The reality is that in our post-pandemic world, guests are looking for a frictionless, cashless payment experience, and they're willing to tip more for exceptional dining experiences-especially when they have access to digital tools that make it easy. "Our customers that have implemented embedded payments and automated tipping prompts often tell us they see a bump in average tip size. "Now more than ever, hospitality businesses are turning to technology to help them drive additional revenue and change the guest experience for the better," notes Peter Dougherty, General Manager of Hospitality at Lightspeed Commerce.
Tipping on fast casual is going strong: In spite of the "tipflation" backlash, diners haven't stopped tipping in fast casual restaurants, though the median tip size is still hovering under 9%-well below the 17.32% average.In spite of earning the biggest in-house tips, bars were hit hardest on takeout, with the median online and delivery tip falling from almost 10% to 8.54%. Takeout tips are down: Tips for online orders and delivery dipped slightly, falling from 8.83% to 8.07%.Bars and fine dining take home the biggest tips: Overall, tipping trends are staying stable across business types year-over-year, with customers continuing to tip around 3% more at bars (19.25%) and fine dining restaurants (19.9%) than they do in casual restaurants (16.5%).Year-over-year, the median tip percentage increased by 2.3%, from 16.93% to 17.32%.
Tipping is on the rise: Good news for servers: diners aren't skimping on tips.
Key findings from the Lightspeed Restaurant data:
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