Shake Shack Denies Price Hikes for No-Tip Orders Amid Viral Video
Shake Shack has denied increasing prices for customers who decline to tip at self-service kiosks, attributing a viral video's claims to a technology error. The incident at Salt Lake City International Airport sparked debate about tipping culture.
Key takeaways
- Shake Shack denies that prices were increased due to customers declining to tip.
- The company stated a reported price increase at a Salt Lake City International Airport kiosk was due to a technology error by licensee HMSHost.
- Shake Shack confirmed the technology issue has been resolved.
- The incident has fueled ongoing debate about tipping culture and increased tipping expectations.
What Happened
A viral video shared online showed a price increase on Shake Shack milkshakes at a Salt Lake City International Airport kiosk after customers declined to add a tip. The couple recorded the transaction, noting each of their three $5.99 Classic Shakes appeared to increase by 50 cents after they selected 'no tip,' with a message indicating a pricing update.
Shake Shack's Response
Shake Shack stated that the airport location is operated by a licensee, HMSHost, and that it is not company policy to increase menu item prices for customers who do not add a tip. The company reported that HMSHost investigated and determined the price change was due to an error in the kiosk's technology, which has since been resolved.
Background
The incident comes amid a broader discussion about tipping culture in the United States. A significant portion of Americans believe tipping is expected in more places than in the past, and many express annoyance with pre-entered tip screens and the increasing prevalence of tipping requests at self-service and takeout establishments.
Key Facts
- A video circulating online showed a price increase on Shake Shack milkshakes at Salt Lake City International Airport after customers declined to tip.
- Each of the three Classic Shakes, initially priced at $5.99, appeared to increase by 50 cents after the 'no tip' option was selected.
- Shake Shack stated the affected kiosk was operated by licensee HMSHost.
- The company clarified that increasing prices for customers who do not tip is not its policy, nor its licensees' policy.
- HMSHost investigated and determined the issue was a technology error that has since been corrected.
- Shake Shack founder Danny Meyer has previously expressed that tipping is not obligatory for takeout orders.
- A 2023 Pew Research Center survey indicated that 72% of Americans felt tipping was expected in more venues than five years prior.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
