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Tipflation in Restaurants: Why You’re Paying More and How to Push Back


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The provided text is an excerpt from a 2025 article titled "Tipflation in Restaurants: Why You’re Paying More and How to Push Back," published by RetireCoast, which focuses on financial literacy and retirement planning. The article defines "tipflation in restaurants" as the result of rising tip expectations, increased menu prices, and new point-of-sale (POS) technology that normalises higher tip percentages (20-30%), compared to the historical standard of 10-15%. It argues that this trend benefits servers—who now often have higher base wages and a new federal tax exemption on up to $25,000 in tips—but creates "tip fatigue" and resentment among customers whose wages have not kept pace. Finally, the source offers practical advice for consumers, such as using the "custom tip" option and calculating gratuity only on the pre-tax meal subtotal, to reclaim control over their spending and combat the system's inherent pressures.

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RetireCoastBy William