Recent data indicates a significant decrease in tipping amounts left by American restaurant-goers, attributed to 'tipping fatigue' and rising inflation.
The practice of tipping in the United States has undergone a notable shift in recent years, with the average amount left by diners at restaurants declining. According to Toast data, the national tipping average for restaurants in the third quarter of 2024 settled at 18.8%, a figure that remained consistent with the previous quarter but marked a decrease from 19% in the same period of 2022 and 19.2% in 2021. For full-service restaurants specifically, the average tipping rate dipped to 19.
3% in the third quarter of 2024, falling short of the 19.6% recorded in 2022's third quarter and the 19.8% observed the year before. This downward trend extends to quick-service restaurants as well, where the tipping percentage hovered at 15.9% in the third quarter of 2024, down from 16.1% in the previous two years and 16.5% in 2021's third quarter.Toast data reveals that tipping rates for both types of restaurants in 2024's third quarter also lagged behind those observed in the pre-COVID years of 2018 and 2019. Experts attribute these declines in average restaurant tipping rates to a phenomenon dubbed 'tipping fatigue.' Consumers, while acknowledging the value of good service and willing to reward it, express discomfort with the constant expectation and pressure to tip, particularly in the context of automated systems that prominently display tipping prompts. This 'tipping culture fatigue' is further exacerbated by inflation, which has put a strain on household budgets, and by the increasing prevalence of tipping requests in unconventional settings, facilitated by technology and app-based transactions
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