Recently, a noteworthy trend has emerged among coffee shops in Brooklyn: they are adopting a new pricing policy that eliminates separate tipping. Instead, tips are now built directly into the price of coffee, including takeout orders. This shift has led to significant price increases, with a latte now reaching as high as $7.

In recent discussions surrounding tipping, two main points of contention have surfaced. First, many customers are expressing confusion when faced with iPad checkouts that present fixed tipping percentages of 16%, 18%, 20%, or even 25%, without offering a lower or alternate option. This can be especially perplexing for those who are less acquainted with tipping customs. They wonder: if the service falls short of expectations, should they still feel obligated to tip at least the minimum rate?

The second issue arises from services that historically did not require tipping, such as ordering food and drinks at takeout windows, which are now beginning to prompt customers for tips at checkout. Customers who opt not to tip may encounter irritation from staff, while those who do often feel like they are tipping out of obligation rather than genuine appreciation.

While tipping is generally accepted when enjoying coffee in a café setting, many customers feel less inclined to leave a tip for takeout coffee. In light of this behavior, some business owners are embedding the cost of tips into the overall price of coffee, effectively making it mandatory for customers. While this may streamline the process for those who are willing to tip, it risks alienating customers who prefer not to do so, potentially driving them away from these establishments.

Ultimately, trust is crucial in maintaining a successful business. Losing customers due to tipping disputes can result in losses that outweigh the benefits of tips. When considering tipping practices, dining in a restaurant typically involves a percentage-based expectation, whereas takeout should, ideally, remain a voluntary choice for customers.