When Tipping Gets Awkward
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What is the main topic discussed in this episode?
Here's your Money Briefing for Wednesday, June 14th. I'm J.R. Whelan for The Wall Street Journal. Most people don't think twice about tipping the person who cuts their hair or the Uber driver who gives them a lift. But those payment screens at coffee shops and convenience stores can make the decision of whether and how much to tip a little tricky.
Picture this. So you are a barista or you're a cashier and your customer goes to pay. Maybe they grab something like a little snack, a cookie, or even just a cup of black coffee.
When did tip screens at checkout counters become widespread?
There's that awkward moment when the tip screen appears for both parties.
Our personal finance reporter Oyen Adedoyen will give us a peek behind the counter to see what service workers really think about those tip screens. After the break.
Should you leave a tip for a cup of coffee or a pack of gum? Shoppers faced with tipping options on small screens at the checkout counter are choosing not to tip, and it's creating some awkward situations. Wall Street Journal personal finance reporter Oyen Adedoyin spoke to baristas and shoppers about this. So, Oyen, most of us leave a tip with the waitstaff at a restaurant or the Uber driver, but when did leaving a tip with the person behind the cash register at a store become common or at least an option?
It's all about these tip screens. They are these iPad-like devices at the checkout counter that take a card payment and they also take tips now. This is something that became really popularized during the pandemic when cash was being used less and cards were being used more. And so tap-to-pay was a lot more popular at these checkout screens with companies like Block, Toast, and Clover.
Usually the cashier will spin it around for the shopper.
Yeah. And the interesting thing is some of these screens have different technology.
How do tip-screen designs (facing customer vs. spinning) change tipping behavior?
So some of them spin around. Others are facing the customer the whole time. And that's something that baristas told me can impact whether or not they get a tip too.
So why does this become awkward? If it's an option for the shopper, what's the issue?
Well, picture this. So you are a barista or you're a cashier and your customer goes to pay. Maybe they grab something like a little snack, a cookie, or even just a cup of black coffee. There's that awkward moment when the tip screen appears for both parties. On the barista side of things, they feel like they don't want to guilt the customer into tipping if it's just for a small thing.
Why do tip prompts create awkward moments for baristas and shoppers?
They can see the tip options also on their screen? Yes.
They can definitely see it. And so sometimes they'll, you know, avoid eye contact with the customer. They'll maybe even skip it for the customer to avoid an awkward conversation. In many instances, they told me that they have to explain to the customer how not to tip them.
What do you mean explain not to tip them?
Some of these iPad screens are formatted in a way that the option to not leave a tip is hard to find. So in these instances, baristas have to then lean over and show the customer, OK, just hit the customize button and then hit zero and you're all good.
So what are some situations at the counter where a shopper is unlikely to leave a tip?
Baristas and these service workers told me that for things like a black cup of coffee or a muffin or something that's already pre-made, they don't usually expect a tip. But for things that are a little bit more complicated to make, like a matcha latte, for example, which has gotten a lot more popular in recent years, they actually have to hand whisk those things and measure out portions. And they feel a little bit disappointed if they don't get a tip when they have to actually make something.
Right.
We're also seeing these screens at convenience stores and places where you're likely to just pick up a pack of gum or a soda. And it's really frustrating people and agitating them because these are things that already don't cost a lot. So tacking on an extra dollar or more tip just feels ridiculous for customers.
What's it like on the other side of the screen?
Which small purchases are shoppers least likely to tip for?
Now, you mentioned that the service personnel, they see the tip amount and they see the percentage choices that people have.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:02–0:35
2
When did tip screens at checkout counters become widespread?
0:35–2:05
3
How do tip-screen designs (facing customer vs. spinning) change tipping behavior?
2:05–2:41
4
Why do tip prompts create awkward moments for baristas and shoppers?
2:41–4:11
5
Which small purchases are shoppers least likely to tip for?
4:11–5:03
6
How do workers react or try to diffuse awkward tipping situations?
5:03–6:55
7
How do tips affect worker pay and employer wage practices?
6:55–8:25
8
What can consumers do to ensure their tip reaches the intended worker?
8:25–8:45
Speakers
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