November 14, 2024
CT ranks 3rd lowest state for restaurant tipping, report finds
Pixabay | pixabay.com/photos/cafe-tables-and-chairs-bistro-5579069/
An empty table at a restaurant.
A new report ranks Connecticut among the stingiest states in the country for restaurant tipping.
As of Sept. 20, the Nutmeg State had the third-lowest average tipping rate in the United States – 14.75% – according to the Quarterly Restaurant Report, released by business technology company Square on Wednesday.
The other two states with the least-generous tipping habits were California and Hawaii, which averaged 14% and 14.17%, respectively.
Nationally, in 2024, the average tip on a restaurant transaction was 15.4%, down slightly from 15.5% in 2023.
Two states had average tips above 17% – Virginia at 17.16% and Iowa at 17% even. Close behind were Delaware (16.77%) and California (14%).
Meantime, the report found that average wages for full-service restaurant workers have grown 73.9% compared to 60.2% for quick-service restaurants since 2017.
“The cost of labor is growing faster than revenues in some segments, compressing margins in an already tight sector. This trend will likely continue,” said Ara Kharazian, principal developer of Square Payroll Index. “Restaurants are hesitant to raise prices on consumers, but we remain in a pretty hot labor market so wage increases will have to come from somewhere if restaurants want to remain competitive.”
At the national level, Square found that the average restaurant worker earned nearly 23% of their income in tips in 2024 versus 22% in 2023.
The report is based on data from customers of Square's payroll platform. The sample includes more than 200,000 employees of restaurants that use Square’s platform in all U.S. states.
Scott Dolch, president and CEO of the Connecticut Restaurant Association, said the data should be taken with a grain of salt because it's "based on just a single point of sale vendor's customers."
"What we do know for sure is that servers and bartenders are the backbone of Connecticut's restaurant industry," Dolch said. This sector makes up nearly 10% of our state's entire workforce, and surveys have shown that in Connecticut tipped employees take home more than $30 an hour on average."
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