NEW YORK (XINHUA) – People in the United States (US) are tipping less at restaurants than they have in at least six years, driven by fatigue over rising prices and growing prompts for tips at places where gratuities haven’t historically been expected.
The average tip at full-service restaurants dropped to 19.3 per cent for the three months that ended September 30, 2024 and hasn’t budged much since, according to Toast, which operates restaurant payment systems. The decline highlights a bind restaurants find themselves in, as they face rising costs of ingredients and labour amid customer frustration over spiralling bills.
Tipping at US sit-down restaurants in the past six years peaked at 19.9 per cent in early 2021, when Americans were likely to express gratitude as COVID-19 lockdowns eased.
“People have become increasingly grumpy about dining out. Many have recoiled at menu prices that have risen sharply in recent years, and are going out less and ordering less when they do. Some restaurants have added mandatory gratuities and service fees to bills, driving up bills and resulting in some diners tipping less,” reported The Wall Street Journal on Thursday about the finding.
