Why We’re All Talking About Shake Shack’s Tipping “Problem” 

Shack Shake has gone viral before, but right now, it’s for all the wrong reasons. If you’ve spent any time scrolling on social media lately, odds are you’ve been hearing quite a bit about the burger joint’s tipping problem. Apparently, if you opt out of tipping at Shake Shack, you just might wind up paying a higher price for your food.

Videos by Sporked

And unexpected price increases—almost like the ill-fated dynamic pricing experiment Wendy’s ran in 2024—are certainly not what fast foodies want.

Shake Shack Appeared to Raise Prices When a Guest Skipped the Tip

In a video shared to social media, a couple stopped by a Shake Shack inside the Salt Lake City airport and placed an order—only to discover a tipping change. When they declined to tip, the cost of every item in that order increased.

After the tip was declined, the video shows that the Shake Shack kiosk displayed a message stating there had been “a pricing update on one or more” of the order’s items. The pricing update turned out to be a $0.50 increase on every item added to that order.

The (obviously) unhappy customers’ experience quickly went viral, and viewers expressed surprise—and plenty of dissatisfaction of their own—in the comments. I mean, who wants to pay more for refusing to tip a kiosk? It’s like the prices changed to automatically build in extra profit.

But before you swear off ever visiting a Shake Shack again, know that Shake Shack did respond to the video. And their answer debunks the idea that the burger chain is raising prices on no-tip orders.

Shake Shack denies that it upcharges customers who refuse to tip. They even commented on the original, saying, “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.”

And the restaurant doubled down. Shake Shack posted a statement online about the surprise upcharges, saying, “It is not Shake Shack policy, nor that of our licensees, to increase the price of menu items when no tip is 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.”

If Shake Shack Isn’t Raising Prices Randomly, Why Does This Matter?

Now that Shake Shack officially confirmed that this case of sudden price increases was nothing but an error, you’re probably wondering why it matters—and why everyone is still talking about it. Well, it’s likely because this isn’t the first time we’ve seen a fast food restaurant suddenly jack up their prices. 

This tipping fiasco is reminiscent of surge pricing, or dynamic pricing, which changes the price of items based on factors like time of day, weather, or even demand. And, as increasingly more fast food chains like McDonald’s, Taco Bell, and Wendy’s have introduced digital kiosks for in-restaurant ordering (and so too have stores like Wal-Mart), it’s had a lot of people wondering if those digital screens would allow for more frequent, unpredictable, and unexpected price changes… such as increasing costs if you opt to skip the tip.

Shake Shack has reassured customers that only one of its franchisees (and franchise locations) experienced the no-tipping error. But the reason this single order went viral? It essentially confirmed exactly what we’ve all been worried about.

Right now, you don’t have to worry about dynamic pricing at Shake Shack. But keep a close eye on those kiosk screens; you never know who might test out dynamic pricing for real across the restaurant industry.