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Across the U.S., there’s a silent frustration brewing about an age-old practice that many say is getting out of hand: tipping.

Some fed-up consumers are posting rants on social media complaining about tip requests at drive-thrus, while others say they’re tired of being asked to leave a gratuity for a muffin or a simple cup of coffee at their neighborhood bakery. What’s next, they wonder — are we going to be tipping our doctors and dentists, too?

As more businesses adopt digital payment methods, customers are automatically being prompted to leave a gratuity — many times as high as 30% — at places they normally wouldn’t. And some say it has become more frustrating as the price of items has skyrocketed due to inflation, which eased to 6.5% in December but still remains painfully high.

“Suddenly, these screens are at every establishment we encounter. They’re popping up online as well for online orders. And I fear that there is no end,” said etiquette expert Thomas Farley, who considers the whole thing somewhat of “an invasion.”

Unlike tip jars that shoppers can easily ignore if they don’t have spare change, experts say the digital requests can produce social pressure and are more difficult to bypass. And your generosity, or lack thereof, can be laid bare for anyone close enough to glance at the screen — including the workers themselves.

Dylan Schenker is one of them. The 38-year-old earns about $400 a month in tips, which provides a helpful supplement to his $15 hourly wage as a barista at Philadelphia café located inside a restaurant. Most of those tips come from consumers who order coffee drinks or interact with the café for other things, such as carryout orders. The gratuity helps cover his monthly rent and eases some of his burdens while he attends graduate school and juggles his job.

Schenker says it’s hard to sympathize with consumers who are able to afford pricey coffee drinks but complain about tipping. And he often feels demoralized when people don’t leave behind anything extra — especially if they’re regulars.

“Tipping is about making sure the people who are performing that service for you are getting paid what they’re owed,” said Schenker, who’s been working in the service industry for roughly 18 years.

Traditionally, consumers have taken pride in being good tippers at places like restaurants, which typically pay their workers lower than the minimum wage in expectation they’ll make up the difference in tips. But academics who study the topic say many consumers are now feeling irritated by automatic tip requests at coffee shops and other counter service eateries where tipping has not typically been expected, workers make at least the minimum wage and service is usually limited.

“People do not like unsolicited advice,” said Ismail Karabas, a marketing professor at Murray State University who studies tipping. “They don’t like to be asked for things, especially at the wrong time.”

Some of the requests can also come from odd places. Clarissa Moore, a 35-year-old who works as a supervisor at a utility company in Pennsylvania, said even her mortgage company has been asking for tips lately. Typically, she’s happy to leave a gratuity at restaurants, and sometimes at coffee shops and other fast-food places when the service is good. But, Moore said she believes consumers shouldn’t be asked to tip nearly everywhere they go — and it shouldn’t be something that’s expected of them.

“It makes you feel bad. You feel like you have to do it because they’re asking you to do it,” she said. “But then you have to think about the position that puts people in. They’re paying for something that they really don’t want to pay for, or they’re tipping when they really don’t want to tip — or can’t afford to tip — because they don’t want to feel bad.”

In the book “Emily Post’s Etiquette,” authors Lizzie Post and Daniel Post Senning advise consumers to tip on ride-shares, like Uber and Lyft, as well as food and beverages, including alcohol. But they also write that it’s up to each person to choose how much to tip at a café or a take-out food service, and that consumers shouldn’t feel embarrassed about choosing the lowest suggested tip amount, and don’t have to explain themselves if they don’t tip.

Digital payment methods have been around for a number of years, though experts say the pandemic has accelerated the trend towards more tipping. Michael Lynn, a consumer behavior professor at Cornell University, said consumers were more generous with tips during the early days of the pandemic in an effort to show support for restaurants and other businesses that were hard hit by COVID-19. Many people genuinely wanted to help out and felt sympathetic to workers who held jobs that put them more at risk of catching the virus, Lynn said.

Tips at full-service restaurants grew by 25.3% in the third quarter of 2022, while gratuities at quick or counter service restaurants went up 16.7% compared to the same time in 2021, according to Square, one of the biggest companies operating digital payment methods. Data provided by the company shows continuous growth for the same period since 2019.

As tip requests have become more common, some businesses are advertising it in their job postings to lure in more workers even though the extra money isn’t always guaranteed.

In December, Starbucks rolled out a new tipping option on credit and debit card transactions at its stores, something a group organizing the company’s hourly workers had called for. Since then, a Starbucks spokesperson said nearly half of credit and debit card transactions have included a gratuity, which – along with tips received through cash and the Starbucks app – are distributed based on the number of hours a barista worked on the days the tips were received.

Karabas, the Murray State professor, says some customers, like those who’ve worked in the service industry in the past, want to tip workers at quick service businesses and wouldn’t be irritated by the automatic requests. But for others, research shows they might be less likely to come back to a particular business if they are feeling irritated by the requests, he said.

The final tab might also impact how customers react. Karabas said in the research he did with other academics, they manipulated the payment amounts and found that when the check was high, consumers no longer felt as irritated by the tip requests. That suggests the best time for a coffee shop to ask for that 20% tip, for example, might be on four or five orders of coffee, not a small cup that costs $4.

Some consumers might continue to shrug off the tip requests regardless of the amount.

“If you work for a company, it’s that company’s job to pay you for doing work for them,” said Mike Janavey, a footwear and clothing designer who lives in New York City. “They’re not supposed to be juicing consumers that are already spending money there to pay their employees.”

Schenker, the Philadelphia barista, agrees — to a certain extent.

“The onus should absolutely be on the owners, but that doesn’t change overnight,” he said. “And this is the best thing we have right now.”
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A Japanese whaling operator, after struggling for years to promote its products amid protests from conservationists, has found a new way to cultivate clientele and bolster sales: whale meat vending machines.

The Kujira (Whale) Store, an unmanned outlet that recently opened in the port town of Yokohama near Tokyo, houses three machines for whale sashimi, whale bacon, whale skin and whale steak, as well as canned whale meat. Prices range from 1,000 yen ($7.70) to 3,000 yen ($23).

The outlet features white vending machines decorated with cartoon whales and is the third location to launch in the Japanese capital region. It opened Tuesday after two others were introduced in Tokyo earlier this year as part of Kyodo Senpaku Co.’s new sales drive.

Whale meat has long been a source of controversy but sales in the new vending machines have quietly gotten off to a good start, the operator says. Anti-whaling protests have subsided since Japan in 2019 terminated its much-criticized research hunts in the Antarctic and resumed commercial whaling off the Japanese coasts.

Conservationists say they are worried the move could be a step toward expanded whaling.

“The issue is not the vending machines themselves but what they may lead to,” said Nanami Kurasawa, head of the Iruka & Kujira (Dolphin & Whale) Action Network.

Kurasawa noted the whaling operator is already asking for additional catches and to expand whaling outside of the designated waters.

Kyodo Senpaku hopes to set up vending machines at 100 locations nationwide in five years, company spokesperson Konomu Kubo told The Associated Press. A fourth is to open in Osaka next month.

The idea is to open vending machines near supermarkets, where whale meat is usually unavailable, to cultivate demand, a task crucial for the industry’s survival.

Major supermarket chains have largely stayed away from whale meat to avoid protests by anti-whaling groups and remain cautious even though harassment from activists has subsided, Kubo said.

“As a result, many consumers who want to eat it cannot find or buy whale meat. We launched vending machines at unmanned stores for those people,” he said.

Company officials say sales at the two Tokyo outlets have been significantly higher than expected, keeping staff busy replenishing products.

At the store in the Motomachi district of Yokohama, a posh shopping area near Chinatown, 61-year-old customer Mami Kashiwabara went straight for whale bacon, her father’s favorite. To her disappointment it was sold out, and she settled for frozen onomi, tail meat that is regarded as a rare delicacy.

Kashiwabara says she is aware of the whaling controversy, but that whale meat brings back her childhood memories of eating it at family dinners and school lunches.

“I don’t think it’s good to kill whales meaninglessly. But whale meat is part of Japanese food culture, and we can respect the lives of whales by appreciating their meat,” Kashiwabara said. “I would be happy if I can eat it.”

Kashiwabara said she planned to share her purchase of a 3,000 yen ($23) handy-size chunk, neatly wrapped in a freezer bag, with her husband over sake.

The meat mostly comes from whales caught off Japan’s northeastern coast.

Japan resumed commercial whaling in July 2019 after withdrawing from the International Whaling Commission, ending 30 years of what it called research whaling, which had been criticized by conservationists as a cover for commercial hunts banned by the IWC in 1988.

Under its commercial whaling in the Japanese exclusive economic zone, Japan last year caught 270 whales, less than 80% of the quota and fewer than the number it once hunted in the Antarctic and the northwestern Pacific in its research program.

The decline occurred because fewer minke whales were found along the coast. Kurasawa says the reason for the smaller catch should be examined to see if it is linked to overhunting or climate change.

While conservation groups condemned the resumption of commercial whaling, some see it as a way to let the government’s embattled and expensive whaling program adapt to changing times and tastes.

In a show of determination to keep the whaling industry alive in the coming decades, Kyodo Senpaku will construct a 6 billion yen ($46 million) new mother ship for launch next year to replace the aging Nisshin Maru.

But uncertainty remains.

Whaling is losing support in other whaling nations such as Iceland, where only one whaler remains.

Whales may also be moving away from the Japanese coasts due to a scarcity of saury, a staple of their diet, and other fish possibly due to the impact of climate change, Kubo said.

Whaling in Japan involves only a few hundred people and one operator and accounted for less than 0.1% of total meat consumption in recent years, according to Fisheries Agency data.

Still, conservative governing lawmakers staunchly support commercial whaling and consumption of the meat as part of Japan’s cultural tradition.

Conservationists say whale meat is no longer part of the daily diet in Japan, especially for younger generations.

Whale meat was an affordable source of protein during Japan’s undernourished years after World War II, with annual consumption peaking at 233,000 tons in 1962.

Whale was quickly replaced by other meats. The whale meat supply fell to 6,000 tons in 1986, the year before the moratorium on commercial whaling imposed by the IWC banned the hunting of several whale species.

Under the research whaling, criticized as a cover for commercial hunts because the meat was sold on the market, Japan caught as many as 1,200 whales annually. It has since drastically cut back its catch after international protests escalated and whale meat supply and consumption slumped at home.

Annual meat supply had fluctuated in a range of 3,000-5,000 tons, including imports from Norway and Iceland. The amount further fell in 2019 to 2,000 tons, or 20 grams (less than 1 ounce) of whale meat per person a year, the Fisheries Agency statistics show.

Whaling officials attributed the shrinking supply in the past three years to the absence of imports due to the pandemic, and plan to nearly double this year’s supply with imports of more than 2,500 tons from Iceland.

Japan managed to get Iceland’s only remaining whaler to hunt fin whales exclusively for shipment to Japan, whaling officials said. Iceland caught only one minke whale in the 2021 season, according to the IWC.

Criticizing Iceland’s export to Japan, the International Fund for Animal Welfare said it “opposes all commercial whaling as it is inherently cruel.”

With uncertain outlook for imports, Kyodo Senpaku wants the government to raise Japan’s annual catch quota to levels that can supply about 5,000 tons, which Kubo describes as the threshold to maintain the industry.

“From a long-term perspective, I think it would be difficult to sustain the industry at the current supply levels,” Kubo said. “We must expand both supply and demand, which have both shrunk.”
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Buying an electric vehicle remains challenging for many consumers. High prices and limited access to charging stations can make it a difficult decision, especially in emerging markets like Indonesia. VOA’s Ahadian Utama reports. Camera: Ahadian Utama, Indra Yoga
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WASHINGTON (AP) — The second consecutive quarter of economic growth that the government reported Thursday underscored that the nation isn’t in a recession despite high inflation and the Federal Reserve’s fastest pace of interest rate hikes in four decades.

Yet the U.S. economy is hardly in the clear. The solid growth in the October-December quarter will do little to alter the widespread view of economists that a recession is very likely sometime this year.

For now, the economy expanded at a 2.9% annual rate in the fourth quarter, though some of the underlying figures weren’t as healthy. Consumer spending, for example, grew at a slower pace than in the previous quarter, and business investment was weak. Last quarter’s growth was fueled by factors that won’t likely last. These include companies’ restocking of inventories and a drop in imports, which meant that more spending went to U.S.-made goods.

Increased borrowing rates and still-high inflation are expected to steadily weaken consumer and business spending. Businesses will likely pare expenses in response, which could lead to layoffs and higher unemployment. And a likely recession in the United Kingdom and slower growth in China will erode the revenue and profits of American corporations. Such trends are expected to cause a U.S. recession sometime in the coming months.

Still, there are reasons to expect that a recession, if it does come, will prove to be a comparatively mild one. Many employers, having struggled to hire after huge layoffs during the pandemic, may decide to retain most of their workforces even in a shrinking economy.

Six months of economic decline is a long-held informal definition of a recession. Yet nothing is simple in a post-pandemic economy in which growth was negative in the first half of last year but the job market remained robust, with ultra-low unemployment and healthy levels of hiring. The economy’s direction has confounded the Fed’s policymakers and many private economists ever since growth screeched to a halt in March 2020, when COVID-19 struck and 22 million Americans were suddenly thrown out of work.

Inflation, the economy’s biggest threat last year, is now showing signs of steadily declining. Used and new cars are becoming less expensive. Price increases for furniture, clothes and other physical goods are slowing.

Last year, the Fed raised its benchmark interest rate seven times, from zero to a range of 4.25% to 4.5%. The Fed’s policymakers have projected that they will keep raising their key rate until it tops 5%, which would be the highest level in 15 years. As borrowing costs swell, fewer Americans can afford a mortgage or an auto loan. Higher rates, combined with inflated prices, could deprive the economy of its main engine — healthy consumer spending.

Fed officials have made clear that they’re willing to tip the economy into a recession if necessary to defeat high inflation, and most economists believe them. Many analysts envision a recession beginning as early as the April-June quarter this year.

So what is the likelihood of a recession? Here are some questions and answers:

Why do many economists foresee a recession?

They expect the Fed’s aggressive rate hikes and high inflation to overwhelm consumers and businesses, forcing them to slow their spending and investment. Businesses will likely also have to cut jobs, causing spending to fall further.

Consumers have so far proved remarkably resilient in the face of higher rates and rising prices. Still, there are signs that their sturdiness is starting to crack.

Retail sales have dropped for two months in a row. The Fed’s so-called beige book, a collection of anecdotal reports from businesses around the country, shows that retailers are increasingly seeing consumers resist higher prices.

Credit card debt is also rising — evidence that Americans are having to borrow more to maintain their spending levels, a trend that probably isn’t sustainable.

More than half the economists surveyed by the National Association for Business Economics say the likelihood of a recession this year is above 50%.

What are some signs that a recession may have begun?

The clearest signal would be a steady rise in job losses and a surge in unemployment. Claudia Sahm, an economist and former Fed staff member, has noted that since World War II, an increase in the unemployment rate of a half-percentage point over several months has always signaled a recession has begun.

Many economists monitor the number of people who seek unemployment benefits each week, a gauge that indicates whether layoffs are worsening. Weekly applications for jobless aid actually dropped last week to a historically low 190,000. Employers continue to add many jobs, causing the unemployment rate to fall in December to 3.5%, a half-century low, from 3.7%.

Any other signals to watch for?

Economists monitor changes in the interest payments, or yields, on different bonds for a recession signal known as an “inverted yield curve.” This occurs when the yield on the 10-year Treasury falls below the yield on a short-term Treasury, such as the three-month T-bill. That is unusual. Normally, longer-term bonds pay investors a richer yield in exchange for tying up their money for a longer period.

Inverted yield curves generally mean that investors foresee a recession that will compel the Fed to slash rates. Inverted curves often predate recessions. Still, it can take 18 to 24 months for a downturn to arrive after the yield curve inverts.

Ever since July, the yield on the two-year Treasury note has exceeded the 10-year yield, suggesting that markets expect a recession soon. And the three-month yield has also risen far above the 10-year, an inversion that has an even better track record at predicting recessions.

Who decides when a recession has started?

Recessions are officially declared by the obscure-sounding National Bureau of Economic Research, a group of economists whose Business Cycle Dating Committee defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.”

The committee considers trends in hiring. It also assesses many other data points, including gauges of income, employment, inflation-adjusted spending, retail sales and factory output. It puts heavy weight on a measure of inflation-adjusted income that excludes government support payments like Social Security.

Yet the NBER typically doesn’t declare a recession until well after one has begun, sometimes for up to a year.

Does high inflation typically lead to a recession?

Not always. Inflation reached 4.7% in 2006, at that point the highest in 15 years, without causing a downturn. (The 2008-2009 recession that followed was caused by the bursting of the housing bubble).

But when it gets as high as it did last year — it reached a 40-year peak of 9.1% in June — a downturn becomes increasingly likely.

That’s for two reasons: First, the Fed will sharply raise borrowing costs when inflation gets that high. Higher rates then drag down the economy as consumers are less able to afford homes, cars and other major purchases.

High inflation also distorts the economy on its own. Consumer spending, adjusted for inflation, weakens. And businesses grow uncertain about the future economic outlook. Many of them pull back on their expansion plans and stop hiring. This can lead to higher unemployment as some people choose to leave jobs and aren’t replaced.
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