• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

2

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

2

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Personal FinanceTipping

Starbucks has rolled out a new tipping system and customers are freaking out

Prarthana Prakash
By
Prarthana Prakash
Prarthana Prakash
Europe Business News Reporter
Down Arrow Button Icon
Prarthana Prakash
By
Prarthana Prakash
Prarthana Prakash
Europe Business News Reporter
Down Arrow Button Icon
December 5, 2022, 5:41 PM ET
A Starbucks sign against the blue sky.
A sign with the Starbucks logo is seen at its coffeehouse in Williamsport.Paul Weaver—SOPA Images/LightRocket/Getty Images

Tipping at restaurants and coffee shops can be tricky business. Technically, it isn’t mandatory, but it’s increasingly looked down upon if you skip it altogether. That’s exactly the pickle customers are finding themselves in with the new tipping system at Starbucks.

The world-famous coffee chain announced the initiative in May as a way for customers to “recognize their favorite baristas.” They began rolling it out in some stores in September, where customers paying with debit or credit cards can give the barista a $1, $2 or custom tip—prompting some strong feelings in the process.

A Reddit thread about the tipping system has racked up more than 100 comments.  

“It works so well for in-store purchases but yeah having it in drive thru is so awkward I never know what to say,” one user wrote 

One Twitter user wrote: “I went through the Starbucks Drive through and got one drink and they now start asking if you want to tip as soon as you pull your card out to pay while looking at you It’s so awkward…… just pay these people a better wage.”

Starting August 1, Starbucks increased the average pay for employees to nearly $17/hour in the U.S. Those hired before May 2 would receive either a 3% wage increase or $15/hour, whichever is higher, a spokesperson at Starbucks said.

Another Twitter user wrote: “I’m really not trying to be rude bc I know customer service jobs are hard work but now they want tips at the drive-thru at my Starbucks when you pay with a card… you’re literally just handing it to me.”

One Facebook user wrote: “People WILL call me cheap, but I rarely tip on to-go orders or grabbing a coffee…I do tip very well when I go to dinner, or use various services.
I don’t really want to leave a 25% tip on a drive thru coffee order What are your thoughts?”

But not everyone dislikes the new system. Several Reddit users said they would gladly tip the baristas. People who identified themselves as former Starbucks workers also said it was a welcome change.

The Starbucks Workers Union (SBWU) told Fortune that the credit card tipping program directly resulted from their campaign.

“Credit card tipping was one of the first demands that unionizing workers made in Buffalo, NY last fall when we launched our campaign,” a spokesperson from SBWU said. “Only after we began putting pressure on Starbucks did the company announce its plans to implement credit card tipping.”

A spokesperson for Starbucks told Fortune that employees at the company had been awaiting a credit card tipping functionality, which adds to the existing wage and benefit system. The company said it has been in talks about a digital tipping system before any union activity began.

“The system is similar to what you would see at other retailers and not unique to Starbucks,” the spokesperson said. “We have seen very positive feedback from both customers and partners (employees) when it comes to the tipping.”

Starbucks employees have been the center of a unionization campaign in the past year. The movement has spread quickly across the nation, as the company went from no unions last December, to over 250 unionized stores today.

Dec. 5, 2022: This story has been updated with additional comment from Starbucks.

Our new weekly Impact Report newsletter will examine how ESG news and trends are shaping the roles and responsibilities of today's executives—and how they can best navigate those challenges. Subscribe here.

About the Author
Prarthana Prakash
By Prarthana PrakashEurope Business News Reporter
LinkedIn icon

Prarthana Prakash was a Europe business reporter at Fortune.

See full bioRight Arrow Button Icon

Latest in Personal Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Personal Finance

greg
Personal FinanceAviation
Mamdani’s New York is coming to tax your private jet. Here’s how to prepare
By Greg RaiffMay 16, 2026
11 hours ago
Berkshire triples Alphabet stake and buys Delta stock while dumping Amazon in Greg Abel’s first quarter as CEO
InvestingBerkshire Hathaway
Berkshire triples Alphabet stake and buys Delta stock while dumping Amazon in Greg Abel’s first quarter as CEO
By Josh Funk and The Associated PressMay 15, 2026
21 hours ago
Kevin Warsh, U.S. President Donald Trump's nominee for Chair of the Federal Reserve, is sworn in to testify during his Senate Committee on Banking, Housing, and Urban Affairs confirmation hearing in the Dirksen Senate Office Building on April 21, 2026 in Washington, DC.
EconomyFed interest rates
Dominoes are steadily falling in the path of the rate cuts Trump wants to see from Kevin Warsh
By Eleanor PringleMay 15, 2026
1 day ago
Harrison Ford wearing a bow tie
SuccessWealth
Before ‘Star Wars’ made him a multimillionaire, Harrison Ford struggled to make ends meet—so he spent 15 years working a trades side-gig
By Preston ForeMay 15, 2026
1 day ago
newsom
Personal FinanceCalifornia
Gavin Newsom blasts Trump and Bessent as ‘dumb and dumber’ while unveiling $350 billion state budget
By Trân Nguyễn and The Associated PressMay 15, 2026
1 day ago
new mexico
North AmericaNew Mexico
New Mexico is raking in oil profits from Iran War, gaining $59 million for every $1 added to the price of a barrel
By Morgan Lee and The Associated PressMay 15, 2026
1 day ago

Most Popular

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
Success
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
3 days ago
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
8 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
4 days ago
Current price of oil as of May 15, 2026
Personal Finance
Current price of oil as of May 15, 2026
By Joseph HostetlerMay 15, 2026
1 day ago
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
Future of Work
Meet the 20-year-old CEO who launched a company in high school to solve Gen Z's entry-level job crisis
By Jake AngeloMay 16, 2026
12 hours ago
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
Future of Work
‘You’re not a hero, you’re a liability’: Shark Tank’s Kevin O’Leary warns Gen Z founders to stop glorifying hustle culture
By Jacqueline MunisMay 16, 2026
8 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.