Report: 47% of Americans tip 20% at dine-in restaurants

Dive Brief:

Forty-seven percent of Americans are tipping at a 20% rate at restaurants with table service this year, according to September survey of roughly 1,000 Americans from PlayUSA.
Tip rates drop dramatically at restaurants with no table service, however, with 61% of diners saying they don’t tip at all at these eateries.
Despite menu prices rising 8.8% at full-service restaurants this year, 17% of consumers said they tip over 20% at these establishments, per the survey.

Dive Insight:

Inflation is still having a negative impact on tipping, with about 17% of Americans reporting they tip less than they used to. Still, 10% say they tip more, according to PlayUSA. Since the pandemic began in 2020, roughly 25% of respondents said they tip at a higher rate and around 19% tip a wider range of service workers. Only 8% of surveyed consumers said they have been tipping less during this time period. A Popmenu report from last year showed 58% of consumers increased the tips they provide servers and delivery drivers during the pandemic.

Restaurants are the top places where Americans tip, with 98% saying they tip at restaurants with table service. Thirty-one percent said they tip for takeout, and only 25% said they give money while checking out at restaurants without table service. Coffee shops see relatively little in tips, with 39% of Americans saying they don’t tip at all, while 22% said they tip only a small amount.

POS tech and iPads that ask diners if they would like to leave a tip may have increased tipping, PlayUSA said. Diners using smartphones to order and pay have also raised tipping rates, Kelly Esten, SVP & GM of enterprise at Toast, said. A Toast report found customers are leaving tips that were 9.9% higher during Q2 2022 than the same period in 2021. Diners using card payments also tipped 19.7% on average for on-premise dining.

Service remains the top determinant of customer tips, PlayUSA found, with 68% tipping based on level of service compared to 32% who tip no matter the quality of service. Fifty-three percent of consumers said they have tipped nothing because of unsatisfactory service.