Consumers Beware: Businesses Are Using This Trick That Could Cause You to Tip Double

Dining out and ordering takeout and delivery are luxuries not everyone can afford. And even people who like to prioritize restaurant meals may be struggling to do so these days given that the cost of food away from home is up 7.1% on an annual basis, according to July's Consumer Price Index. Add tipping fatigue into the mix, and it's a wonder more of us don't just cook at home.

Tipping has long been a mainstay of dining out. But since the pandemic, the pressure to tip restaurant and food service workers has intensified.

These days, it's pretty much impossible to pick up a coffee or pre-made sandwich without being asked to add a tip after you've swiped your credit card. And while it used to be that a 20% tip was generous, nowadays, it's basically become the minimum.

Compounding the issue is that some businesses are using tactics that could result in double tipping. Whether that's intentional or not is up for debate. But it's important to be aware of these tricks that could cause you to spend more money than you bargained for.

1. The pre- and post-pickup tip prompt

Sometimes, it's easier to just pick up food than to wait to have it delivered. You'll often be given the option to place an order online in advance and include a tip should you choose to do so. But then, when you go to pick up your order, you may be asked to sign something (either a receipt or screen) that includes an additional tip option.

Some people will argue that if you're fetching your own food, you shouldn't be tipping in the first place. Others will say that there's still work that goes into preparing your takeout order, and restaurant workers should be tipped because of that.

Tipping on takeout is a nice thing to do. But you really should not feel compelled to do it twice. So pay attention when tipping upfront so you don't wind up accidentally doing so again when you check out.

2. The automatic service charge

It's long been common practice to include a gratuity for larger parties at restaurants. In fact, if you're a group of six or more, you might see a tip added to your tab automatically.

You may decide to tip beyond that point if you feel you received outstanding service. But if you don't pay attention, you might end up tipping 40% if the restaurant automatically adds a 20% gratuity and you tip 20% on top of that.

What's more, some restaurants add an automatic gratuity for all tables, regardless of party size. Dining establishments are required to tell you when they're doing this. But they might hide that information in small print at the bottom of their menus. Pay attention to the fine print and check your receipt carefully before adding a tip so you don't wind up spending more than planned.

Don't get stuck tipping twice

Restaurant work isn't easy. Servers have to be on their feet for hours on end, often dealing with demanding customers at the same time. So if you're in a position where you can afford to dine out, then it really does pay to do the right thing and tip regularly.

But that doesn't mean you should get stuck tipping twice. So always pay close attention to the different fees you're being charged, whether it's delivery, a sit-down meal, or a takeout order.

You no doubt work hard for your money, and dining out may be an occasional treat that's hard for you to swing. You don't want to make it even less affordable by tipping double by accident.