Inflation might be turning Americans into grinches this holiday season, new data suggests.
In a survey of 1,000 consumers and 165 restaurant owners and operators across the U.S. this month, just 43% of consumers are now tipping their servers 20% or more, a significant decline from 56% of customers last year. That’s according to a recent survey from restaurant technology company Popmenu, first reported by MarketWatch.
A separate survey from PlayUS, an online gambling site, polled 1,006 people and found 17% of Americans are tipping less because of rising costs, while 60% of Americans said they wanted to ditch tipping altogether,
Restaurant owners across the Big Apple say the penny pinching is real.
“Everyone’s afraid to spend money in this bad economy,” Sam Muscovic, owner of the Upper East Side’s new American tapas restaurant Sojourn Social, told The Post. “A lot of people are tipping 15% now.”
Pre-pandemic, Muscovic automatically added 20% gratuity to the bill for parties of six or more, but in the last few months because of inflation, he said he lowered it to 18% and increased the price of menu items by $1.
“We had no choice, otherwise, we cannot meet obligations and pay salaries and rent,” he said.
Stathis Antonakopoulos, owner and chef at Carnegie Diner & Cafe in Midtown, has also noticed gratuities shrinking. The average eater tips are hovering around 16% — 3 percentage points lower than pre-pandemic, when he said customers typically tipped 19%.
Like many restaurants, Antonakopoulos’s eatery used to suggest and calculate tip amounts of 15, 18 and 20% on the bill. In October, they raised the suggested numbers to 18, 20 and 22%, to encourage higher tipping. But, many are still opting for under 18%, Antonakopoulos said.
Matt Schulz, chief credit analyst at Lending Tree, an online loan marketplace, said that inflation has made it harder for Americans to give liberally.
“Rising prices have shrunk Americans’ financial margin for error to basically zero. When that happens, people need to cut back expenses to help make ends meet, and one of the easiest ways to do that is by tipping less,” Schulz said.
But, he noted that being a lousy tipper has moral implications.
“A couple bucks here and there may not make too much difference in our own lives, but for men and women who rely on tips to survive, it is a really, really big deal when people tip less,” he said.
And when it comes to eating out at restaurants, if you can’t afford to tip 20%, he believes that you shouldn’t be dining out to begin with.
“I understand people’s reluctance to tip when you’re just grabbing a coffee or picking up takeout, but chances are that 20% isn’t going to make a difference in your life.”
With the holidays nearly here and service workers relying on their annual tips, Schulz said cash-strapped Americans should prioritize those they have long-standing relationships with — whether it’s your building staff, a barista or a hairdresser.
“We all know times are tough, so it may be necessary to budget,” he said. And, “even if we can’t give as much as we sometimes do, it is still important to do something to show your appreciation.”