A viral TikTok video sparked debate and accusations that Shake Shack automatically increases prices on menu items for customers who decline to leave a tip at self-checkout kiosks. The fast-casual chain has denied the allegations and stated it is investigating the incident with its third-party operator.
The customer, identified as B.D. Powell on TikTok, claimed in a video with millions of views that after selecting the 'no tip' option on a kiosk at a Salt Lake City airport location, the prices of his order increased. Powell stated he ordered three classic shakes, which initially showed a price of $5.99 each. After proceeding to the tip screen and selecting 'no tip,' the kiosk displayed a message indicating a pricing update. He alleged that each of the three shakes then cost $6.49, a total increase of $1.50.
Shake Shack responded to the customer's claims in the TikTok comments, stating that the alleged price increase is not a company policy. The company indicated it was investigating the matter with its licensee, HMSHost, which operates the specific kiosk system at the airport location. "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," the company stated.
The incident drew widespread reaction online, with many commenters expressing dismay at the potential practice and the broader issue of tipping culture in the United States. Some viewers questioned the legality of such a surcharge, while others agreed that menu prices are already high. However, some commenters suggested that Powell had not provided sufficient evidence to establish a direct causal link between his tipping choice and the price change, proposing alternative explanations such as timed price adjustments or late-night fees.