HONOLULU (KHON2) — Despite rising food costs, inflation and labor constraints, restaurants are seeing a strong demand in customers tipping more, according to a recent study by software provider Toast Inc.
The company’s Q2 Restaurant Trends Report showed that tips are up nearly 10% compared to last year. Average tip size didn’t vary significantly, but some states were more generous than others.
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Even with inflation, consumers generally tipped well, paying an average tip of 16.9% at quick-service restaurants and 19.6% at full-service restaurants. However, those who got delivery or takeout were less likely to tip as much, tipping an average of 14.5%.
According to data from applicable restaurants on the Toast platform where a tip was added to the order via a credit card or digital payment, these are the Top 10 states with the most and least generous tippers.
TOP 10 STATES WITH MOST GENEROUS TIPPERS
#1 Indiana: Avg. tip of 21%
#2 West Virginia: Avg. tip of 20.8%
#3 Ohio: Avg. tip of 20.7%
#4 Delaware: Avg. tip of 20.7%
#5 Kentucky: Avg. tip of 20.7%
#6 Wyoming: Avg. tip of 20.5%
#7 New Hampshire: Avg. tip of 20.4%
#8 Wisconsin: Avg. tip of 20.3%
#9 South Carolina: Avg. tip of 20.3%
#10 Pennsylvania: Avg. tip of 20.2%
TOP 10 STATES WITH LEAST GENEROUS TIPPERS
#1 California: Avg. tip of 17.5%
#2 Washington: Avg. tip of 18.3%
#3 Florida: Avg. tip of 18.5%
#4 New York: Avg. tip of 18.5%
#5 Hawaii: Avg. tip of 18.8%
#6 Texas: Avg. tip of 18.8%
#7 Nevada: Avg. tip of 18.8%
#8 Louisiana: Avg. tip of 18.9%
#9 New Jersey: Avg. tip of 18.9%
#10 Arkansas: Avg. tip of 18.9%
According to data from applicable restaurants on the Toast platform:
- Full-service and quick-service restaurants grew at a similar rate, up 18% and 17% respectively, in Q2 2022 compared to Q1 2022.
- Dining in-person grew nearly 22% in Q2 2022 compared to Q1 2022.
- Takeout and delivery grew about 6% in Q2 2022 compared to Q1 2022.
The Toast platform has approximately 68,000 locations in the U.S. as of June 30, 2022. To see the full Q2 2022 Restaurant Trends Report, click here.