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How the rise of inflation has heavily impacted tipping for service workers

How the rise of inflation has heavily impacted tipping for service workers
/ alvaro gonzalez / Moment / Getty Images

With the return of dining out and the rise of inflation, service workers are finding themselves with less tip money.

Inflation has been one of the most talked about issues in this new “post-pandemic” world. From groceries costing a lot more than they used to, gas prices skyrocketing, the increase in Uber lifts, to now dining out at restaurants… Everyone is truly being affected by the new increase. 

But, what does this mean for the service industry?

According to new data from point of sale provider, Square, tipping has taken a major hit. At the height of the pandemic, customers were rather generous to those working in the service industry, but with the new cost of living… It seems like many people don’t have as much money to spare as they once had.

The NY Post also reported that, “The beauty industry has seen tips decline to 24.9% of the tape total from 25.4%. And tips at quick-service restaurants — a category that includes cafes and coffee shops — declined to 15.2% in February from 17.2% in March 2021.”

Will this new information shift your thinking the next time you pay at the cash register?

While we’re unsure what this new reality will bring, all we know is that supporting your local service workers is more important than ever at this time.

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