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Wednesday 8 November 2023

The Daily Money: How businesses get you to tip more

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Businesses have been asking for more tips to offset high inflation. Plus, the malls you won't find open on Thanksgiving.

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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Wed Nov 8 2023

 

Bailey Schulz Money Reporter

@bailey_schulz

Happy Wednesday, Daily Money readers. It's Bailey Schulz here to bring you the day's top headlines. 

You've probably noticed an uptick in tipping requests. The shift in tipping culture comes after more than two years of high inflation, as businesses look for ways to pass on expenses. If workers earn bigger tips, then businesses may not have to pay higher wages. 

But experts warn that tipping prompts from stores could lead to overtipping. 

"Historically, tips were designed for services well performed," said Rob Burnette, chief executive and investment adviser at financial planning firm Outlook Financial Center in Troy, Ohio. "But it's morphed into an expectation by servers not just to tip, but tip generously or they'll call you out." 

Syndication Online Athens

A staff member stuff tips in the tip jar at the Munch Hut in downtown Athens, Ga., on Wednesday, April 28, 2021.

Joshua L. Jones via Imagn Content Services, LLC

Shopping on Thanksgiving? Not at these malls.

Simon Properties, one of the largest mall operators in the United States, has decided to close most of its properties on Thanksgiving Day for the fourth consecutive year.

The decision continues a trend that has seen not only malls but also major retailers including Best Buy, J.C. Penney, Kohl's, and Walmart.

Simon, the owner of popular malls including Desert Hills Premium Outlets, Mall of Georgia, The Shops At Crystals, said all of the stores will reopen on Black Friday.

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About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

"Before COVID, only a small percentage of customers gave tips when picking up takeout," says restaurant consultant Izzy Kharasch.

Tip requests are everywhere and growing bigger. Businesses, trying to pass on costs, have found ways to inflate them. Here's how.

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