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The Tipping Problem: 43% of U.S. Consumers Want to Eliminate Tipping Altogether – Image Credit Unsplash+
- Regardless of industry, 43% of consumers want to eliminate tipping altogether
- The number of consumers tipping restaurant staff 20% or more continues to decline as the number of those tipping 10% or less climbs
Tighter household budgets paired with tipping fatigue is causing U.S. consumers to pull back on gratuities for restaurant staff and wish for a general departure from tipping. This is according to a nationwide study of 1,000 U.S. consumers by Popmenu.
The majority (60%) of consumers say they are fed up with being asked to tip for different services at various establishments, up from 53% last year. Around the same percentage (61%) feel pressure to tip. When consumers were asked how many times they tipped for different services when they didn’t think it was warranted, the average was 40 times.
Restaurant Tipping Trends
After rallying around restaurants during the pandemic, budget-conscious consumers have reduced gratuities in recent years:
- In 2024, 38% of consumers say they tip restaurant servers 20% or more. This is down from 42% of consumers last year and 56% in 2021.
- In 2024, 19% of consumers say they tip restaurant delivery drivers 20% or more. This is down from 26% of consumers last year and 38% in 2021.
- The number of consumers tipping restaurant staff 10% or less jumped ten percentage points over last year:
- 30% of consumers tip restaurant servers 10% or less, up from 19% of consumers last year.
- 42% of consumers tip restaurant delivery drivers 10% or less, up from 32% of consumers last year.
Most consumers (61%) are willing to pay more for restaurant meals to facilitate higher wages for staff and eliminate tipping.
Tips for Restaurant Servers Over the Last 3 Years
|
Year
|
% tipping restaurant servers 10% or less
|
% tipping restaurant servers 15%
|
% tipping restaurant servers 20% or more
|
% who don’t typically tip restaurant servers
|
|
2024
|
30 %
|
30 %
|
38 %
|
3 %
|
|
2023
|
19 %
|
37 %
|
42 %
|
2 %
|
|
2022
|
19 %
|
37 %
|
43 %
|
1 %
|
Tips for Restaurant Delivery Drivers Over the Last 3 Years
|
Year
|
% tipping restaurant delivery drivers 10% or less
|
% tipping restaurant delivery drivers 15%
|
% tipping restaurant delivery drivers 20% or more
|
% who don’t typically tip restaurant delivery drivers
|
|
2024
|
42 %
|
28 %
|
19 %
|
11 %
|
|
2023
|
32 %
|
32 %
|
26 %
|
10 %
|
|
2022
|
27 %
|
36 %
|
32 %
|
5 %
|
“The continued squeeze on consumer bank accounts is impacting restaurants and other industries that are heavily reliant on tips,” said Brendan Sweeney, CEO and Co-founder of Popmenu. “Not only are they dealing with heightened competition for guests, they have to work even harder for the tips that account for the majority of their income.”
*Totals in charts may not equal 100% due to rounding.
Survey MethodologyPopmenu conducted an anonymous, nationwide study of 1,000 U.S. consumers, ages 18 and older, from September 6 to September 7, 2024.
