As menu prices continue to increase and tipping expectations become more common in industries where they were previously not expected, individuals may be less inclined to reach for their wallets for an additional tip.
According to the Wall Street Journal, there has been a decrease in tipping at restaurants for the past six years.
According to Jenni Emmons, a server at a high-end establishment in Chicago, the tipping culture in the U.S. is shifting. She believes that individuals are feeling obligated to tip for services that were not previously expected, causing her earnings to be jeopardized.
According to data from Toast, a company that provides restaurant payment systems, full-service dining establishments experienced a 19.3% decline in tips on average for the quarter ending Sept. 30, as reported by the Wall Street Journal.
Washington, D.C. doctor John Reilly expressed frustration with the increasing menu prices, stating that he is approaching his breaking point.
According to Reilly, who considers himself a generous tipper, the struggling restaurant scene in D.C. is greatly influenced by pricing.
"Restaurants have not been doing well here in D.C., and price definitely has much to do with it," Reilly, who said he sees himself as a generous tipper, told the outlet.
In the last six years, tipping at dine-in establishments reached its highest point of 19.9% in early 2021. This increase coincided with the reopening of restaurants after pandemic restrictions and reflected the customers' contentment in expressing their appreciation.
According to a survey conducted by restaurant technology company Popmenu, approximately 38% of Americans tipped their servers at least 20% in 2024.
However, in contrast to 2021, a reduced proportion of diners (46%) mentioned considering their budgets.
The clients are simply not pleased.
With the increase in menu prices, dining out has become less feasible for many individuals. This has led to a decrease in food orders at restaurants. In response, some eateries have implemented mandatory tips and service fees, ultimately driving up the total cost of a meal and potentially discouraging patrons from tipping.