The Blubber

American diners are tipping less than they did in recent years, according to new data.

Nationwide, the average tip at restaurants was 18.8% during the third quarter of 2024, according to data from Toast, which tracks tipping trends at restaurants using its systems. While that figure held steady compared to the previous quarter, it has dipped from 19% in the third quarter of 2022 and 19.2% in the same period in 2021.

At full-service restaurants, the average tip rate dropped to 19.3% in the third quarter of 2024, down from 19.6% in 2022 and 19.8% in 2021.

For quick-service restaurants, the decline was also evident, with the average tip at 15.9% in 2024, compared to 16.1% in 2022 and 16.5% in 2021. Tipping rates for both full-service and quick-service restaurants were lower in 2024 than they were in pre-pandemic years like 2018 and 2019.

The Rise of "Tipping Fatigue"

Experts point to “tipping fatigue” as a key reason behind the declining averages.

"Consumers have reached something called 'tipping fatigue,'" said Ted Jenkin, co-founder of oXYGen Financial, in an interview with FOX Business. "Americans want to reward good service, but they’re frustrated by the pressure of automated systems that prompt tipping amounts while someone watches them make their choice."

Ted Rossman, a senior industry analyst at Bankrate, has observed a "noticeable downturn" in tipping frequency.

In a June 2024 Bankrate survey, 67% of U.S. adults who dined at sit-down restaurants reported always leaving a tip for their servers, down 8 percentage points from three years ago.

Beyond Restaurants

The tipping decline isn’t limited to the restaurant industry. According to the Bankrate survey, the share of Americans who always tip service workers like hairstylists, food delivery drivers, and baristas has also decreased between 2021 and 2024.

This trend could reflect broader changes in consumer behavior and attitudes toward tipping in the post-pandemic era.