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.
I don’t really agree that restaurants couldn’t make it work. It’s just going to have to take all or nothing.
Getting away from tipped wages is the real problem. Give all restaurant workers fair livable wages, they won’t be on tighter budgets on would spend more going out.
Workers can’t live paycheck to paycheck just for the profits to sit in some CEO or owners back account. The economy is heathy with an exchange of money. More money in the pockets of the people the more they will spend.
Of course it won’t work if one restaurant (or any single company) does it differently when everyone is still on tight budgets. You won’t get the business from your own employees but need others to have the means to come to you too.