Shake Shack has refuted claims that it implemented a "no tip" fee for customers who did not leave a gratuity on self-checkout orders. The company attributes the controversy to a system error at a specific airport location.
The issue gained traction after TikTok creator B.D. Powell shared a video alleging he was charged an additional 50 cents per shake when he selected the "no tip" option on a kiosk at the Salt Lake City airport.
Powell's video, which garnered over 4.2 million views, detailed his experience ordering three classic shakes priced at $5.99 each. When presented with the gratuity screen offering 15%, 18%, and 20% tip options, he chose not to leave a tip. Following this selection, a "pricing update" disclaimer appeared, increasing the price of each shake to $6.49.
Shake Shack representatives, however, denied any intentional policy to increase prices for customers who decline to tip. A spokesperson stated that the pricing issue originated with "an error within their kiosk technology" at the airport location, which is owned and operated by a licensee, HMSHost. The company confirmed that this issue has since been resolved.
Powell's initial warning to viewers against visiting the chain sparked widespread discussion online regarding tipping culture in the United States. Many commenters expressed frustration with what they described as an "intolerable toxic limit" and "guilt-tipping culture."
The incident occurs amid a broader trend of consumers accusing various businesses of employing less transparent methods to increase profit margins during periods of inflation. In June, a restaurant in Tampa, Florida, faced criticism for allegedly adding a 3% "venue fee" to customer bills.