Inflation is raising financial concerns among consumers and the frustration only builds when businesses launch new tipping features at self-checkout machines. The store owners are trying to squeeze extra money out of peoples’ already leaking pockets.
Public spots, such as airports, bakeries, coffee shops and sports stadiums, have set up the self-serve tipping option. Customers are prompted by the machine to leave tips even though they haven’t been served by any employees. The machine’s new feature is an added bonus in the company’s earnings without any reflection on the quality of service.
The machine is playing on customers’ emotions since they report feeling obligated to leave a tip without knowing where or to who the tip is going. While the customers remain clueless about the end recipient of the tips, businesses are happy to adopt the extra pay for workers without bumping the salary.
William Michael Lynn, a consumer behavior and tip culture professor at Cornell University’s Nolan School of Hotel Administration, said “that businesses are taking advantage of an opportunity,” and “who wouldn’t want to get extra money at very little cost if you could?”
At the beginning of 2023, consumers were irritated random companies were requesting up to 30 percent in tips. People are feeling manipulated into leaving a tip at fast-food restaurants with drive-through service and coffee shops, like Starbucks.
“I feel like if there’s an automatic question to ask for tipping, there should be fine print stating where these tips go,” day trader Shaun MacDonald said.
“It doesn’t have to be huge, but it should be in writing on the screen saying these tips help out employees or these tips go to all employees, which includes management. It should be specified.”
Source: https://www.foxbusiness.com/retail/self-checkout-machines-ask-tips-latest-squeeze-customers