Did Shake Shack really charge customers more for not tipping? Here’s what the company says
Opting for the “no tip” button might not be saving you money, at least at one particular restaurant.
Users on social media are circulating theories claiming that fast-food chain Shake Shack raises prices on individual items when customers choose not to leave a tip on an order, all thanks to a viral TikTok.
“My wife says that if you don’t tip at Shake Shack, they make it more expensive per item, so we are about to find out,” B.D. Powell said in the video, which has garnered over 4.3 million views.
The couple then proceeded to use the self-pay kiosks at the Salt Lake City International Airport Shake Shack location, ordering three milkshakes: strawberry, cookies and cream, and vanilla with whipped cream. Each drink was priced at $5.99, with an extra charge for the shake with whipped cream.
As the couple prepared to pay, they clicked the “no tip” option at checkout, which led to a message popping up on-screen.
“Uh Oh! There’s been a pricing update on one or more of your cart items. Please review these changes in your cart,” the message read. The order review then proceeded to show all items with a 50-cent increase, allegedly proving the theory.
The comments section for the original video has been turned off, but it has been clipped and circulated across other platforms, leading users on social media to share their disapproval.
“If the ‘tip’ is being forced on customers, then that is not a tip anymore and just a charge,” one user said on X about the video. Another added: “Well, never going THERE again! That’s extortion!”
The restaurant chain has since denied the practice, telling Fast Company that “it is not Shake Shack policy, nor that of our licensees, to increase the price of menu items when no tip is added.”
The Shake Shack spokesperson, who provided comment via an emailed statement, explained that the pricing issues from the video occurred at a location operated by a licensee named HMSHost.
The statement added: “HMSHost investigated the matter and determined it was an error within their kiosk technology unrelated to tipping. They have informed us that the issue has been resolved. We’ll continue working with all our licensed partners to make sure every guest is taken care of at Shake Shack.”
Still, the situation has reignited a broader conversation about tipping culture in the US.
“We need to all collectively agree to not tip unless an actual server is involved. Enough of this BS,” a user said on X. Another added: “I have no problem with tipping, but the idea of tipping is odd. Tipping is supposed to be for excellent service, so why would I tip BEFORE I get my food or before I receive my service?”