Inflation may be hurting server tips

tips

43% of consumers say they tip 20% or more at restaurants, according to a Popmenu survey. / Photography: Shutterstock

Inflation seems to be making restaurant patrons a little less generous.

Fewer diners are tipping 20% ​​now than they were at this time last year, according to a survey by technology provider Popmenu. But the holidays could bring some relief for the restaurant staff.

According to the survey of 1,000 US consumers conducted earlier this month, 43% said they usually tip 20% or more at restaurants, up from 56% who said the same last year.

During that period, consumers have had to start paying more for just about everything. In October, the consumer price index was 7.7% higher than last year, including a nearly 11% increase in food costs, according to the Bureau of Labor Statistics.

That pressure has shown up lately in restaurant traffic, as well as tipping.

“Tipping behavior can fluctuate depending on market conditions,” PopMenu CEO Brendan Sweeney said in a statement, “but the intent to support restaurants remains strong and tips, overall, are leaning towards higher percentages today.”

In fact, other recent research has suggested that the pandemic may have permanently raised the tip floor from 15% to close to 20%. A study published in August by Toast found that the average tip in the US was 19.7%, with only one state, California, averaging less than 18%.

And consumers told Popmenu that they’ll be opening their wallets a little more around the holidays. One-third said they plan to tip restaurant workers 25% or more over the next few months, and 61% said they expect to tip 20% or more.

The company also asked 165 restaurant owners for tips for dining during the busy holiday season. Tip #1, shared by 57% of respondents, was to tip generously when you can.

Half urged customers to be patient, reserve tables early and arrive on time. And 40% told consumers something that probably won’t surprise them: Expect to pay more.

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Source: news.google.com