Despite inflation, tips are still flowing

Are consumers getting more generous or is “iPad tipping” to blame?

According to data from Toast, “Hoosier hospitality” is legit.

Despite inflation, tips are still flowing

Over the last two quarters, Indiana led the nation with the highest-average tip rate, while California had the lowest.

Toast’s Q2 data also found:

  • Full-service restaurants received an average tip of 19.6% compared to 16.9% for quick-service restaurants (AKA fast food).
  • Tips rose 10% YoY, compared to 7.6% for food costs.

In other words, tips are outpacing inflation — which means consumers are either getting very generous…

… Or there’s another explanation

Point-of-sale (POS) platforms like Toast have ushered the rise of “iPad tipping,” leading many to tip when they normally wouldn’t to avoid looking stingy in front of the cashier. Here’s one hilarious reenactment.

But do fast-food and coffee-shop workers even expect a tip?

  • One former yogurt shop worker said flipping the iPad to ask for a tip was actually embarrassing her and her colleagues.

The bottom line — just tip whatever you want to tip.

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