Technology

Meal prices on the rise, customers tipping more

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May 31, 2022

Despite inflation increasing the price of orders, Americans are tipping more and the average price of an order increased by 7%.

Those are top findings of a study from software and payment company SpotOn, according to a press release.

Over the course of six months (October 2021 to April 2022), the average tip increased by 9%.

The statistics align with the recent Consumer Price Index report that shows full-service meals are up 8.7% and take-out is up 7.2% over the last 12 months. This is the largest 12-month increase since the inception of the index in 1997 according to the U.S. Bureau of Labor Statistics. Economists say the trend in increased tipping is correlated to diners having pent-up savings from the pandemic.

The Producer Price Index found food prices increased 12.8% year-over-year — 22% for grains, 36.4% for cooking oils, and a whopping 43.9% for beef and veal. These spikes have forced restaurants to adjust prices across the board.

"Pricing is a challenge right now because the inflation rates have gone up," Chuck Conrose, owner of Tony's NY Pizza, in Fort Meyers, Florida, said in the release. "Prices have gone up so we have to neutralize that by raising our prices for our guests. It's not something I like to do, but we have to pass those costs along so that we can all make money and stay in business."

Menu report highlights included:

• Pizza: 7% increase.
• Tacos: 10.5% increase.
• Avocado: 4% increase.
• Wine: 6% increase.
• Coke/Diet Coke: 5% increase.
• Prawns: 14% increase.
• Lobster: 8% increase.
• Crab: 11% increase.

"The fluctuating market will continue to present challenges to maintaining a healthy restaurant profit margin," Kevin Bryla, head of client experience at SpotOn, said in the release. "We are actively working alongside our restaurant clients to ensure they have the technology they need to reduce costs, maximize their staff, optimize operational efficiency, and drive revenue, so they can boost their profit margins — point by point."