American dining habits are evolving, and one significant change is the reduction in tip percentages left by customers at restaurants. According to recent data from Toast, a platform used by many U.S. eateries, the average tip rate for restaurants stood at 18.8% in the third quarter of 2024. This figure has seen a steady decline from previous years, dropping from 19% in the same period of 2022 and 19.2% in 2021. For full-service establishments, the tipping rate was slightly higher at 19.3%, but this too represents a decrease compared to earlier years.

The trend extends beyond sit-down dining to quick-service restaurants as well. In the third quarter of 2024, the average tip rate here was 15.9%, down from 16.1% and 16.5% in the corresponding quarters of the past two years. The decline in tipping rates can be attributed to various factors, including what experts term "tipping fatigue." Ted Jenkin, co-founder of oXYGen Financial, noted that consumers feel pressured by automated systems that prompt them to enter tips, leading to a cultural shift where people prefer to tip less. Bankrate senior industry analyst Ted Rossman also observed a noticeable downturn in tipping frequency over recent years, citing inflation and increased tipping expectations as contributing factors.

This phenomenon is not limited to restaurants. A Bankrate survey revealed that fewer Americans are tipping consistently across multiple service sectors, including hairstylists, baristas, and rideshare drivers. Inflation has put pressure on consumer wallets, leading to a broader dissatisfaction with tipping culture. Many individuals find the practice intrusive, especially when technology makes it harder to avoid tipping. The pandemic initially sparked a wave of appreciation for service workers, but this has since evolved into a more complex relationship with tipping practices. Businesses, wary of raising prices, have turned to non-optional gratuities and service fees, which may further reduce voluntary tipping.

Despite these challenges, it's important to recognize the value of fair compensation for service workers. As tipping norms continue to evolve, fostering a culture of respect and understanding can help ensure that workers receive appropriate recognition for their efforts. Encouraging open dialogue between customers and service providers can lead to more sustainable and equitable tipping practices, ultimately benefiting both parties.