Summary
Tipping in U.S. restaurants has dropped to 19.3%, the lowest in six years, driven by frustration over rising menu prices and increased prompts for tips in non-traditional settings.
Only 38% of consumers tipped 20% or more in 2024, down from 56% in 2021, reflecting tighter budgets.
Diners are cutting back on outings, spending less, and tipping less. Some restaurants are adding service fees, further reducing tips.
Worker advocacy groups are pushing to eliminate the tipped-wage system, while the restaurant industry warns these shifts hurt business and employees.
Key cities like D.C. and Chicago are phasing in higher minimum wages for tipped workers.
Depends on the state, too. In Washington wait staff get full minimum wage, which is the highest in the country.
So I feel a lot less bad leaving a smaller tip in Washington because they’re being paid the same as everyone else, not artificially paid less with “tips supposed to make up the difference.”
Also, semi-related: Olympia, Washington was one of UberEats best-tipping cities in 2023.
https://www.uber.com/newsroom/2023-uber-eats-cravings-report/
So a city with the highest minimum wage in the country is also one of the cities that tips the best. Interesting.
To be fair, I don’t think Uber Eats is paying minimum wage hourly anywhere