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.
Well, I mean, are you going to continue to go out and hand them all that money? Then they’ll continue to feel like they can safely raise prices. If you start making burgers at home and buying beer at the local liquor store, you’ll be paying a small fraction of what you paid even in 2016. If you need some social interaction, just make it a cookout and invite people. I’m sure they’ll be happy to have you at their place in return.