States with the most generous tippers despite inflation
Brian Breinberg, a Fox News contributor and economics professor at The King’s College, says record-high inflation is a fundamental ‘supply-side issue’, not a demand side.
Americans continue to make big suggestions at restaurants, even as the threat of high inflation looms large.
Despite the increase in the price of goods and services, the average same-store tip amount is about 10% compared to last year, according to overall restaurant sales data from software provider Toast’s second-quarter Restaurant Trends report.
In the second quarter, quick-service restaurants saw an average tip of 16.9% and full-service restaurants saw an average tip of 19.6%. In-person diners tipped an average of 19.7%, while those doing delivery or takeout tipped an average of 14.5%.
| anchor | Security | The last | Change | Change % |
|---|---|---|---|---|
| toast | Toast Inc. | 18.37 | -0.48 | -2.55% |
As of June 30, Toast had about 68,000 restaurant locations on its platform.
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The data shows that Indiana was the most generous state for tipping during the second quarter with an average tip of 21%, followed by West Virginia (20.8%) and Ohio, Delaware and Kentucky (20.7% each).
Californians were the least generous tippers, paying an average of 17.5%, despite having one of the highest minimum cash wage laws for tipped workers in the country. Other states with less generous tipping included Washington (18.3%), Florida and New York (18.5% each), and Hawaii, Texas and Nevada (18.8% each).
Despite the increase in the price of goods and services, the average same-store tip amount is about 10% over the past year, according to overall restaurant sales data from software provider Toast. (iStock / iStock)
Earlier this month, the Labor Department reported consumer prices increased 8.5% year over year In July, slightly cooler but still near the highest level in 40 years. According to the Bureau of Labor Statistics, the cost of meals away from home rose 7.6% year over year in July.
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Full-service restaurant sales reached pre-pandemic levels during the quarter, with gross merchandise volume up 18% on a same-store basis compared to the same period a year ago. Quick-service restaurant sales have nearly returned to pre-pandemic levels, with same-store sales during the quarter compared to a year ago.
On-premises dining sales grew approximately 22% during the quarter compared to a year ago, while takeout and delivery grew approximately 6% year over year.
Chinese food saw the biggest year-on-year sales growth of 23% during the second quarter, followed by Thai and European food with 15% growth. (bake)
Chinese food saw the biggest year-over-year sales growth of 23% during the second quarter, followed by Thai and European food with 15% growth. Coffee sales climbed 14%, while breakfast, bakery and Japanese food sales rose 12% year-over-year. Italian food joined the top-performing cuisine during the second quarter, with an 11% year-over-year increase.
The Seattle, Boston and New York City metro areas tied for the best-performing metro areas during the quarter, with year-over-year sales growth of 24%. San Francisco and Washington, DC rounded out the top five with same-store sales growth of 20% year over year.
