Summary
Tipping in U.S. restaurants has dropped to 19.3%, the lowest in six years, driven by frustration over rising menu prices and increased prompts for tips in non-traditional settings.
Only 38% of consumers tipped 20% or more in 2024, down from 56% in 2021, reflecting tighter budgets.
Diners are cutting back on outings, spending less, and tipping less. Some restaurants are adding service fees, further reducing tips.
Worker advocacy groups are pushing to eliminate the tipped-wage system, while the restaurant industry warns these shifts hurt business and employees.
Key cities like D.C. and Chicago are phasing in higher minimum wages for tipped workers.
Well, yes. But actually no. The difference between the actual value of the work and what is paid by the employer is retained by the employer. I assert that is wage theft by itself. A law increasing the federal minimum wage to living standards across the board, accounting for inflation and cola in different areas, would address both of those problems. It would account for both the types of wage theft I have already identified, and a few others, but Many more would remain unaddressed. Ultimately “wages getting stolen” is itself Many different issues.
In my opinion.