- cross-posted to:
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- cross-posted to:
- [email protected]
- [email protected]
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.
Tipping culture and systems need to die off. Sadly, because they often get paid more via tips than they would by increased hourly wages, tipped employees are often against such reforms.
And, to be fair, for most restaurants, it would be really hard for them to pay their wait staff appropriate wages in many cities where rent is extremely high and the cost of the food products they use to create their meals is rising as well. It’s not a simple matter of “the employer should pay their employees’ wages, not the customer.” The industry is built around tipping, and that’s not something that can be changed overnight.
Still, I firmly believe it needs to happen. And if that means increasing the price of restaurant meals, so be it. I suspect people eat out too much these days anyway and should learn to cook themselves. I used to eat out a lot until I did some calculations and realized I was spending way too much on it. Since learning to cook, I’ve saved a lot of money and now prefer my own cooking to a lot of restaurant fare out there (although not the really good stuff—I’m no professional chef).
I don’t really agree that restaurants couldn’t make it work. It’s just going to have to take all or nothing.
Getting away from tipped wages is the real problem. Give all restaurant workers fair livable wages, they won’t be on tighter budgets on would spend more going out.
Workers can’t live paycheck to paycheck just for the profits to sit in some CEO or owners back account. The economy is heathy with an exchange of money. More money in the pockets of the people the more they will spend.
Of course it won’t work if one restaurant (or any single company) does it differently when everyone is still on tight budgets. You won’t get the business from your own employees but need others to have the means to come to you too.