As inflation affects consumer spending, many Americans are tipping less, prompting servers to innovate in tip-earning strategies. Workers like Maddy Joss utilize free offerings to enhance customer connections, seeking larger gratuities. Recent data indicates a decline in average tips at restaurants. While some servers notice reduced dining frequency, many rely on tips to supplement low hourly wages, with a growing sentiment that the tipping culture is becoming excessive. Tipped employees find themselves navigating challenging economic conditions to maintain their earnings.
When Maddy Joss gets a table of patrons, she typically asks if they're celebrating anything. If they are, she often offers "freebies," which could boost her chances of earning a big tip.
Data shared with Business Insider by the point-of-sale platform Toast - drawn from more than a billion transactions at roughly 134,000 restaurants - showed that the average tip at full-service restaurants fell to 19.3% by the end of last year from 19.9% in early 2021.
Overall, 35% of Americans said that tipping culture was out of control last year, up from 30% in 2023, per Bankrate.
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