The History of Tipping
Where Tipping Began
The practice of tipping likely originated in the taverns and coffeehouses of 17th-century England, where patrons would leave a small coin 'to insure promptitude' (the popular folk etymology of T.I.P., which historians today consider almost certainly invented after the fact). The word 'tip' is more likely just 17th-century English slang for a small gift of money. Tipping then spread to Europe and was carried to America in the late 19th century by wealthy travelers who had seen the practice abroad.
America's Initial Resistance
When tipping first arrived in the United States after the Civil War, it was widely hated and seen as undemocratic — an aristocratic European custom that turned American workers into servants. Six states (Washington, Mississippi, Arkansas, Iowa, South Carolina, and Tennessee) actually passed anti-tipping laws between 1909 and 1915 making it illegal. The Anti-Tipping Society of America had over 100,000 members. All those laws were eventually repealed by the 1920s, and tipping became entrenched in American restaurant culture.
Why the U.S. Tips So Much More
American restaurants are allowed to pay tipped employees a 'sub-minimum wage' — federally as low as $2.13 per hour — on the assumption that tips will make up the difference. That makes tips functionally part of the employee's expected income rather than a bonus, which is why American tipping percentages have steadily risen (15% was standard in the 1980s, 20% became standard in the 2010s, and 18-25% is increasingly common today).
Tipping Around the World
Norms vary enormously. In Japan, tipping is considered rude and can cause confusion or even offense — staff have been known to chase customers down to return the 'forgotten' money. In France and Italy, service is typically included ('service compris') and only a small round-up is added. In Germany and the Netherlands, 5–10% is normal. In Australia and New Zealand, tipping is not expected at all because servers earn a full living wage. In China and South Korea, tipping is unusual outside of high-end international hotels.
The Rise of Digital Tip Prompts
Since around 2018, point-of-sale tablets (Square, Toast, Clover) have started suggesting tip percentages at the checkout for almost every kind of transaction — coffee, retail, even self-service kiosks. Suggested percentages have crept upward, often defaulting to 20–25%. This 'tip creep' has become culturally controversial, with diners feeling pressured to tip in situations where tipping has not historically been expected.
Tipping in the Future
Some U.S. restaurants have experimented with no-tipping models — paying full wages and including service in menu prices — but most have eventually returned to traditional tipping because servers earn more under the old system and customers psychologically prefer lower menu prices. Other models include automatic service charges (common in upscale restaurants and for large parties), profit-sharing programs, and tip pooling. The economics of tipping remain a hotly debated topic in the restaurant industry.