As consumer confidence dips, so does tipping
In Q1 2025, Square found that the average tip on food and beverage transactions was 15.17%, and this continued to fall into Q2 with the average tip coming in at 14.99%, aligned to dropping consumer confidence in the economy.
Bars regularly receive the highest tips; in Q1 their average tip was 17.36% on each transaction, though this too fell to 16.96% in Q2. Cafés and quick-service restaurants received 14.72% and 14.64% in Q1, respectively, and dropped to 14.57% and 14.2% in Q2. Tips at full-service restaurants also declined from 14.76% in Q1 to 14.64% in Q2.
“As previous Square research has underlined, tips make up a major part of workers’ wages – the average restaurant employee earned nearly 23% of their income in tips in 2024,” said Ming-Tai Huh, Head of Food and Beverage at Square. “As consumer confidence in the economy shifts and tips fall, workers are taking home less which could lead to a return to labor uncertainties for the industry – adding to the crunch local restaurants are continuing to feel.”