Shake Shack responds to customers claiming they were charged more for declining to tip

A popular fast-food burger restaurant has issued a statement following online anger over accusations that it 'charges more' for people who decline to tip.

Shake Shack, a popular fast-food outlet which began trading from a burger stand in New York City has been accused of adding a sneaky charge to punters bills if they decline to tip.

The accusations came to light after BD Powell visited the Salt Lake City Airport Shake Shack, where he posted a video of a terminal appearing to add some money to his bill on TikTok after he declined to tip staff.

The video has since gone viral.

Shake Shack have been accused of adding $1.50 on to punter's bills who decline to tip staff. (Getty stock image)

What happens in the viral Shake Shack video?

In the video, Mr Powell is wondering whether his wife’s suggestion about Shake Shack adding a surcharge to individual items by non-tipping customers was true.

The couple decide to put things to the test.

In the video, he tries to order three milkshakes, which are priced at $5.99 each.

He stacks up his order as normal, but when he presses 'no tip' a warning message comes up which says: "Uh Oh! There has been a pricing update on one or more of your cart items. Please review these changes in your cart."

After accepting the message, the price of the order jumps from $18.46 to $19.96, with no explanation provided by the terminal.

Powell added: "Everything just went up 50 cents. Every item went up by 50 cents. Just making sure everybody knows. Do not go there."

The video has sparked uproar across social media - even after Shake Shake's official account commented on the post (Getty stock image)

What have Shake Shack said about the $1.50 'additional charge'?

Corey Gee, spokesperson from Shake Shack said in a Statement to the Daily Mail that this additional charge was the result of an error in the software at that particular kiosk, rather than Shake Shack policy.

He said: "It is not Shake Shack policy, nor that of our licensees, to increase the price of menu items when no tip is added.

"The pricing issue shared online occurred at an airport Shack that is owned and operated by our licensee HMSHost.

"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."

Many posters on social media questioned why they should be paying tips when the order service is automated? (Photo by Kichul Shin/NurPhoto via Getty Images)

What has been the reaction to the shake shack video?

The incident prompted a wider discussion online about tipping culture in the US, particularly when customers are ordering through self-service technology.

Several Reddit users criticized the idea of being prompted to tip while using ordering kiosks.

One commenter described the situation as 'outrageous', arguing that tipping should not become increasingly common at self-service terminals.

Another said they would simply leave if a restaurant unexpectedly increased the price after declining a tip, adding that tipping had become excessive.

A third commenter said they were generally willing to tip but questioned why customers should be expected to do so when they are ordering through a kiosk and have limited interaction with staff.

The viral video therefore appears to have raised questions about both the reliability of digital ordering systems and the increasingly prominent role of tipping prompts in everyday purchases.