Customers hate my cafe's tip screen. My baristas need it. Keep it or ditch it?

The question

An illustrative letter.

The answer

My dear, you are standing in a crossfire that did not exist a few years ago. Customers feel pressed by a screen that asks for a percentage on a cup of coffee, and your baristas count on that screen to make a living wage. Both feelings are real. The good news is that you can decide this with facts rather than guesswork.

Why do customers dislike the screens?

Expectations have shifted fast, and many people feel uneasy. In a 2023 Pew Research Center survey, 72 percent of American adults said tipping is expected in more places than five years earlier, and only about a third said it is easy to know whether to leave a gratuity. Among people buying coffee at a coffee shop, only a quarter said they always or often do. When your screen asks every customer for 20 percent or more, many feel judged, even if they never say so.

What are the rules on gratuities?

Under federal law, employers may not keep any part of their employees' gratuities, whether directly or through a pool, and that includes owners and managers. In Michigan, an employer may pay workers who receive gratuities a lower base wage, $5.49 an hour in 2026, as long as their wages plus gratuities reach the full minimum wage of $13.73, and the employer makes up any shortfall. If you pay that way now, moving away from gratuities means raising base pay substantially. A payroll professional or employment attorney can confirm the details for your café.

What do my baristas actually earn from the screen?

Find out before you change anything. Your payment system can show total gratuities over the past few months. Divide by the hours your team worked, and you have the average gratuity per hour. That figure is what any change must protect if you want to keep your best people. Then ask your baristas directly how they would feel about each option. Some prefer the steadiness of a higher wage. Others earn more on busy weekends and would rather keep gratuities. Their answer matters as much as the numbers.

What would a no-tipping model cost?

Work it through with your own figures. Suppose, for example, your team works 200 hours a week and you raise pay by $5 an hour to replace gratuities. That is $1,000 a week in wages, plus the employer's share of payroll taxes, 7.65 percent for Social Security and Medicare. If you sell 2,000 drinks a week, the increase comes to a little over 50 cents a drink. One coffee shop owner who dropped gratuities raised pay from $8 to $18 an hour and raised menu prices by about $1 an item, saying his team now has steady income through the slow months. Your numbers will differ, but the method is the same.

Customers often accept a clear, honest price more easily than a request at the register. A short note on the menu, explaining that prices include fair pay and that no gratuity is expected, helps them understand why your latte costs a little more.

What if we keep gratuities but soften the screen?

That is a reasonable middle path. Many payment systems let you change the preset amounts, lower them, make a no-gratuity choice equally visible, or show the screen only for made-to-order drinks rather than a bottle of water. Some cafés turn the screen off and keep a simple jar instead. Each of these reduces the pressure customers feel while preserving most of what your team earns.

How do I test it?

Choose one option and try it for a set time, perhaps a month or a full season, so that slow weeks and busy weeks both count. Before you start, write down what you will measure: drink sales, average ticket, barista pay per hour, staff turnover and customer comments or reviews. At the end, sit down with your team and compare. A test is easier to try, and easier to reverse, than a permanent announcement.

How do I tell customers about a change?

Plainly and warmly. A sign at the counter and a line on your menu can explain what you are doing and why: fair, steady pay for your team, and no pressure for guests. People appreciate being told the reason.

What do customers say from their side?

Junah also answered a letter from a customer in the same town who feels guilty pressing the no-gratuity button on a $6 latte. You will find it among her other letters, and it may help you see the screen through your guests' eyes.

You care about both your customers and your team, my dear, and that is exactly why this is hard. Ask your baristas, run the numbers, test for a month, and let the results guide you.

One thing to do this week

Pull the last three months of gratuities from your payment system, divide by staff hours, and ask your baristas which option they would choose.