Troubling Trend for Restaurant Staff: America's Tipping Culture is Fading

 


A fresh study from Toast, a leading provider of restaurant management software, reveals that tipping rates have hit a seven-year low, posing challenges for service workers across the nation. In an effort to understand consumer behaviors, Toast examined dining patterns to uncover insights into where people eat out most frequently, current tipping norms, and regional food preferences. Here's a breakdown of the key findings: Positive Signs: Seasonal Uptick in Dining The analysis indicates modest increases in restaurant activity, particularly in coastal areas during the warmer months, though outcomes vary widely by location. Cities like Naples, Florida; Portland, Maine; Chicago, Illinois; and Charleston, South Carolina stand out for experiencing the most significant surges in patronage. Concerning Developments: Decline in Tipping According to the data, the typical tip at full-service establishments has dropped to 19.1%, marking the lowest figure Toast has tracked over the past seven years. This represents a dip from the 19.4% average recorded in the first quarter of 2025. While this could partly reflect a shift toward cash gratuities (which Toast's card-based system doesn't capture), it may also stem from "tipflation"—the growing practice of non-hospitality businesses soliciting tips, potentially leading to consumer fatigue. Delaware leads with the highest tipping average at 21.4%, whereas California trails at just 17.3%. On the menu front, coastal regions show a strong affinity for burgers, with Hawaii boasting 72% more burger orders per restaurant than the national benchmark, alongside 59% more fries. Alaska and Washington follow closely, with 64% and 52% above-average burger consumption, respectively. Not surprisingly, seafood reigns supreme in these areas too: Rhode Island sees 164% more seafood orders, Louisiana 154%, and Delaware 128%. In broader terms, transactions grew in 24 states compared to the prior year, stayed steady in 13, and decreased in 14. For those areas facing downturns, there's optimism—many are popular winter destinations likely to rebound as temperatures drop. Toast derived these insights by analyzing year-over-year transaction data from June 1 to July 15, 2025, focusing on identical restaurants and matching days of the week.

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