How did 25%, even 30% gratuity become the norm?

NASHVILLE, Tenn. (WKRN) — Everyone has become very familiar with inflation the past few years. But what about tipflation? The typical 15% to 20% gratuity seems gone away with many restaurants now asking for 25% or even 30%. 

Americans are asking, how did we get here? 

Jimmy Elkins is a familiar face at Country Cafe on Murfreesboro Pike. In the initial days of the pandemic, he was blown away how many more customers started tipping. 

"It was a lot more. People were willing to give 25% plus, ya know," said Elkins. 

Kenny Jordan teaches hospitality and tourism management at Belmont University. 

"So, is tipflation is real?" News 2 asked. 

"Absolutely," said Jordan. 

He said the pandemic is one big driver for tipping taking off. 

"One of the things we saw during the pandemic was more and more people wanted to increase the amount they were tipping because they wanted to take care of workers at that time," said Jordan. 

But, it's not only the pandemic. Technology is also an influence. P.O.S., or Point of Sale systems, can put 25%, even 30% gratuity in front of the customer, leading to higher tips. 

"Technology is a big part of it as well," said Jordan. "Now, if you go out to eat and you have a great experience, it's expected 20% to 25%." 

And as operation and food costs have gone up as high as 25% for some restaurants, Jordan said owners are relying on tips to make up the difference for their workers. 

"More and more businesses are using tips as a way to augment the salaries that they are able to pay their employees," said Jordan. 

But, there are signs the consumer is pushing back. WalletHub found that more than 1 in 4 Americans tip less when they are handed a tip suggestion screen. 

Elkin is seeing that frustration first-hand. 

"I want to say it's making it worse because we have a lower option, which more than likely the people either hit that or nothing," said Elkins. 

Like any custom, tipping has evolved the years. At one time in England, customers tipped at pubs before the meal in order to ensure prompt service. 

"As travel became more ubiquitous, and more accessible to wealthier individuals, then we started seeing some of these customs here in the United States," said Jordan. 

For decades, 10% was a standard tip. Over time, that was upped to 15% or 20%. Now technology, a tight job market and the pandemic pushed that tip closer to 30%. But as the economy slows, and prices remain high, restaurants like Country Cafe are seeing their customers pull back on generous tips.  

"Recently, it's gone way down. I would say 10%, if any," said Elkins. "It definitely takes a toll on the servers that make the minimum server wage, and they rely on that tip to make up the difference in their pay." 

Pew Research shows consumers are most likely to tip at a sit-down restaurant and least likely to tip at a fast-food chain.