Tipping culture, traditionally prevalent in the United States, involves giving a portion of the payment to service workers to maintain minimum wage levels. This unfamiliar practice often prompts travelers preparing for trips to the U.S. or Europe to question how much to tip. However, tipping is no longer a foreign concept. Recently, tip boxes have become visible in taxis and shops located in busy areas. This article introduces the origins of tipping culture, its variations in different countries, and its reaction in Korea.
Meaning and Origins of Tipping Culture
Tip means additional money given to the person who serves as a token of gratitude. The origin of tipping culture varies among scholars, but a popular theory traces it back to a shop in 18th-century England. People coined the term ‘tip’ from the initial letters of ‘To ensure promptness,’ implying that you should pay more for excellent and quick service.
Introduction of Tipping Culture in the U.S.
Tipping culture fully formed in the United States after the Civil War when the American upper class began to import refined British culture. Wealthy Americans visiting Europe in the mid-1800s brought the tipping culture back to their country to showcase their sophistication and superiority. The culture spread further as formerly enslaved African Americans, former servants, remained in service jobs after the Civil War. Farm owners exploited tipping culture to pay their black slaves low wages.
Anti-Tipping Movement in the U.S.
Due to the above reasons, consistent movements have been against tipping culture. In the early 1900s, some states attempted to end tipping culture, recognizing its racially discriminatory roots. Consequently, six states abolished tipping in 1915. Authorities fined or imprisoned the giver and receiver if they detected tips. However, they repealed all these laws during the Great Depression of 1926 because of a severe economic downturn. There are still ongoing movements against tipping culture in the United States.
Tip Inflation
Recently, in the U.S., a video of a pizza delivery man complaining about receiving a small tip went viral. Even after receiving a tip that amounted to 22% of the total payment, he expressed dissatisfaction. Some stores automatically charge a 25% tip for groups of six or more. Amid such situations, you can easily find videos online that mock the tipping culture, and Americans express their fatigue over the culture in reactions. The situation has worsened into ‘tip inflation’ following the COVID-19 pandemic.
Intrusion of Tipping Culture into Payment Terminals
The voluntary nature of the tipping culture has been distorted with the spread of payment terminals. After taking a taxi, customers must select a minimum 15% tip banner. Even in takeaway orders from cafes, drive-thrus, or online purchases, terminals prompt for tips, causing dissatisfaction among young Americans. While advantages include saving additional labor costs and convenience for employees and consumers, the disadvantages are becoming more prominent.
How Much Should You Tip in the U.S.?
Before the COVID-19 pandemic, it was common to voluntarily pay a minimum of 15% of the food cost as a tip, but the situation has changed. It is customary to tip 18-22% at restaurants and, in some cases, more than 25%. If the service at a restaurant is unsatisfactory, customers may tip 10%, which could lead to staff disputes. At fast-food chains like McDonald’s or KFC, where customers have to pick up their food instead of being served by staff, tipping is unnecessary.
Tipping Culture in Europe
In Europe, the tipping costs are relatively lower and more flexible compared to the U.S. Sometimes, restaurants include the tip in the bill, and sometimes they don’t. Customers typically add tips, around 10% of the total. Generally, customers give a tip of 5-15%. In Germany and Switzerland, people consider it polite to tip, so there’s no change left. The tipping policy for hotels varies across European countries, so you should research before you go.
Tipping Culture in Asia
In Japan and China, people generally don’t accept tips except under specific circumstances. In Hong Kong and Singapore, restaurants often add a service charge to the total, so you should always check the bill. Larger restaurants in Hong Kong commonly include a 10% service charge in the bill. Most Southeast Asian countries have a well-established tipping culture. It’s common to pool tips for tour guides or bus drivers on the last day of the trip or to leave a $1 tip in the hotel room each day.
Tipping Culture in Korea?
KakaoT (Korean transportation service app)
Kakao T recently introduced a payment option that allows customers to tip taxi drivers. After a ride, customers can rate the driver’s service out of five stars. If a five-star rating is given, customers can pay 1,000 to 2,000 won (about $1-2) as a token of appreciation. However, this has been met with negative responses, with seven out of ten opposing the new feature. Many consumers feel burdened significantly since taxi fares have increased this year.
Tip Box at a Famous Bakery?!
Recently, a picture of a sign from a restaurant asking for a tip of around 5,000 won per table if the service was satisfactory sparked controversy in an online community. In stores like Itaewon and Hongdae, tip boxes, usually only seen in the U.S., are often placed in front of the cash register. A famous bakery that caused a frenzy with its ‘bread open run’ has been criticized for placing a tip box in front of the cash register. With tipping culture being chosen as the ‘foreign culture that should not be introduced,’ it continues to receive negative reactions in Korea.
By. Oh Hye-in (press@daily.co.kr)
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