Related Article: When it comes to tipping at restaurants, are we heading back down to 15%? - morningstar.com - Saturday, August 16, 2025, 10:27:13 AM Eastern Daylight Time
Target: U.S. Congress, State Legislatures, and National Restaurant Association
Goal: We call on lawmakers and restaurant industry leaders to ensure fair compensation for all restaurant workers by moving away from the outdated, inequitable tipping system.
Restaurant workers are facing increasing economic insecurity as tipping rates decline. According to new data from Toast, average tips at full-service restaurants have dropped to 19.1%, the lowest in seven years. More than half of surveyed diners now tip 15% or less, and nearly 10% don't tip at all. This is happening while menu prices rise faster than inflation, and restaurants add new fees, leaving workers squeezed from all sides.
The pandemic highlighted the essential role of service workers, but as public attention fades, so does their compensation. Many restaurant staff still earn subminimum wages, relying on tips to make ends meet. The new 'no tax on tips' law does little to address the root problem: tips are an unstable and unfair way to pay workers.
It's time to guarantee fair, living wages for all restaurant workers—regardless of tips. We urge lawmakers and industry leaders to end the subminimum wage and tipping system, and ensure that all service workers are paid fairly for their labor.