Gen Z Tipping Gap: Why Young Americans Leave Smaller Tips
Across the United States, tipping culture is shifting. In 2025, younger Americans, particularly those in Gen Z, are tipping less frequently and less generously than older generations.
Recent surveys from Bankrate and WalletHub show a clear pattern: Gen Z is now the least likely generation to tip at restaurants, bars, and cafes.
Gen Z Tipping Habits in 2025
According to Bankrate’s latest data, only about one-third of Gen Z diners say they always tip at sit-down restaurants, compared to more than half of baby boomers.
When it comes to bars and coffee shops, the numbers drop even further.
Several factors appear to be driving the change. Rising costs of living have made social outings more expensive, and digital checkout systems now prompt customers to tip for nearly every transaction.
For many younger adults, this has created what economists call “tip fatigue” – a sense of exhaustion over constant requests for gratuity.
Restaurant Tipping Trends Are Changing
Industry experts note that restaurant tipping trends are evolving in response. Many establishments have added automatic service charges to offset inconsistent tipping, while others are testing no-tip models that include gratuity in menu prices.
Bartenders and servers also report that base tipping percentages have declined over the past five years. What was once a standard 20% is now closer to 15% in many cities. Even small shifts can make a difference for folks who depend on tips for their income.
Bartenders and Tipping Culture
To no surprise, tipping culture is a recurring topic for bartenders all across he country. Some bartenders describe Gen Z guests as courteous and engaged, but less likely to leave large tips.
Others point out that digital payments often remove the personal connection that once encouraged generosity.
Those in hospitality say the best way to encourage tipping is still through genuine service. When interactions feel thoughtful and human, guests are more likely to express appreciation financially, regardless of the age group.
The Rise of Digital Tip Fatigue
The rise of digital tip prompts has made tipping unavoidable in many situations. Tablets, QR codes, and self-checkout systems routinely ask for tips even in quick-service environments, a trend that has led to widespread digital tip fatigue.
Gen Z, the first generation to grow up in a mostly cashless economy, reports feeling particularly overwhelmed.
Most of us prefer the option to tip selectively, rather than being prompted automatically. It’s not about refusing to tip, but about regaining control over when and how to do it.
The Future of Service Industry Tips
For the service industry, the changing dynamics around tipping are both a challenge and an opportunity.
Some restaurants are increasing hourly wages to reduce the reliance on tips, while others are exploring hybrid systems that include optional service fees.
Despite the shifting expectations, tipping remains a cornerstone of American dining culture. Here’s hoping the coming years bring a more balanced approach, one that blends fair compensation with the appreciation that makes dining out so much fun.
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