NASHVILLE, Tenn. (WKRN) - Before taking that first caffeinated sip, customers at a coffee shops across Nashville must first make a decision in front of the people who will be directly impacted — how much should they tip?
"We want to assume that your experience when you walk in here is exceptional. If it's not, you have the ability on that screen to make a decision around that, " said Ugly Mugs Coffee co-owner Nathan Weinberg.
Weinberg says in recent years people have changed how they tip and what goes into making that decision.
During the pandemic, he saw customers going out of their way to tip extra and support the food and hospitality industry.
However, the in the past year, Weinberg says tipping percentages have gone down.
"It's more important than ever that every single person who works in our coffee shop, and every coffee shop, be a consummate customer service professional on the front end, because the experience that you get at the cash register should be mirrored in the experience in the beverage you have at the end," Weinberg explained.
Meanwhile, some customers of are tired of tipping all together. According to a 2023 Bankrate survey, 66% of American adults have a negative view of tipping.
The survey also found 30% believe tipping has gotten out of control, and 15% say they are confused when they need to tip.
"I think the backlash has a lot to do with inflation, and people feeling like money is tight. But also feeling like a lot of tip creep has gone on," said Bankrate senior industry analyst Ted Rossman.
Rossman says that creep has seeped into unexpected industries. In Nashville, there's a company that owns a parking lot asking users if they want to add a tip to their parking fee despite no human interaction being involved in the transaction.
"I think there's also a desire from businesses to push more of the cost burden onto the customer, and perhaps to do so in a way that is not quite as obvious," explained Rossman. "Certainly not as obvious as raising prices."
However, despite customer frustration, Rossman says it works and Starbucks is a good example.
"They say that about half of their customers are tipping, which I think is very emblematic of this broader shift. I'm sure nowhere near that many we're dropping bills or coins into the old fashion tip jar," he said.
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At Ugly Mugs, Weinberg said he will go in and adjust what customers see on the tipping screen to reflect to what customers are willing to give and what workers are saying about how customers are finding the experience.
He said depending on the order, some people may see a screen prompting them to tip $1 to $3, or they may see a couple percentages.
When asked how he would respond to people who say they shouldn't need to constantly tip and instead business owners should pay more, Weinberg explained his approach.
"We think that we compensate people really fairly and we hope that our customers will also recognize the hard work that they put in and recognize in themselves. They don't want to spend $10 on a latte, and so this is how we get there," said Weinberg.
The Ugly Mugs co-owner said even if it seems like a barista isn't doing anything more than handing customers a drink, the tip acknowledges and helps support all the people it took to get that cup into customer's hands.
from WKRN News 2 https://ift.tt/VjgEncs
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