Three Myths Around Restaurant Tipping Culture in America — The Rail

Three Myths Around Tipping Culture in America

By Jane Slade, Contributor 

Most of us are used to customers leaving a bit of extra cash on the table as a compliment for a job well done. Whether they want to express their appreciation for a good meal or hope to contribute a little added bonus to their server’s usual wage, tips are always greatly appreciated by waiting staff and restaurant managers alike.  

However, the etiquette for tipping practice varies all around the world, and even state-to-state in America. It’s often controversial – should we always expect tips, even if the service hasn’t been up to scratch? Is 10% enough, or should we expect more from a big group of guests?  

There’s no solid answer. But with rising awareness of just how hard waiting staff, chefs, and managers have to work to make a restaurant a success, diners may feel obliged to leave a tip – it might just not be what you expect. In this post, we debunk three tipping myths.

Tipping Myth #1: Everyone Tips at Sit-down Restaurants

You might be forgiven for thinking that the one place diners are guaranteed to tip is at a sit-down restaurant. It goes with the occasion; going out for a nice meal is a special event for many people, and tipping is an expected part of this.  

However, research shows that tipping servers at sit-down restaurants is actually declining. Research shows 75% of customers tipped in 2021; 73% in 2022; and 65% in 2023. With the cost-of-living crisis hitting all demographics, it’s perhaps not surprising that patrons are holding on to their extra cash, but it does demonstrate an impactful shift in tipping culture.  

Younger generations, such as Gen Z, may also feel that tips should be reserved for good service, rather than tipping as default like previous generations. Restaurant operators will need to tackle this problem head on or risk losing more of their wait staff.

Tipping Myth #2: Guests Should Tip 10%

How much should you be receiving in tips? Most diners believe it should be a specific percentage of the overall cost of the meal – this way, it’s a fair amount, based on the total they spend. In theory, bigger parties will spend more and take up more of their server’s time, so the tip will reflect that. Historically, the typical percentage has tended to sit at 10%, with a higher rate given for outstanding service. 

Fortunately for servers who have seen the number of tips decreasing, the percentage of money left as a bonus has gone up, now sitting around 15-20%. The average customer tips around 21% based on a personal income of $50,000 to $79,999.  

These statistics show what the average American customer is doing, but that doesn’t mean you can’t expect above or below this percentage based on the customer’s preferences. 

Tipping Myth #3: Tipping has Gone Down Since the Pandemic

The COVID-19 pandemic completely changed the world as we know it, and many people didn’t go out to eat at a restaurant for several years after it first broke out, breaking the cycle of expectation when it comes to tipping. Plus, much of the population found themselves with less disposable income, or were worried about their jobs, meaning they tried to minimize spending. All of this would indicate that tipping would be down since the pandemic – but actually, the opposite is true.  

Data shows that 32% of consumers are tipping more than before the pandemic, perhaps in part thanks to increasing awareness around worker responsibilities, or just gratitude that we’re all free to go out and enjoy our favorite restaurants once again. Either way, this is good news for your wait staff.

Show Your Appreciation to Your Guests

There you have it – tipping is still firmly part of American culture, as well as being a common practice in many other parts of the world. Remember that a customer will tip the amount that they’re comfortable with, and even if they can’t afford to leave a generous bit of extra money on the table, be sure to thank them for choosing your restaurant. 


About the Author
Jane is a lifelong foodie and journalist who loves to explore new restaurants and see what the latest trends are. Her favorite foods are lasagne and honeycomb ice cream (not together). 


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