipping today.

Other historians suggest that the practice of tipping may have begun in feudal Europe when rich lords would toss a few coins to groups of beggars they encountered in their travels as a way to buy safe passage. One historian argues that the practice was started in the late Middle Ages by feudal lords who granted a small payment to laborers in appreciation for extraordinary services rendered or out of compassion for unusual hardships endured, like the death of a family member. But the most likely origin for the custom we know today as tipping seems to trace back to wealthy aristocrats in England during the 17th century.

Tipping in the 17th– 18th centuries

When English aristocrats would visit a friend’s estate, they often gave small payments called vails to the household servants who waited on them during their stay. Ostensibly, vails were intended to compensate servants for the extra work of caring for the guests on top of their regular duties. But from the beginning, vails weren’t merely an expression of gratitude; they were also a status symbol and a show of superiority by the upper class. A vail showed your aristocratic friends that you weren’t living off their charity—you could settle your own debts, thank you very much!

Over time, the practice of giving vails backfired on the upper class, and those voluntary gifts became not-so-voluntary. Servants came to expect and even demand vails from guests. There are accounts of disgruntled servants “accidentally” spilling food at dinner tables or injuring the stabled horses of stingy guests. When aristocrats met in London in 1764 to discuss abolishing the practice, their meeting was disturbed by servants throwing rocks through the windows of the meeting hall.

The elite classes found the practice of vails more and more onerous, and by the mid-1700s they succeeded in having vails abolished almost entirely. But by then the idea had already spread into public commerce. The practice of paying a little extra for superior service took root in restaurants, taverns, hotels, and English coffeehouses (which is where the word “tip” seems to have entered the language).

One popular story claims that a particular London coffeehouse, frequented by English writer Samuel Johnson in the mid-1700s, displayed bowls inscribed with the words “To Insure Promptitude” (abbreviated T.I.P.). Patrons supposedly would drop coins into the bowls to receive better service. However, historian generally agree that this is not the true origin of the term “tip” since the term was already in use prior to Johnson’s time. A more likely origin is the Dutch word tippen, which means “to tap,” as in tapping a coin on a table or against a glass to get a server’s attention.

Regardless of the term’s origin, the practice of tipping grew and spread throughout Europe.

How America’s Tipping Culture Evolved.

From the time tipping was introduced here in the United States, it has been a controversial and divisive subject.

Wealthy Americans traveling in Europe in the 1700s witnessed the custom of tipping and brought it home with them. Here in the U.S., it became a sign of wealth, sophistication, and familiarity with European customs. In fact, the Americans even upped the ante! While the average tip in European restaurants at the time was around 5% of the total bill, Americans increased that to 10%. Here in the U.S., the practice of tipping was met with fierce resistance from groups who saw tipping as incompatible with American democracy. In the eyes of many Americans, tipping was a relic of European class hierarchy, a way of making one segment of society servile to another.

In fact, the American opposition to tipping was so strong that six states (Arkansas, Iowa, Mississippi, South Carolina, Tennessee, and Washington) made tipping illegal. Anyone caught offering a tip could be fined or, in South Carolina, even thrown in jail.

However, just as had happened with vails in Europe, tipping gained popularity among the service workers who received those tips. Classism or no classism, American workers weren’t about to turn up their noses at “free” money! Eventually, service workers were able to get all the anti-tipping laws in the U.S. repealed or overturned. Tipping had found a permanent foothold in this country.

Today, tipping has gone from being seen as un-American to being a uniquely American institution.

Here in the states, people hold widely different opinions and expectations about tipping, which is partly foreign visitors often find American tipping culture confusing and difficult to navigate. At the same time, there are more intense social and ethical pressures around tipping in the U.S. than anywhere else in the world. Tipping (or not tipping) in America carries moral weight and judgment in ways it simply doesn’t in, say, Germany or Japan.

In most parts of the world (if they tip at all), tips are seen as an extra bonus, a voluntary gift given in appreciation for outstanding service. As one British visitor was quoted in a 2026 National Geographic article, “In most countries, tipping is a way of saying ‘thank you’—optional, contained and tied to good service. In the US, it felt compulsory, like a hidden tax.” There’s often an element of guilt involved in tipping in America, and a sense of duty to compensate for a service worker’s low wages. An American tourist in France commented “…how nice it is in Europe that they pay their waiters and waitresses and we don’t have to tip because of it.”

The Dark Side of Tipping in the U.S.

To understand why tipping culture in the U.S. is different from anywhere else in the world, it’s important to recognize that America’s tipping system didn’t evolve as a bonus on top of fair wages. Instead, it evolved as a substitute for wages or, at best, a supplement to make up the difference for low pay.

This trend began soon after the American Civil War when newly emancipated Black workers flooded into the hospitality industry, especially as rail car porters, restaurant servers, and hotel staff. Many employers seized on the practice of tipping as an excuse to pay their Black employees little or nothing, leaving them to rely instead on whatever income they could generate through tips. Over time, that practice of employers using tips as a justification for underpaying their workforce became part of the American way of doing business, and it continues to this day.

Part of what makes Americans’ relationship to tipping uniquely complicated is that tipping, for us, carries multiple contradictory meanings and obligations. On the one hand, most Americans say that they tip as a reward or incentive for extraordinary service—that’s the primary reason Americans give for tipping. On the other hand, we know we live in a country where service workers are typically underpaid, so we feel pressure to do our share to make sure workers receive at least a fair wage, even if their service is only adequate. When we receive service that isn’t great, Americans feel a wide range of obligations and considerations, including social judgment if we leave a small tip or no tip at all.

Operating in the background of all this is yet another complicating factor: Americans’ fierce resistance to being told what to do. American’s almost unanimously say that they are less likely to leave a large tip if they feel pressured or expected to do so. Yet our actions don’t always match our stated values. A 2025 survey revealed that the average American caves to tipping pressure 4.2 times per month, leaving a total of $24 more than they think is fair, due to social pressure.

Tipping and the Minimum Wage in America

Americans’ conflicted attitudes about tipping have had a huge effect on the development of a minimum wage in this country. In 1938, when Congress passed the Fair Labor Standards Act (FLSA) which introduced the first federal minimum wage, it explicitly excluded hotel and restaurant workers. (This was done to secure the support for the bill from Southern Democrats in Congress.) The FLSA allowed employers to continue paying those workers sub-minimum wages on the theory that tips would make up the difference.

Unfortunately, for many service workers tips did not make up the difference, and, in 1966, Congress finally acknowledged that fact. They amended the FLSA to include service workers. However, they simultaneously introduced a “tipped minimum wage,” allowing employers to pay service workers a much lower minimum wage as long as tips made up the difference. At least in theory, if a tipped minimum wage worker does not earn enough to match the standard minimum wage (counting base pay and tips together), then their employer is legally bound to make up the difference. Since 1991, the federal tipped minimum wage has been frozen at $2.13/hour.

A few states have passed a higher tipped minimum wage of their own, but in some states, including Utah, tipped workers can still legally be paid as little as $2.13 per hour before tips. What that means is that, for many service workers, tips aren’t a bonus; they are the bulk of their paycheck.

Unfortunately, despite state and federal laws that require employers to make up the difference and guarantee that their workers earn at least the minimum wage, those laws are difficult to enforce. Studies have shown that some tip-earning workers in America still earn less than minimum wage, even with tips added in—to the tune of several billion dollars every year.

Of course, it’s difficult for customers to know how much the people serving them are being compensated in their base pay and how much they rely on tips. Figuring out what’s fair can turn into a guessing game. And the stakes of that game become even higher when you realize that the workers who depend on tips are most often from economically vulnerable sections of society.

Women, minorities, and single parents make up the bulk of the workforce in many food, hospitality, and service industries such as hair or nail salons. The chart below shows the specific percentages of men, women, whites, and Hispanics in the U.S. who earn tips versus their total representation in the work force. For example, women make up only 46.9 percent of the total U.S. workforce, yet they hold 69.9 percent of tip-earning jobs in the country.

Percentages of Women and Hispanics in U.S. Workforce Who Work for Tips

Source: Economic Policy Institute

Since women and minorities hold most of the tip-earning jobs (which generally pay considerably less than non-tip jobs), they tend to feel more of the effects when some employers take advantage of tip-earning workers.

The ways that some employers take advantage of their tip-earning employees have traditionally extended beyond low wages. After the Civil War, some employers confiscating the tips given to their employees or charged employees for the right to work and earn tips at their establishment. Both of those practices are now illegal in the U.S. (although “service charges” added to a bill—such as an automatic 18% gratuity for large parties—are legally considered revenue of the employer, not a tip, so the employer can keep them). Still, such tipping laws are hard to enforce, especially since the burden of reporting abuse falls on the exploited worker who may not have the leverage to do much about it.

In addition to earning less overall than non-tip workers (with the exception of bartenders and front-of-house in upscale restaurants, who tend to earn more than the average non-tip worker), tip-earning workers in the U.S. are at a disadvantage in other ways. Tipped workers are less likely to have access to benefits such as paid sick leave, health care, short-term disability, and paid time off. Given their low wages, lack of benefits, and high poverty rates, it is not surprising that tipped workers rely on public assistance programs at higher rates than the overall workforce.

How COVID changed tipping.

The COVID pandemic brought about significant changes to the ways Americans think and act when it comes to tipping.

During the height of the pandemic, average tips for service workers went up in the U.S. This rise in tipping may have been due to increased public awareness and sympathy for the plight of service workers and for the heightened risks involved in their work. Customers were willing to give more in tips because they wanted to see businesses stay open and workers survive. Here in Utah, fast-casual restaurant tipping rose to 20% between spring 2020 and summer 2021. At the height of the pandemic, Utah’s average tip rate reached nearly 25%. The pandemic not only inspired people to tip more generously, but to give tips in settings where tips had not traditionally been offered—fast food places, coffee shops, grocery stores, online retailers, and more.

Eventually, the pandemic subsided, but the new tipping norms continued.

Part of what drove those new tipping norms was emerging technology that made it easier than ever for service workers to ask for a tip.

• Systems like Apple Pay and Google Pay made mobile payments routine, and the tip prompts on the screen encouraged at coffee counters, takeout registers, and other places where tipping had never been expected.
• Tablet-based point of sale (POS) platforms like Square, Toast, and Clover popularized the now-familiar swivel screen asking for 15%, 20%, or more. During COVID, these became nearly universal and more aggressive.
• Restaurants adopted QR menus and pay-at-the-table systems that let customers order and pay from their phones. These flows almost always include a tip screen, subtly reframing tipping as part of every transaction rather than a post-meal decision tied to service quality.
• Services like Uber Eats, DoorDash, and Grubhub surged during lockdowns. These platforms often prompt tipping before service is rendered, shifting tipping from a reward to a routine expectation.
• Peer-to-peer payment apps like Venmo and Cash App made it easy to tip individuals directly, cash-free, anywhere and anytime.

These technologies didn’t only digitize tipping; they reframed it. Tipping became more ubiquitous, more in-your-face, and more detached from traditional full-service hospitality.

However, the outpouring of generosity we saw from tippers during COVID seems to have worn off. Numerous recent surveys have shown that most Americans feel that tipping practices and pressures has gotten out of control, and they are pushing back. Recent surveys show that Americans are unhappy about “tip creep” (tips being expected in more and more settings) and “tipflation” (the rising size of expected tips).

Photo Credits: Logan Walker

Utah’s Unique Tipping Culture

What makes Utah’s tipping culture distinctive isn’t just that people tend to tip less overall; it’s the tension between expectation and resistance. In a state with a strong service economy and deeply ingrained norms around generosity and courtesy, many diners still hesitate when tipping feels automated, inflated, or unclear. The result is a kind of split standard: generosity in traditional tipping settings where the exchange feels personal, but parsimony everywhere else.

To understand tipping in Utah, you have to look beyond our low numbers and percentages. Utah isn’t anti-tipping, but it’s selectively compliant. People tip when they feel it’s clearly earned, and they push back when it feels ambiguous, impersonal, or inflated.

1. Utah has the lowest tipping rate in the country.

   The simple fact is, Utah consistently ranks near or at the bottom of U.S. tipping rankings.

   On average, Americans spend 6.75% of their “eating out” money on tips. In Utah, that average is 4.09%, the lowest in the nation.

   That might seem a bit surprising, considering that Utah is a relatively affluent and service-heavy state with a strong reputation for tourism, dining, and events. Yet it consistently undertips compared to other states.

   You might think that Utahns and our famously large families don’t eat out as much, but the data disproves that. In terms of how much money the average individual spends dining out, Utah doesn’t even rank in the bottom ten. We rank 32nd overall, with an annual per capita average of $3,477 spent on away-from-home food. The question isn’t whether Utahns are spending money eating out; it’s where we’re spending that money and what we’re spending it on.

   Utah’s low tipping average starts to make sense when you consider that most of our dining-out is take-out or is done at food or casual dining establishments that have proliferated in the last decade. In casual settings where little or no tip has been traditionally expected (grocery store eateries, cafeterias, soda shops, coffee shops, drive-throughs, bakeries, etc.), Utahns are comfortable leaving little or no tip at all. Couple that with the fact that Utahns’ typically aren’t ordering alcohol (a traditional driver of tipping) and you see why Utah has the lowest overall tipping rate in the nation.

2. Utahns tip more generously in traditional settings.

   Despite its low overall tipping rate, Utah fares much better in full-service restaurants and other clearly defined service settings. Where the effort of servers is visible and personal (tableside service, full-service catering, weddings, private parties, etc.), Utahns’ tipping habits more closely resemble national norms. In fact, in full-service restaurants Utah patrons tip around 19.5%, slightly higher than the national average.

3. Utahns lead the backlash against tip-flation and tip creep.

   Like the rest of the U.S., Utah has seen a surge in digital tipping. Tablet screens now prompt tips before service is even rendered, in fast-casual dining establishments, retail settings, and other places where tips historically weren’t expected. Utahns overwhelmingly feel the expansion is excessive and push back more than in many states.

4. Utah’s low tipping is coupled with low base wages for service workers.

   An unfortunate consequence of Utah’s tipping culture is that service workers in less formal establishments face a double whammy. Utah is one of the few states that still allow employers to pay service workers the federal tipped minimum wage of $2.13/hour. At the same time, Utah’s frugal tipping culture leads to some of the lowest tipping in the nation, especially in lower-end positions—where it may be needed the most. This can lead to income instability for some of Utah’s service workers.

Bottom line: Utahns tip generously in formal settings where tips are traditional and the service is obvious and personal. At the same time, most of the dining-out that Utahns do is in is in casual settings where little or no tip is traditionally expected, which results in Utah having the country’s lowest overall tipping rate. This can create difficulties for service workers in less formal establishments. Utahns are strongly resisting the mounting cultural pressure for tips to rise in frequency and amount.

Photo credits: Daring Duo

A Guide to Tipping in Utah

Utah’s tipping culture isn’t broken, but it is under strain. National trends have drifted away from traditional norms, creating confusion and frustration for both customers and service workers. There’s no quick fix, but there are practical steps Utahns can take to create clearer expectations and rebuild trust among all the parties involved.

For service workers, the reality in Utah is that tipping can be uneven, especially outside traditional settings. One of the most effective ways to improve outcomes is to make service feel personal and visible. Simple actions—introducing yourself, staying attentive but not intrusive, following through—help customers connect their tip to a real person, not just a transaction. Clarity matters too. When possible, help customers understand what service they’re receiving and how tips are handled. In a culture that’s skeptical of automatic tipping, authenticity and effort carry real weight. Utahns are often generous, but they dislike feeling coerced, so avoid making guests feel pressured. Small gestures like giving customers space and privacy at the payment screen can make a meaningful difference.

For employers, the long-term health of your business depends on a system that feels fair to both employees and customers. Much of the tension around tipping comes from confusion: who receives the tip, why it’s being requested, and whether it replaces fair wages. Reducing that ambiguity is key. Clear policies, transparent communication, and thoughtful use of tipping prompts (not every transaction needs one) can ease friction on both sides. If your business relies on tips, make that model understandable and defensible. If it doesn’t, consider pricing that more accurately reflects labor costs. In Utah especially, transparency builds trust, and trust encourages generosity. Also, keep in mind that Utahns tend to be big-hearted and generous when they see someone in need. If you can make tipping feel personal and meaningful rather than coerced, you may get great results.

For consumers, the simplest approach to tipping is consistency. Be aware that in many industries, tips are still a core part of how workers earn a living wage. In full-service settings—restaurants, bars, beauty salons—standard tipping (around 18–20%, or more for excellent service) remains the norm. In newer or less defined situations—counter service, retail, or pre-service prompts—you’re not obligated to tip out of guilt. Instead, decide in advance what types of service you believe merit a tip and apply that standard consistently. When in doubt, the Golden Rule is a reliable guide: tip the way you would hope to be tipped if the table (or counter) were turned.

Utah Tipping Cheat Sheet

Here’s a quick cheat sheet for tipping expectations in Utah across common service settings. In most cases, these recommendations approximate national etiquette standards.

In high-end dining and private event settings—catering, corporate events, weddings, private chef experiences—Utah behaves much closer to national norms. The cultural modesty that keeps everyday restaurant tips lower doesn’t carry over in the same way when guests understand they’re in a premium service environment.

The Pros and Cons of Tipping

Pros

• Tipping rewards effort and hustle. Unlike a flat hourly wage, tips allow exceptional workers to be compensated exceptionally. A server who is attentive, knowledgeable, personable, and efficient can earn significantly more than a mediocre colleague, creating an incentive based on merit.
• Many workers prefer working for tips. A large portion of tipped workers strongly oppose eliminating tips because their actual earnings far exceed what a “fair” hourly wage would replace. Bartenders and fine dining servers in major cities routinely earn $50,000–$100,000+/year, wages no restaurant would voluntarily offer as a salary.
• Tipping keeps menu prices lower. Restaurants operating on razor-thin margins (typically 3–9%) use the tipping model to manage labor costs flexibly. When restaurants have experimented with no-tip “hospitality included” models, they’ve had to raise menu prices accordingly, and that has driven customers away, even when the new menu prices were equal to the old menu prices plus tips.
• Tipping provides real-time feedback. Whatever the imperfections, a bad tip is immediate, personal, and legible to the worker in a way that a manager’s quarterly review is not. Some workers find this feedback loop — however crude — more motivating and honest than institutional performance evaluation.
• Tipping empowers customers. In a society that values individual economic freedom, there is something to be said for a system where the person receiving the service directly compensates the person providing it, outside of corporate control. Tips give the customer a degree of control that built-in service charge do not.

Cons

• Tipping creates income instability for workers. Tipped employees often deal with unpredictable earnings. A slow night, bad weather, or a shift change can significantly reduce income, making budgeting difficult compared to a steady wage.
• Tipping shifts responsibility from employers to customers. Instead of businesses paying full wages, they can pay lower bases and expect customers to make up the difference with tips. Tipping effectively outsourcing payroll to customers.
• Tipping is subject to bias and discrimination. Research in Behavioral Economics and hospitality shows tips can be influenced by factors unrelated to service quality such as race, gender, age, or appearance. This leads to unequal earnings that may have nothing to do with a worker’s effort or the quality of their service.
• Tipping can lead to harassment. Many service workers report feeling that they have to tolerate inappropriate or abusive behavior from customers to avoid losing potential tips.
• Tipping can create workplace tension and inequity. Front-of-house staff (servers, bartenders) often earn far more in tips than back-of-house workers (cooks, dishwashers), even though both work hard and contribute to customers’ experiences.
• Tipping creates pressure and confusion for customers. With tipping prompts expanding into more settings (counter service, retail, etc.), customers often feel social pressure or uncertainty about when and how much to tip.
• Tipping is not a very effective incentive. While tipping is supposed to reward and encourage good service, it doesn’t always work that way. Some studies show only a weak correlation between tip size and service quality.
• Tipping creates tax complexity and underreporting. Tips can complicate income reporting for workers and enforcement for governments, sometimes leading to underreported income and legal gray areas.
• Tipping continues to expand into new contexts (“tip creep”). Digital payment systems have pushed tipping into places it didn’t traditionally exist, creating resentment and fatigue among customers.

  

  Photo credit: Pepper Nix

  Why Don’t We Eliminate Tipping and Pay Service Workers a Fair Wage?

  It’s a good question, and one we’ve given a lot of thought to here at Culinary Crafts. On the surface, it feels like a clean solution: build labor costs into menu prices, pay everyone well, and remove the guesswork for guests. In practice, though, the reality is more nuanced. Like many things in hospitality, the answer isn’t just about economics; it’s about people, expectations, and the delicate balance that makes great service sustainable.

  There are plenty of good reasons to get rid of tipping altogether, as we explained above, and several American businesses have tried. Most famously, Danny Meyer (founder of Shake Shack and a dozen high-end NYC restaurants) announced in 2015 that he would eliminate tipping at his restaurants and raise menu prices in order to increase the base wages for his entire staff. Initially praised as a bold move to make pay more equitable for back-of-house workers and to make pricing more transparent for guests, the plan largely backfired. Meyer’s restaurant staff left in droves, and profitability at his restaurants dropped. In 2020, during the pandemic, Meyer reversed the no-tips policy, conceding that “It was inhumane to tell our servers that you can’t accept that expression of gratitude.”

  Most U.S. businesses that have tried to eliminate tipping have seen similar results. Joe’s Crab Shack, Bar Agricole (San Francisco), Agern (NYC), Sea Wolf bakery (Seattle), and other businesses have adopted a no-tipping policy and tried to raise menu prices to make up the difference, only to abandon that plan later.

  Why efforts to eliminate tipping in the U.S. have almost always failed

  Although some attempts to eliminate tipping have met temporary success in the U.S., nearly all of them eventually failed. The reasons are fairly clear:

  1. To eliminate tipping, restaurants and other service industry businesses have to raise their prices. These businesses operate on notoriously thin profit margins, so they can’t afford to cancel tipping unless they find another way to compensate their employees for the loss to their paycheck. That almost always means raising prices.
  2. Customers react negatively to higher prices. Even when it’s explained to customers that the new, higher cost is the same as what they would have paid with the lower cost plus a tip, customers resist. It seems that U.S. diners pay way more attention to the price printed on the menu and less attention to what they will actually end up paying in total. Plus, diners feel better about giving a voluntary tip than being required to pay a higher price.
  3. Higher-paid employees don’t want to lose their tips. Eliminating tipping and raising wages overall means that certain employees (dishwashers, cooks, and people in the back) will see a bump in their pay, but other workers will see their income drop. Waiters and bartenders, who are used to being handed tips, rely on tipping for a large portion of their income. Eliminating tipping, or sharing tips with workers in the back, would mean a serious drop in their pay.
  4. Businesses that end tipping can expect to lose their top workers. Since tips are meant to be a reward for excellent service, the workers who receive the most tips tend to be the most experienced and talented. If tips are eliminated, the best employees are the ones who see the biggest drop in their pay. That’s why restaurants that have eliminated tipping and adopted a more equitable pay scale have seen many of their best employees leave and go to other jobs where they can continue making tips.
  5. Customers prefer the personalization of a tip. Tipping, at its best, creates a direct connection between guest and service team—a moment of acknowledgment that says, we see you, and we appreciate you. Removing that exchange can make hospitality feel more transactional, less personal.

  

  Photo credit: Logan Walker

  The Future of Tipping

  If the past five years have taught us anything about tipping, it’s that tips aren’t going away anytime soon, but they are changing. The future of tipping in Utah (and the U.S. broadly) will likely be defined less by a single “solution” and more by a tension between technology, consumer sentiment, and the economics of hospitality.

  1. Expect more tipping prompts, but also more push back.

     Digital payment systems have permanently reshaped how and when we tip. Tablets, kiosks, and mobile apps now make it effortless for businesses to ask for gratuities in places that never did before. But convenience hasn’t translated into clarity or goodwill. A growing share of consumers feel overwhelmed and resentful towards these prompts.

     While tipping opportunities will keep expanding, customers will probably become more selective and deliberate about when and whom they tip.

  2. “Tip fatigue” will reshape behavior.

     Consumers are increasingly frustrated with “tipflation,” the spread of tipping into every corner of the service economy. Some data suggests average tipping rates have already started to dip in certain sectors as resentment and prices rise.

     As customers are forced to become more intentional about their tipping, we may see a narrower, more clearly defined tipping culture emerge, centered on hospitality rather than on transactions.

  3. Digital tipping will increase total tips—but also scrutiny.

     As much as we complain about the number of times we’re approached for a tip and given “suggestions” for the size of the tip, research shows that digital tipping does work on us. Research shows that people tend to tip more when prompted digitally than when paying cash. The effectiveness of digital tipping, combined with the convenience and speed it provides, means that digital tipping isn’t going away anytime soon.

     But there may be some unintended consequences to the new tipping technologies. For one, it may encourage people to think more carefully about when and why they should tip. Beyond the rote exercise of calculating the percentage for the tip, we might see more customers starting to ask questions like “Where does my tip go?” and “Will my tip be distributed fairly among all the people who served me?

     To that end, we may see customers start to demand more transparency from the businesses asking for a tip. In the future, “Where does this tip go?” may be the question people have to ask before the can answer “How much should I tip?”

  4. Some businesses will experiment with service charges and “no-tipping” models.

     If customers become more aware of where their tips are going and start to demand transparency from companies asking for tips, it may signal the beginning of a new direction for American tipping.

     In the past, some businesses that have tried to eliminate tipping and just pay all their employees a fair wage, but they’ve been stymied by the fact that many customers got turned away when they saw menu prices go up; they didn’t care as much about wage fairness or how much their total bill would be. If customers start to become more discerning and better informed about tips, we may see more restaurants and service companies experiment with service charges or no-tipping policies, even though it means they will have to raise prices. This time around, companies might do a better job of communicating the advantages to their customers.

     Of course, companies will still need to deal with the customers’ attitude of “I want to choose to give a tip, not be forced to pay more.” How they get around that obstacle will be interesting to watch. Here are a few strategies they might try:
     • Reframe “We’re making you pay more,” into “You’re choosing a business that pays fairly.” Instead of quietly raising prices or adding a service charge, they can lean into making it part of their brand. “No tipping: Our prices already include full, fair wages for every team member.”
     • Offer a “tip anyway” option. Even if business make it clear that no tip is expected, some customers will still want to tip. Companies can preserve that emotional option of tipping (some customers want to express gratitude and generosity) with an “extra appreciation” button. But they should make it clear that the tip will go to a tip pool, a charity, a quarterly profit-share, or some other use that protects employee fairness.
     • Use radical transparency about pay. Most resistance melts when customers understand the reality. Openly share information like “Our servers earn $X–$Y/hour with benefits” and “Kitchen staff earn the same as front-of-house,” etc. Customers assume (often correctly) that eliminating tips hurts workers. Transparency flips that assumption.
     • Keep one thing customers love: rewarding great service. If you remove tipping, you must replace its incentive signal. Offer customers other ways to show appreciation such as personalized ratings (with real-world benefits for the recognized employee), online reviews (positive reviews are great for the whole company), or feedback that goes straight to management. Customers want their generosity to matter.
     • Avoid the worst offender: ambiguous service charges. Customers hate unclear language, double tipping expectations, and not knowing who gets the money. If companies use a service charge, they should call it what it is. “Our service charge ensures fair payment for every member of our team; no additional tip is expected.”
     • Give customers a choice. Some businesses may want to preserve the tipping option. “We’ve included a 20% hospitality charge to ensure fair wages. If you prefer traditional tipping, just let us know—we’re happy to adjust.” Few customers will opt out, but even those who stick with the service charge will feel better about it, knowing they had an option.
     • Roll it out thoughtfully, not just a top-down flip. Past attempts at eliminating tips have failed largely because of resistance from customers and staff alike. If companies are to do it successfully, they need to recognize that they’re not just changing pricing; they’re retraining a culture.
     • Lean into Utah-specific dynamics. Utah diners tend to value fairness and community, show genuine empathy for people in need, respond well to clear norms, and have a strong dislike for compulsion and for social awkwardness. Utah businesses can work with those characteristics by positioning “no-tipping” as more compassionate, better informed, simpler, and more honest.

     No matter how payment systems evolve or policies shift, tipping will continue as a way Americans exercise their freedom to reward great service and show their appreciation when hospitality feels human, personal, and above expectation.

  

  Frequently Asked Questions about Tipping

  Do I tip before or after tax?

  Traditionally, before tax. Most people now tip on the full total, but either is acceptable. If you can afford it, tipping on the total is the more generous choice, and servers notice the difference.

  What if the service was genuinely bad?

  You can tip less—10% is a recognized signal that something went wrong. Leaving nothing is a more extreme statement and is best reserved for genuinely unacceptable experiences. The more constructive move is to speak with a manager, since servers don’t always control what goes wrong (kitchen delays, software issues, staffing shortages).

  What if there’s already a service charge on the bill?

  Read the bill carefully. Some service charges replace tips; others do not and the charge goes to the house. If unclear, ask. A small additional tip (5–10%) is appropriate if you received exceptional personal service.

  Why do so many places ask for tips now when they never used to?

  Digital point-of-sale systems have made it effortless for any business to add a tip prompt at checkout. It’s often a way to increase worker compensation without raising sticker prices, effectively passing a wage decision from employer to customer. You’re not obligated to tip in situations where tipping wasn’t traditionally expected, though workers will always appreciate it.

  Is it rude not to tip in Utah?

  For traditionally tipped roles—restaurant servers, bartenders, delivery drivers, stylists—yes, it is rude because these workers rely on tips as income. The fact that local averages are lower doesn’t make skipping a tip more acceptable; it makes the workers in those roles earn less than their counterparts in higher-tipping states.

  What if I genuinely can’t afford to tip?

  Etiquette guides suggest choosing lower-cost or counter-service options where tipping isn’t structurally expected. At full-service restaurants, a tip is assumed as part of the cost of the experience. If your budget is tight, a fast-casual or takeout meal is the honest choice. Think of it this way: you wouldn’t go to a restaurant you knew you couldn’t afford, so unless you’re going to a “tips-included” establishment, you should pay the expected price, including the tip.

  How do I handle tipping in a group when some people pay cash?

  Anyone paying cash needs to include their portion of the tip in the cash they leave. Anyone paying by card should tip on their share of the pre-split total, not on the reduced amount that appears on their receipt after cash portions are removed.

  A Note on Tipping Caterers

  You may have noticed that our “cheat sheet” of suggested tips for different service professionals does not include caterers. Catering doesn’t fit neatly into a standard tipping playbook because catering isn’t a standard service. Unlike a restaurant, where the experience is relatively consistent, catering can range widely, from a simple drop-off to a complex, fully orchestrated event. Tips should reflect the level and quality of service provided.

  At the high end—where a company like Culinary Crafts operates—you’re not just paying for food delivery. You’re investing in menu design, sourcing, preparation, transportation, on-site execution, personalized service, and much more. The work that a premium caterer does will largely be invisible to guests—that’s what makes a well-executed event seem effortless—but it needs to be recognized by those paying the bill. In upscale hospitality, the norm is to remember that your tip supports an entire team, not just the person who handed you a drink or a plate.

  Tipping in catering is less about a fixed percentage and more about matching the gratuity to the level of service. For simple deliveries or minimal service, 5–10% may be appropriate. For a staffed, full-service event, 18–22% is common on the food, beverage, and hospitality services, with higher tips (23–30%) reserved for exceptional execution or especially complex events.

  Ask your caterer how they handle tips; gratuity may already be included in the way they invoice. If your caterer has a tip-sharing pool in place, your generosity toward one person becomes generosity toward everyone who made the experience possible.

  To learn more about premium catering in Utah, visit the Culinary Crafts website or check out a few of our catered high-end weddings, social occasions, and corporate events.