Restaurant consultant and Bar Patrol founder Dave Allred says the hospitality industry has pushed tipping so far beyond its traditional role that some operators are now turning what should be a voluntary reward for good service into a source of resentment that can drive customers away.
In a recent video, Allred pointed to signs, checkout screens and mandatory gratuity policies that he believes reflect a larger shift in restaurants, coffee shops, retail and even self-service businesses, where customers are increasingly being asked to tip before meaningful service has been provided.
His argument is not that tipping should disappear. After three decades in the industry and years of relying on tips himself, Allred said the problem is what he calls “tipflation,” where owners increasingly use guilt, pressure and automatic charges instead of better pricing, wages and service.
A Sign That Says Customers Should Pay More
Allred opened with an image of a sign that read, in part, “We don’t pay our staff to smile at you,” “Service charges are not tips,” and “Tip well or get out.”
The sign also laid out an example bill that expected a 25% tip and included additional labor-related charges, before telling customers not to be cheap.
Allred said he could not verify whether every detail of the sign was authentic or whether it had been altered for online outrage, but argued that the broader attitude behind it is now common enough that the exact origin matters less than it once would have.
For him, the most damaging part is the way businesses frame the customer as morally responsible for keeping workers properly compensated.
He said that responsibility belongs primarily to the operator, who should price the menu in a way that supports the business and pay employees accordingly, rather than confronting guests with a message that effectively says they are failing the staff if they do not tip enough.
That is a fair criticism because hospitality has traditionally been built around making the customer feel welcome. Starting the interaction with a warning about what percentage they are expected to leave can undermine that before the meal even begins.
Allred Says Tipping Is Supposed To Be Voluntary
Allred stressed that he is not anti-tip and said he has personally left very large gratuities when the service justified it.
What bothers him is the expectation that 25% or even 35% should now be treated as normal regardless of the quality or type of service.
He said the traditional framework was closer to 15% for average service, 20% for very good service and higher amounts for exceptional experiences or personal generosity.
By contrast, he sees current tipping prompts as increasingly detached from actual service.
Allred pointed to self-checkout kiosks, hotel breakfast buffets and fast-food counters that ask customers to tip even when they are doing much of the work themselves.
He said he still tips on some coffee and takeout orders because he wants to, but that the feeling changes completely when the business makes the gratuity feel compulsory.
“When you demand that I do it, I’m out,” he said.
Mandatory Gratuities Can Create Customer Resentment
Allred described a recent experience at Rubicon Pizza in Tahoe, where he said he ordered about $100 worth of food for pickup and was told a 15% mandatory gratuity would be added.
He accepted that charge, but said he was then presented with another tip screen at checkout showing options such as 20%, 25% and 30%.
That left him feeling as though the business expected him to pay roughly 40% extra if he selected one of the suggested tips on top of the mandatory gratuity.
For a pickup order, where the primary service involved preparing the food and handing over boxes, he thought that was unreasonable.
Allred said the experience made him decide not to return.
That reaction gets at the business risk behind his argument. Even if a restaurant successfully collects more money from one transaction, it may lose far more over time if customers leave feeling manipulated and stop coming back.
He Blames Owners For Pricing And Staffing Problems
Allred said restaurant owners who rely on guilt-based signs or aggressive tipping prompts are treating a deeper business problem as though it belongs to the customer.
“If your business model depends on guilting the guests at the door, you don’t have a tipping problem,” he said. “You have a pricing and staffing problem.”
His argument is that restaurants should set transparent prices that reflect what food and labor really cost, then pay employees a fair base wage so tips become a bonus rather than the mechanism holding the entire payroll structure together.
He also argued that owners should invest more in training employees to provide the kind of service that naturally makes customers want to leave more money.
That approach may be harder because it forces operators to confront their costs directly, but it is also more honest. A higher menu price is at least clear to the customer before ordering, while layers of service fees, mandatory gratuities and extra tip prompts can make the final bill feel deceptive.
The Federal Tipped Wage Is Part Of The Debate
Allred also discussed the federal tipped minimum wage of $2.13 an hour and the tip credit system, under which employers can pay that lower direct wage as long as tips bring workers up to the required minimum.
He argued that some restaurant owners rely too heavily on customers to close that wage gap rather than building labor costs more directly into the business model.
From his perspective, signs shaming customers into tipping 25% are not really about protecting workers so much as preserving a structure that keeps the employer’s direct wage costs low.
That is a strong interpretation, and the economics can vary widely by state because local wage laws differ, but Allred’s larger point is about where responsibility should sit.
He believes owners should not make guests feel personally responsible for whether servers can afford their bills.
Tipflation Can Hurt Restaurants More Than It Helps
Allred warned that restaurants using aggressive tipping policies can trigger an online backlash that spreads far beyond one unhappy customer.
Guests post photos of signs, leave negative reviews and share stories about mandatory gratuities or tip screens that feel excessive.
Once that resentment builds, Allred said ratings can drop, traffic can follow and the restaurant can end up hurting itself while trying to squeeze more money from each transaction.
He described that as an “avalanche effect.”
The irony is that the hospitality industry depends heavily on repeat customers, goodwill and word of mouth, so a policy designed to collect a few extra dollars can work against the long-term relationship restaurants need most.
Allred said the businesses doing better are taking the opposite approach with transparent pricing, fair wages, strong service and no guilt tactics at the point of sale.
Great Tips Should Be Earned In The Room
Allred repeatedly returned to the idea that a good tip should follow a good experience, not be demanded before the customer has had one.
He said that during his own years working for tips, he understood that generosity had to be earned through service.
That is why he sees a major difference between a server receiving an excellent tip because a guest had a memorable experience and a business presenting a 30% suggestion on a screen after little or no personal service.
The hospitality industry already faces high food costs, labor pressure and customers who are increasingly sensitive to price, which makes adding another source of irritation particularly risky.
Allred’s warning is that restaurants cannot solve those problems by making customers feel guilty for not paying more than the listed price.
If owners want higher revenue and better-paid staff, he believes the answer is to build a healthier business model around those goals rather than turning every checkout screen into a test of the customer’s generosity.
Growing up in the Pacific Northwest, John developed a love for the great outdoors early on. With years of experience as a wilderness guide, he’s navigated rugged terrains and unpredictable weather patterns. John is also an avid hunter and fisherman who believes in sustainable living. His focus on practical survival skills, from building shelters to purifying water, reflects his passion for preparedness. When he’s not out in the wild, you can find him sharing his knowledge through writing, hoping to inspire others to embrace self-reliance.
