Eighteen percent used to be a generous tip. Now it's often the low end of the suggested range, right before the screen turns around and the whole line watches you decide. In this episode, Greg and Spiro tackle one of the most divisive topics in the industry: tipping culture, and whether it's helping restaurants or quietly driving customers away.

The numbers back up what everyone already feels. 72% of Americans say tipping is expected in more places now than it was five years ago, according to a 2025 Bankrate study, even as the share who always tip at sit-down restaurants fell from 77% in 2019 to 65% in 2024. Ninety percent of consumers say tipping culture has gotten out of hand. Two thirds feel real anxiety when an employee watches them pick a number and turn the screen around, what researchers are calling "digital guilt," while default suggested tips on kiosks now often start at 18 to 25%, "tipflation." And the group actually profiting most as tip totals climb isn't the restaurant or the employee. It's the credit card processing companies. Greg and Spiro get into all of it, plus the distinction most restaurants get backwards: you're not tipping for service, you're tipping for hospitality.

Greg shares a simple rule from his own restaurants: say a guest's name three times during their visit, and by the third time, you're not just serving them anymore, you're friends. That's the line between a transaction and a relationship, and it's the same thing that separates a real tip from a fee tacked onto the register. The difference isn't the percentage on the screen. It's whether the hospitality was ever there to earn it.

In this episode:

• Why 72% of Americans say tipping is expected in more places than five years ago, even as tipping rates at sit-down restaurants keep falling
• "Digital guilt" and "tipflation": what's really happening when that screen turns around and the suggested tip starts at 18 to 25%
• Why credit card processing companies, not restaurants or employees, come out ahead as tip totals rise
• The real distinction: you're tipping for hospitality, not service, and why so many restaurants get that backwards
• A simple, free rule for turning a transaction into a relationship
• What to actually consider if you're deciding whether to keep the tip prompt on your kiosk
• The takeaway: when does a tip become just a fee, and what makes it a tip again

Whether you think tipping culture has gone too far or it's just part of doing business, this episode makes the case that the real question isn't the percentage on the screen. It's whether your team earned it.

Agree? Disagree? Greg and Spiro want to hear it in the comments.

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📈 Ready to build a team that brings the kind of hospitality that actually earns a tip? Learn about Greg's Leadership Circle: gphospitalitypartners.com/leadership-circle
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