Consumers Cutting Tips for Restaurants, Delivery, and More

Popmenu study finds 78% of consumers say tipping has become 'ridiculous'

Apr. 8, 2026 at 9:59am

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A new study from Popmenu, a restaurant technology company, found that U.S. consumers are cutting back on tipping at various establishments due to rising costs and a perceived pressure to tip. The study found that 44% of consumers are tipping less this year compared to last, with the biggest reductions in tips for restaurants (35%), grocery delivery (24%), hotels (19%), taxis/ride services (19%), and auto repair (19%).

Why it matters

This trend of 'tipping fatigue' is impacting tip-reliant professions like restaurant servers, delivery drivers, and other service workers who rely on gratuities to make a living. As consumers have less disposable income due to inflation, they are becoming more selective about when and how much they tip, putting financial strain on these workers.

The details

The Popmenu study found that 78% of consumers say tipping practices have become 'ridiculous', and 42% are becoming more comfortable skipping tips altogether. When presented with digital tipping prompts, the percentage of consumers who feel compelled to leave a tip has fallen from 66% to 59% over the past 6 months. Consumers estimate they spent about $130 on unnecessary tips in the past year, down from $150 the previous year.

  • The Popmenu study was conducted from March 15-16, 2026.

The players

Popmenu

A tech leader serving more than 10,000 restaurants with digital marketing, online ordering, and on-premise technologies.

Brendan Sweeney

CEO and Co-founder of Popmenu.

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What they’re saying

“Tip-reliant professions are feeling the financial impact of tipping fatigue more than anyone. This is compounded by customers having less disposable income due to inflated costs for food, energy and other necessities. Restaurants and other industries need to work even harder to drive more traffic through their doors and ensure workers earn what they need.”

— Brendan Sweeney, CEO and Co-founder of Popmenu

What’s next

The study found that 56% of consumers are willing to pay more for meals and beverages to provide higher wages for workers and eliminate tips, suggesting that restaurants and other industries may need to adjust their pricing and compensation models to adapt to changing consumer tipping habits.

The takeaway

This study highlights the growing 'tipping fatigue' among consumers, who are cutting back on gratuities due to rising costs and a perceived pressure to tip. This trend is putting financial strain on tip-reliant professions, and businesses may need to explore alternative compensation models to ensure their workers are adequately paid.