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BusinessQuiet 3d · day 4 ↳ Shake Shack Tipping Backlash

Shake Shack Says Kiosk Price Hike After 'No Tip' Was Technology Error

A viral video showing milkshake prices jump 50 cents when a customer declines to tip has reignited debate over tipping culture.

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Shake Shack Says Kiosk Price Hike After 'No Tip' Was Technology Error
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What to know

  • A viral video showed a Shake Shack airport kiosk raising milkshake prices by 50 cents after a customer selected "no tip," sparking millions of views and backlash.
  • Shake Shack and HMSHost attributed the price increase to a kiosk technology error, denied it is company policy, and stated the problem has been resolved.
  • The incident reignited broad frustration with U.S. tipping culture: a Popmenu survey found 78% of customers believe tipping practices have become unreasonable, with requests now appearing at self-service kiosks where no human service is provided.

How it unfolded

  1. Analysis Powell clarifies he initially did not know if price hike was deliberate

    In an extended Fox News interview, Powell explained he was skeptical and unsure whether the price change was intentional or a glitch. He said the incident felt "fishy" because he had visited the location multiple times before without noticing anything similar.

    “Because I had been to that Shake Shack before, it felt fishy to me, but honestly, I did not know.”

    Brian Powell · Google News ↗
  2. Reaction Shake Shack denies policy, HMSHost blames technology error

    Shake Shack stated the price increase was not company policy and launched an investigation with HMSHost. HMSHost attributed the change to a kiosk technology error that had been resolved.

    “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 · Newswires ↗
  3. Report Viral video sparks questions about Shake Shack pricing

    The video amassed millions of views on TikTok and X. Major outlets began reporting on the apparent pricing discrepancy tied to tip selection.

  4. Event Powell's wife notices price increase after declining tip

    At a Shake Shack in Salt Lake City airport, Powell's wife purchased three milkshakes and noticed the prices increased after she selected "no tip" at the kiosk. She reported this to Powell, who was initially skeptical.

  5. Event Powell recreates order and records price jump

    Powell returned to the kiosk with his wife and duplicated the order while filming. Two shakes initially priced at $5.99 each increased to $6.49 after he selected "no tip"—a 50-cent increase per item.

    “We basically went up and duplicated our order, and the same thing happened.”

    Brian Powell · Google News ↗
  6. Analysis Coverage highlights broader tipping frustration in U.S.

    Reporting tied the viral video to growing backlash against tipping culture. A Popmenu survey found 78% of customers believe tipping has "become ridiculous," and industry experts noted tip requests have expanded to self-service scenarios where no extra work is performed.

    “Tipping in America is truly out of control. I understand many folks get most of their pay from tips, but businesses have started to ask for tips when no extra work was done. And in some cases, no human was even present.”

    Kashif Ahmed, financial planner with American Private Wealth · Newswires ↗

What people are saying verbatim

“My wife came to me after buying some shakes and said, 'They charged me more after I didn't tip.'”

Brian Powell, Customer · Fox News ↗

“Everything just went up 50 cents. Every item went up by 50 cents, just making sure that everybody knows.”

B.D. Powell (TikToker), Customer · Daily Wire ↗

“It is not Shake Shack policy, nor that of our licensees, to increase the price of menu items when no tip is added.”

Shake Shack, Company spokesperson · Fox News ↗

“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 · Daily Wire ↗

“Tipping in America is truly out of control. I understand many folks get most of their pay from tips, but businesses have started to ask for tips when no extra work was done.”

Kashif Ahmed, Financial planner, American Private Wealth · Daily Wire ↗

“Because I had been to that Shake Shack before, it felt fishy to me, but honestly, I did not know.”

Brian Powell, Customer · Fox News ↗