Inflation in the U.S. has continued to rise this year, stressing many Americans’ finances. However, people who dine out have become even more generous to restaurant staff than usual, according to two recent studies.
Both studies were conducted by companies that provide point-of-service technology to restaurants: Lightspeed Commerce and Spot On. This technology allows restaurant employees to put in orders and apply tips to transactions.
According to Lightspeed Commerce data from 6,000 fast casual bars and restaurants from May of last year to this May cited by Restaurant Dive, tips have increased along with inflation.
In the U.S., diners are typically expected to tip their servers 20%. Per data from Lightspeed, the median average tip in May 2022 was 18.2%, while upscale restaurants with larger checks averaged over 32%.
“Diners may prefer to spend their money on hospitality and experience instead of digital fees,” said Restaurant Dive. “Dine-in tipping is also a way to directly support restaurants and essential workers who have faced workplace COVID-19 exposure throughout the past two years.”
A study from SpotOn on the impact of inflation on restaurants cited last month by FSR Magazine also found that “despite economic factors increasing the prices of orders,” Americans are tipping more.
U.S. Bureau of Labor Statistics data shows that the Consumer Price Index increased by 1% in May and by another 1.3% in June. Over the last 12 months, the CPI has increased by 9.1% without seasonal adjustment after already hitting 40-year highs, the Bureau said this week.
From October 2021 to this April, the average price of a restaurant bill increased by 7%, according to the SpotOn data. At the same time, the average tip increased by 9%.
Inflation may appear to be on a never-ending tear, but President Joe Biden offered a different perspective Wednesday.
“While today’s headline inflation reading is unacceptably high, it is also out-of-date,” he said of the bureau’s report. “Energy alone comprised nearly half of the monthly increase in inflation. Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices, that have reduced the price at the pump by about 40 cents since mid-June. Those savings are providing important breathing room for American families. And, other commodities like wheat have fallen sharply since this report.”
Substantial tips could help restaurant professionals make it through the inflation wave and deal with COVID-19 related emergencies they are vulnerable to at their jobs. If people continue to tip generously, it could also help restaurants retain workers in a tight labor market, said Restaurant Dive.
Related
Related
