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.
