How tipping culture in the U.S. may feel different for World Cup visitors

Game Plan is a Q&A series highlighting how KU School of Business research connects to the challenges and opportunities of hosting a global event. As the Kansas City and Lawrence areas welcome World Cup visitors, these conversations explore topics that affect travel, business operations, consumer behavior, and daily life across the region. 

In this edition, Rob Waiser, assistant professor of marketing, shares insights from his research on tipping culture and customer experience. His work examines how evolving tipping practices are changing how consumers perceive fairness and value, offering perspective on how international visitors and local businesses may navigate tipping during the World Cup. 

The U.S. seems to have a much stronger tipping culture than many other countries. For visitors coming to the World Cup, what are the biggest differences they’re likely to notice right away? 

I would expect them to notice a couple of things. First, they may be asked or prompted to tip in places that they don’t expect. Depending on where they come from, they may not be used to tipping even in settings that Americans take for granted – restaurants, taxis, etc. But even if they are (or they’re familiar with the idea), they’ll probably be surprised to encounter tip requests at self-service checkouts, fast food restaurants, etc. 

Second, they may be surprised at the percentages that are suggested when a card reader prompts them for a tip. Tips of 20 or 25% would be considered shockingly high in most other countries, but those are common suggestions here. 

Your research suggests tipping has changed a lot in recent years. In simple terms, how would you describe what’s happening with tipping culture in the U.S. right now? 

There are two phenomena that a lot of people have noticed, and they’re closely related to the two things that I expect foreign visitors to notice. 

The first is what’s known as “tip creep” — the number and types of places where people are being asked to tip are expanding. 

The second is “tipflation” — the expected percentage that people are expected to tip has increased over time. Not too long ago, 15% was considered a "standard" restaurant tip. Now the "suggested" values often start at 18%, and 20% or more is the new normal for many people. 

The combination of those two things, along with broader economic factors (like inflation) are causing some consumers to push back and question when, where, and how much they should really be tipping. 

Why do large events like the World Cup tend to expose the awkward or uncomfortable sides of tipping culture more than everyday situations do? 

I think anytime you expect large numbers of visitors from other countries, it makes you more conscious of differences in norms and cultures. Tipping is so well established here that most Americans take it for granted and consider it an unavoidable part of certain experiences. But that’s not the case in many other countries. 

Much like traveling, hosting visitors can shine a spotlight on those differences and perhaps cause people to question why we do things a certain way, or how our system could be improved.  

What role has technology, like card readers and tip screens, which are commonly used at stadiums during major sporting events, played in changing how people experience tipping? 

Many people struggle with how much to tip, so the "suggested" tips on card readers and tip screens can be helpful. However, as those suggested values slowly get higher, larger tips become normalized and then expected, helping to drive tipflation. In one striking example, when New York City taxis introduced backseat card readers with preset options in the 2000s, average credit card tips jumped to about 22%, compared to roughly 10% for cash tips. 

Technology also helps to enable tip creep. For a business to introduce tipping where it’s not already established, it needs some way to communicate to customers that tips are welcome or expected. Without technology, that could be pretty awkward, but card readers and tip screens make it easy – you simply add a tip prompt as part of the transaction.  

In early May, the Missouri Restaurant Association recommended that its Kansas City members implement automatic gratuity during the World Cup. Do you think this approach is effective at replacing what could be a potential “lost” tip for serving staff?  

The whole restaurant “system” in the US — menu prices, servers’ wages, laws that allow businesses to pay tipped workers less than the standard minimum wage, etc. — relies on customers tipping as expected. With a large influx of customers who may be unfamiliar with local tipping expectations, automatic gratuities may be the simplest way to ensure that the delicate balance of that system isn’t disrupted.  

An alternative to automatic gratuities would be for restaurant owners to take it upon themselves to ensure that workers’ earnings aren’t negatively affected (e.g., by temporarily raising wages to make up for lower tips). Of course, that would then require them to raise prices and/or absorb a hit to their margins, neither of which are desirable. 

Whatever they decide, it’s critical that each restaurant clearly communicates its policy to customers.

How does your and your co-authors' backgrounds influence your understanding of tipping culture as it applies to a sporting event like the World Cup that will draw an international audience? 

I worked with three co-authors, and we’re a very international team. Each of us comes from a different country and most of us have lived in three or more countries over the course of our careers and been lucky enough to travel to many more. So, we’ve all experienced a variety of tipping cultures and the adjustment to local norms and expectations when arriving in a new country.   

From a consumer perspective, what makes tipping feel fair and rewarding versus confusing or uncomfortable? 

There are a few factors that tend to make tipping feel appropriate:

The service that you’re tipping for should be discretionary (for the worker) and distinct from the product or service that you’re already paying for. For example, suppose someone attending a World Cup game buys a bottle of water from a concession stand. That transaction requires someone to hand them the bottle and take their payment. If that’s the extent of an employee’s job, then there isn’t any distinct, discretionary service involved, so most people wouldn’t feel great if they were asked to give a tip. 

The discretionary service should be visible to the customer. In other words, customers should be able to observe what they’re tipping for. If a World Cup visitor orders a food delivery to their hotel room through a delivery app, they’ll probably be asked to enter a tip for the driver before the food is delivered, which may feel confusing as they haven’t yet observed whether the delivery was quick, intact, etc. 

Lastly, tipping works best when customers feel free to tip in proportion to the quality of the service they experience. In theory, tipping is always optional, and the amount is up to the customer. For many people, however, it feels like an obligation and is driven by guilt and/or social pressure more than a desire to reward excellent service. I suspect that’s why some Kansas City restaurant owners are nervous about how customers will respond to the idea of automatic gratuities.

If there’s one thing businesses and customers alike should keep in mind about tipping as the region welcomes World Cup visitors, what would it be? 

I think we should all try to keep an open mind and appreciate our cultural differences (tipping culture included). Our own approach is not necessarily better or worse than anyone else’s — it’s just what we’re used to. If visitors are unsure what’s appropriate, I hope they feel comfortable asking locals for guidance. And if some visitors don’t tip the way a local would, I hope those on the receiving end understand and don’t take offense.