Economic Volatility in 2025 Leads to Declining Tipping Rates in Restaurants
By
armdave
Sesame, salt, and substance. A flagship bake.
Summary
The article discusses the impact of economic volatility in 2025 on the restaurant industry, as evidenced by declining tipping percentages across various dining establishments. Data from Square shows a drop in average tips from Q1 to Q2 2025, correlating with falling consumer confidence. Bars, cafés, quick-service, and full-service restaurants all experienced declines in tipping rates.
Key quotes
· 3 pulledIn Q1 2025, Square found that the average tip on food and beverage transactions was 15.17%, and this continued to fall into Q2 with the average tip coming in at 14.99%, aligned to dropping consumer confidence in the economy.
Bars regularly receive the highest tips; in Q1 their average tip was 17.36% on each transaction, though this too fell to 16.96% in Q2.
Cafés and quick-service restaurants received 14.72% and 14.64% in Q1, respectively, and dropped to 14.57% and 14.2% in Q2.
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