Americans Spent Nearly $78 Billion on Tips in 2023

A Deep Dive into Tipping Trends

A new LendingTree analysis of 2023 USDA data reveals that Americans dropped a whopping $77.6 billion on tips for food purchased away from home. That staggering number reflects tipping culture’s deep roots and growing pervasiveness. 

Key Takeaways

15.0% of spending at full-service restaurants went to tips, while the broader category of food away-from-home (including fast-food, bars, hotels, etc.) averaged 6.75%  .

New Hampshire tops the chart: tipping 16.07% of away-from-home food spending—the highest in the nation. Utah lags at just 4.09%.

Across the U.S., 55.7% of household food budgets now go to meals eaten out—an increase from 49.4% in 2000.

The District of Columbia leads in per‑capita dining-out outlays, with residents spending an average of $10,291 annually, far ahead of the next highest state, Nevada, at $6,752.

Illinois saw the greatest shift toward dining out since 2000—rising 13.5 percentage points in its away-from-home food share.

Why It Matters to Tipping Culture

Tipping Has Transcended Traditional Settings

Once reserved for sit-down restaurants, tipping habits have expanded. Data even includes gratuities at quick-service venues and vending kiosks—underscoring how tipping is permeating every corner of the food economy.  Regional Norms Drive Wide Variation

The tipping gap between states—from New Hampshire’s 16.1% to Utah’s 4.1%—highlights the influence of local customs, dining preferences, and regional living costs. 

Dining Out Is Now the Norm

With Americans allocating over half of their food budgets to eating out, tipping decisions now have broad economic impact, touching the lives of workers across countless food-service settings.  Economic & Cultural Pressures Fuel the Tipping Trend

Though the study focused on totals, related LendingTree research and surveys show many consumers feel compelled to tip—even in fast food and takeout settings. This pressure is amplified by increased digital prompts and shifting norms.

Implications for Workers and Diners

For Workers: A $77.6 billion tipping pool is a major income stream—but its uneven distribution and dependency on consumer habits can leave workers vulnerable.

For Diners: Tipping is no longer optional in many scenarios. Understanding where, when, and why to tip—and how much—has become a vital part of budgeting.

For Policy & Industry: As tipping spills into fast-food and other unconventional sectors, there’s growing debate over minimum wages, tipping apps, and whether tipping norms need reevaluation.

Final Thoughts

The LendingTree study offers a comprehensive snapshot of tipping’s expanding role in the American dining landscape:

New Hampshire’s 16% average sets a tipping high water mark. Over half of food spending is out-of-home, marking a cultural shift toward dining-centric habits. Combined with consumer pressure and tech-facilitated nudges, tipping is now an inescapable part of everyday transactions.

For End Tipping Culture, this analysis raises important questions:

Should tipping continue to spread beyond full-service dining? How do we balance fair compensation with the expectation it creates for guests? Is it time to reconsider tipping’s place in labor practices and consumer norms?

LendingTree study