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.
If you can’t make your business work without paying people below the minimum wage than you have a bad business.
In my city restaurants have just gotten more expensive. It’s also led to better conditions for staff and these places are more desirable to work at. It works. I don’t go out as much because I pay often $200-$300 instead of $80-$150 like I used to but so be it. Going out to eat is a luxury, we budget accordingly.