- cross-posted to:
- [email protected]
- cross-posted to:
- [email protected]
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 grew up waiting tables in the late 90’s - early 00’s. The state I was in had a mandatory 8% tax claim on total sales for the day. So if you did $2000 in food / liquor sales, you had to claim $160 in additional, taxable wages within the time keeping system at the end of your shift. We also received a base wage that was equivalent to the state minimum wage at the time.
Based on my experiences working everywhere from small chaim restaraunts in mill towns to hipster bars in metropolitan areas, that 5-10% was pretty accurate.
However, there were usually one or two anomalies every shift that meant you’d clear an overall net closer to 20% for the day.
The smart ones budgeted around a 0% take home and treated their tips as a supplement, the rest of us lived together so rent was cheap enough we could still waste our money on drinking and partying after shift.