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.
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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.