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Americans are tipping less than they have in years

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.

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Americans are tipping less than they have in years

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WSJ: Americans Are Tipping Less Than They Have in Years

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267 comments
  • Worker advocacy groups are pushing to eliminate the tipped-wage system, while the restaurant industry warns these shifts hurt business and employees.

    Imagine having to pay a living wage, burger prices would explode!

    Except, for example, there is a 12.82€ minimum wage in Germany and a hamburger ist still around 2€ at Burger King (about 1:1 in $ atm). Food and work safety are stricter too iirc. Workers also have 20 days of vacation minimum (if your work full-time), 60h weeks maximum @ 40h on average, as well as extra pay for night, weekend and holiday shifts. And health insurance is about 200 a month at that income I think.

    Edit: Oh, and of course still 5-20% tipps.

    You are getting screwed over completely. Anyone who claims otherwise is your enemy.

  • I used to love ordering pizza for delivery, and I'd give like 5-10 bucks as a tip which might be 30 or 50% just depending. But now nobody does their own delivery anymore, I pay extra for the food because they're outsourcing to Door Dash, and it takes two hours to get a pizza.

    Delivery is dead as far as I can tell. All that's left is going through the fast food drive-through which is like 12-15 bucks nowadays. I'd rather just eat at home.

    The only time I go out nowadays is when I'm with a friend.

    • I pay extra for the food because they're outsourcing to Door Dash, and it takes two hours to get a pizza.

      It takes 2 hours because they're sending a bid to drivers for your delivery contract, which may also include someone else's delivery on the same route, for a base pay of $2 plus your tip. After enough drivers decline that, they add 25 cents and send it around again. This process repeats until someone (hopefully) eventually accepts it. And – whoops – the merchant''s contract with DoorDash requires the driver to have a pizza bag. So the bid only even gets seen by the subset of drivers who do.

      That's $2, plus your tip. And that's if the merchant was nice enough to actually pass that tip along when they outsourced the delivery. They aren't contractually required to do so, and some don't.

      As an unpaid independent contractor, if I can see it's an outsourced order (placed through the merchant instead of through the delivery marketplace), I won't even accept it, because it's also going to mean losing 10-20 minutes of unpaid time standing around waiting for the merchant (who sent out the contract way too early) to actually start making your pizza, that they already lied about being ready when they sent a notification to you and to me. It's nearly always a disaster.

      Edit to add: Just order from Domino's, they do everything in-house.

  • Wasn't trump talking about making tips tax-free? It's only going to make the problem a lot worse. Maybe the problem getting so bad will reach a breaking point and we're seeing some of the effects of this aggressive push to shove tipping everywhere now.

  • What are we supposed to tip with? Shit is so expensive it's tough to afford eating out at all and when we do go out, we pay more for less and it's often made poorly compared to what it once was.

  • American tipping culture is so pervasive, anerican POS software companies don't even bother localising POS systems to remove the tipping step.

    Like, why is this button here, practically no one is ever going to use it.

    If we leave a tip, it's in a tip-jar almost without exception, in cash. It's where you put your poop change or a couple of gold coins ($1 or $2)

    (Australia)

    Grumble

  • Here's the tip reform I want:
    Every restaurant/bar/etc with their staff decides on a default gratuity that represents their service standards/aspirations.

    Menu prices must include this gratuity. (And include taxes - why not.)

    At time of payment, the customer can choose how much they want to tip: the default, or some amount more or less.

    Transparent prices. No unwritten rules. Bar staff still make $$. And no disadvantage to restaurants who pay a higher hourly wage instead of tips.

  • That's funny, wife and I haven't even tipped at all in years

    Wait, no, I lie, I did tip the lady who went above and beyond this one time to make sure my meal went super smooth

    ETA: lol, knew I'd get downvoted by butthurt idiots who don't know shit. I live in one of the states with full minimum wage for the tipped roles (5 bucks more if it's fast food) so why the fuck should I tip anyone if they're making the same as anyone else at the bottom of the ladder?

    Buncha fools

267 comments