If you think the option of tipping has spread beyond the usual sitdown restaurant and hair salon, you’re not imagining it, as a new report has found 48% of restaurants considered to be quick-service, like Panera, McDonald’s and more, now give customers the option to tip.
The data comes from the restaurant management software company Toast which noted that 48% is up from 38% in 2020.
However, the data from Toast shows that despite the option to tip becoming more available for consumers, they are tipping less, partly due to current economic pressure.
The report found that the average tip at quick-service restaurants last quarter was 15.9%, down 16.4% from last year. Experts point to inflation as a leading reason for the decrease in tipping, but other reports show the trend has continued downward over the last half-decade.
This coincides with a poll from last year that found the COVID-19 pandemic caused Americans to tip less frequently for specific services.
A poll from CreditCards.com conducted in 2022 looked at tipping patterns before and after the pandemic. It found that the percentage of people who “always tip” at coffee shops was 22% in 2022, down 2% from 2019. For those picking up takeout food in 2022, 13% said they always tip, compared to 17% in 2021 — the pollers did not ask the question in 2019.
Experts with Toast shared that while inflation and the economy have played a part in tipping patterns, the number of places given the option to tip has also become overwhelming. They shared that people have been found to be less generous despite it being easier than ever to tip.
The report from Toast points to the radically changing landscape of tipping, which has been completely reinvented by technology.
While there may still be establishments boasting a tip jar next to their registers, customers are now more likely to be faced with a tablet screen asking them to tip their barista or cashier digitally and in a more upfront manner than the jar.
The report also examined the most generous states in the country, finding that Delaware was the top state for tipping, given an average of 21.8%. Following Delaware are Indiana and Wyoming at 20.8% each, Kentucky at 20.7%, and West Virginia at 20.6%.
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