3 places people say they never tip amid ‘tipflation’: ‘It’s out of control’

Some Americans are becoming stingier with their tipping habits. 

As living costs continue to soar, cash-strapped consumers are opting out of gratuities for hair stylists, waitstaff, rideshare drivers and other service workers. The percentage of Americans who always tip their server is steadily declining, for example, down to 65% this year from 77% in 2019, according to a recent Bankrate survey of more than 2,000 adults.

Many also feel added pressure to tip amid the rise of automatic tipping prompts on self-service kiosks and apps, NerdWallet’s consumer budgeting report found. 

As of June, non-restaurant employees in leisure and hospitality jobs — workers who wouldn’t historically collect tips — made an average of $1.25 per hour in tips in June, up 30% from four years ago, according to payroll provider Gusto.

Amid the “tipflation” debate, where are consumers tipping the least, or skipping gratuity altogether? To find out, CNBC Make It asked three New Yorkers which services they never tip on — and what etiquette experts recommend in each scenario.

Saad Kabir, a recruitment coordinator at New York City Public Schools, says he “always” tips at least 20% when he dines out, as he believes servers deserve the added compensation for delivering food and bussing tables. 

But with takeout orders, he’s more inclined to skip the tip. “If I’m going to go and pick up the food myself, I can’t [tip],” the 25-year-old says. 

An etiquette expert’s take: There are several factors you should consider before skimping on gratuities for a takeout order, including how big the order is and how long it took to prepare, says Thomas Farley, an etiquette expert known as Mister Manners.

If it’s fast food or you’re grabbing a pre-packaged item from a shelf, Farley says you don’t need to tip. But in other cases, especially if the order is for more than one person, you should leave at least a 10-15% gratuity. 

Some people might not tip Uber or Lyft Drivers on…