TORONTO — Lightspeed Commerce Inc. has released new hospitality-industry data showing that tipping is on the rise when consumers dine out, with the highest tips occurring at bars and fine-dining restaurants. On the other hand, average takeout and delivery tips dropped to around eight per cent, suggesting consumers might be pulling back on tips outside of traditional service venues. The data is based on a sample of thousands of restaurants powered by Lightspeed across North America.
Key findings from the Lightspeed Restaurant data include:
- The median tip percentage increased by 2.3 per cent, from 16.93 per cent to 17.32 per cent;
- 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 three per cent more at bars (19.25 per cent) and fine-dining restaurants (19.9 per cent) than they do in casual restaurants (16.5 per cent);
- Tips for online orders and delivery dipped slightly, falling from 8.83 per cent to 8.07 per cent. Bars were hit hardest on takeout, with the median online and delivery tip falling from almost 10 per cent to 8.54 per cent.
- Despite the “tipflation” backlash, diners haven’t stopped tipping in fast-casual restaurants, though the median tip size is still hovering under nine per cent — well below the 17.32-per-cent average;
- People are dining out more frequently at both fine-dining and fast-casual restaurants, with the total number of transactions rising 3.6 per cent year-over-year at fine dining and 3.53 per cent at fast-casual restaurants.
“Now more than ever, hospitality businesses are turning to technology to help them drive additional revenue and change the guest experience for the better,” says Peter Dougherty, general manager of Hospitality at Lightspeed Commerce. “Our customers that have implemented embedded payments and automated tipping prompts often tell us they see a bump in average tip size. 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. For hospitality businesses navigating a rapidly changing market, that extra income in their employees’ pockets is crucial to retaining staff without cutting into their profit margins.”
