Inflation starting to eat away at tips for restaurant workers, consultant says

Tip jar at a sushi bar with copy space
Photo credit Getty Images

Izzy Kharasch, President of Hospitality Works in Chicago, told the WBBM Noon Business Hour that inflation is eating away at restaurant revenue in multiple ways, including lower tips for workers.

He added that diners are also trying to get around inflation by ordering less.

"They're sharing an appetizer, they're sharing an entree, they're sharing a dessert," Kharasch said.

Kharasch said tip amounts are trending down.

"A good tip average is somewhere between 20 and 22 percent," he said, adding that one restaurant was seeing a tip average of 17 percent.

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He believes diners are experiencing tip burnout because they are being asked for tips at places that didn't ask for tips before.

Restaurants are still having a hard time finding workers, and he also believes people may be registering their dissatisfaction with their wallets.

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