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BusinessQuiet 3d · day 4 ↳ Shake Shack Tipping Backlash

Shake Shack disputes viral claim that skipping tip on kiosk raised prices

A TikTok test showing shake prices jump after selecting 'no tip' ignites tipping-fatigue debate; Shake Shack blames its airport licensee, not policy.

Shake Shack disputes viral claim that skipping tip on kiosk raised prices
nypost.com

Conversation activity · last 4 days presspostscomments the crowd ↓

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What to know

  • A viral TikTok showed a Shake Shack kiosk raising the price of three shakes by 50 cents each after the customer selected 'no tip.'
  • Shake Shack denies the price change is tied to tipping choice and says it is investigating with HMSHost, the licensee running the airport kiosk system.
  • Skeptics online noted the video doesn't show pricing with a tip selected, and some suggested the increase was a time-based 'late night convenience fee' rather than a tip penalty.
  • Coverage ties the incident to broader 'tipping fatigue,' citing survey data showing 78% of consumers now feel fatigued by tipping prompts, up from 65% a year earlier.

How it unfolded

  1. Outlets cite a Popmenu survey showing 78% of consumers report tipping fatigue, up from 65% a year earlier, framing the Shake Shack episode within broader frustration over digital tip prompts.

  2. Shake Shack tells reporters the price change was not caused by the no-tip selection, reiterating it is examining the matter with HMSHost.

  3. News Post, Yahoo Finance, The Mary Sue, The Daily Dot and others report on the video, noting it does not prove a causal link between the tip selection and the price increase.

  4. After Powell declines to tip, the kiosk displays an error about a pricing update; reviewing the cart shows each $5.99 shake now priced at $6.49, a total increase of $1.50.

    “Everything just went up fifty cents”

    B.D. Powell · Google News ↗
  5. Shake Shack commented under Powell's video (before comments were disabled) saying the price change is not company policy and that it is looking into the incident with licensee HMSHost, which operates the airport kiosk system.

    “This is not a Shake Shack policy, and we're currently looking into it with our licensee, HMSHost, that operates the Salt Lake City airport location and kiosk system.”

    Shake Shack · Google News ↗
  6. Powell orders three Classic Shakes at a Shake Shack in the Salt Lake City airport and selects 'no tip' at checkout to test his wife's theory that declining gratuity raises prices.

    “My wife says that if you don't tip at Shake Shack, they make it more expensive per item”

    B.D. Powell · Google News ↗

What people are saying verbatim

“My wife says that if you don't tip at Shake Shack, they make it more expensive per item”

B.D. Powell, TikTok creator · TikTok (via New York Post) ↗ · Aug 9

“Everything just went up fifty cents”

B.D. Powell, TikTok creator · TikTok (via New York Post) ↗ · Aug 9

“Uh Oh! There has been a pricing update on one or more of your cart items. Please review these changes in your cart.”

Shake Shack kiosk, Self-checkout system message · TikTok (via New York Post) ↗ · Aug 9

“Thank you for bringing this to our attention. This is not a Shake Shack policy, and we're currently looking into it with our licensee, HMSHost, that operates the Salt Lake City airport location and kiosk system.”

Shake Shack, Company statement · TikTok comment (via New York Post) ↗ · Aug 9

“you didn't show what happens to the pricing when you do leave a tip”

Reddit commenter, Redditor · Reddit (via New York Post) ↗ · Aug 9

The conversation unedited, verbatim

0 collected here from 0 sites · 0 voices below over time ↑

Where people stand verbatim

Reaction split between outrage treating the kiosk change as a punitive 'no-tip surcharge' and skepticism questioning whether Powell's video actually proved causation.

The dispute Whether the price jump was actually triggered by declining the tip, or was an unrelated time-based fee that Powell's video made look like a tipping penalty.

many voices

This is a predatory 'no-tip surcharge' and evidence tipping culture has gone too far.

some voices

The video doesn't prove tipping caused the price change; it may be a mistimed late-night fee.

  • “you didn't show what happens to the pricing when you do leave a tip”

    Redditor · Reddit (via New York Post) ↗
  • “Pretty sure I saw this in a different sub, and people were saying the price increased because shake shack has a late night convenience fee past a certain time, and the people videoing timed the price change to make it look like a tip issue”

    viewer · Social media comment (via New York Post) ↗
Still unanswered
  • What actually caused the 'pricing update' message — tip selection, a time-based fee, or a system error?
  • Does the tip money collected via these kiosks reach hourly workers, or is oversight murky as some coverage suggests?