Tips Account for 15.02% of Full-Service Restaurant Spending in US, 6.75% of Away-From-Home Food Spending
Americans spent about $78 billion in 2023 on tips at restaurants, bars and other places where food is consumed away from home, according to a LendingTree analysis of government data.
While other states’ diners spent more on tips in 2023 — the most recent year for which data is available — New Hampshire saw the highest percentage of its away-from-home food spending (16.07%) go toward tips.
Here’s more of what we found.
Key findings
- Americans spent $77.6 billion on tips for food purchased to be consumed away from home in 2023, the latest year for which data is available. Tips accounted for 15.02% of spending at full-service restaurants in the U.S. When including limited-service restaurants, drinking establishments and other similar places, that percentage falls to 6.75%.
- New Hampshire leads the nation in tipping rates. Tips comprised 16.07% of spending on food purchased to be consumed away from home in the state. The District of Columbia and South Carolina are second and third. Utah, Mississippi and Idaho rank lowest, with tips comprising 5.10% or less of spending. (Note: These percentages include tips for full-service restaurants, limited-service restaurants and drinking establishments, among others.)
- Americans are increasingly dining out. In 2000, spending on food consumed away from home accounted for an average of 49.4% of food budgets. By 2023, that share had risen to 55.7%, indicating a significant shift in consumer behavior.
- The District of Columbia has the highest per-capita spending on dining out, while Illinois has seen the fastest growth. Those in the nation’s capital spend an estimated $10,291 per person annually on food purchased to be consumed away from home. That’s far higher than second-place Nevada at $6,752. Meanwhile, Illinois has seen the most significant increase in dining-out expenditures, climbing 13.5 points from 42.4% of the state’s total food spending in 2000 to 55.9% in 2023.
The government data used to create this report distinguishes between spending at locations where food is purchased for consumption at home and spending at locations where food is purchased for consumption away from home.
- Locations where food is typically purchased to be consumed at home include (but aren’t limited to) grocery stores, convenience stores, warehouse clubs, mail-order and home-delivery food services.
- Locations where food is typically purchased to be consumed away from home include (but aren’t limited to) full-service restaurants, limited-service restaurants (often fast food places), drinking establishments, hotels, motels and vending machines.
In this report, our focus is on the latter, which we refer to as away-from-home food spending.
Americans spent $77.6 billion on tips for away-from-home food purchases in 2023
Americans spend an enormous amount of money each year on tips. The development of mobile payment technologies has made it easier to tip in virtually any situation, including many in which tips traditionally haven’t been customary.
Of course, tipping is nothing new in restaurants. They’re perhaps the places in American society where tipping is most commonly expected, and our analysis shows Americans spent a huge amount of money — $77.6 billion — on tips in 2023.
Americans’ spending on tips on away-from-home food purchases, at a glance
| Total spending on tips in the U.S. | $77.6 billion |
| % of spending at full-service restaurants that went to tips | 15.02% |
| % of away-from-home food spending that went to tips | 6.75% |
We spend the most on tips at full-service restaurants. Our analysis showed that just over 15.00% of spending at full-service restaurants went toward tips. Given the long-held standard of tipping your server 15% or more at these types of establishments, that is about what we expected.
Still, people don’t just tip at full-service restaurants. They also tip at limited-service or quick-service restaurants — such as McDonald’s, Chick-fil-A or Chipotle — as well as bars, hotels and a variety of other locations. The government data included tipping spending at those sorts of places as well — even, oddly enough, vending machines, where tipping isn’t exactly common.
When you include tipping on food bought at those places as well, the percentage of spending on food purchased away from home falls significantly to 6.75%.
New Hampshire leads nation in tipping rate on away-from-home food purchases
Our analysis uncovered significant differences among the states and their percentage of away-from-home food spending that goes toward tips. New Hampshire’s percentage is the highest at 16.07%, nearly four times the nation’s lowest percentage, Utah’s 4.09%.
The state percentages in this report include tipping spending at places where food is purchased to be consumed away from home, not just at full-service restaurants. Additionally, the spending numbers reflect the total dollars spent in the state by anyone, not just by residents.
Eastern states dominate the top of the list, with New Hampshire joined by the District of Columbia, North and South Carolina, Vermont, Rhode Island and Maine in the top 10.
The bottom is primarily a mix of states from the South and Western U.S. Utah is at the bottom, followed by Mississippi, Idaho, Alabama, Arkansas and New Mexico.
It’s important to understand, however, that being at the bottom doesn’t necessarily mean people in these states don’t tip as well when given the opportunity.
The rankings are based on the percentage of spending on tips at all places where food is purchased to be consumed away from home, so where you get your food matters. For example, if people in one state tend to dine at full-service restaurants far more often than those in another state, it stands to reason their overall percentage spent on tips would be higher.
Full rankings: Tips as % of spending on food away from home by state
| Rank | State | Tip as % of spending |
|---|---|---|
| 1 | New Hampshire | 16.07% |
| 2 | District of Columbia | 12.65% |
| 3 | South Carolina | 11.17% |
| 4 | Minnesota | 10.11% |
| 5 | North Carolina | 9.75% |
| 6 | Washington | 9.51% |
| 7 | Vermont | 9.31% |
| 8 | Nebraska | 9.12% |
| 9 | Rhode Island | 8.54% |
| 10 | Maine | 8.18% |
| 11 | Indiana | 7.96% |
| 12 | Delaware | 7.77% |
| 13 | New York | 7.27% |
| 14 | Massachusetts | 7.26% |
| 15 | Florida | 7.23% |
| 16 | New Jersey | 7.02% |
| 17 | Connecticut | 6.83% |
| 18 | Montana | 6.81% |
| 19 | Illinois | 6.70% |
| 20 | Colorado | 6.52% |
| 21 | Pennsylvania | 6.44% |
| 22 | Hawaii | 6.39% |
| 22 | Michigan | 6.39% |
| 24 | Oregon | 6.38% |
| 25 | North Dakota | 6.30% |
| 26 | Oklahoma | 6.25% |
| 26 | Alaska | 6.25% |
| 28 | Tennessee | 6.22% |
| 29 | Nevada | 6.19% |
| 30 | Louisiana | 6.16% |
| 31 | California | 6.15% |
| 32 | Virginia | 6.13% |
| 33 | Missouri | 6.02% |
| 34 | Texas | 6.00% |
| 35 | Wyoming | 5.96% |
| 36 | Georgia | 5.92% |
| 37 | Ohio | 5.88% |
| 38 | Kansas | 5.76% |
| 39 | Maryland | 5.73% |
| 40 | Wisconsin | 5.67% |
| 41 | West Virginia | 5.66% |
| 42 | Iowa | 5.60% |
| 43 | Arizona | 5.57% |
| 44 | South Dakota | 5.50% |
| 45 | Kentucky | 5.45% |
| 46 | New Mexico | 5.43% |
| 47 | Arkansas | 5.26% |
| 48 | Alabama | 5.21% |
| 49 | Idaho | 5.10% |
| 50 | Mississippi | 4.91% |
| 51 | Utah | 4.09% |
Americans are increasingly dining out
Whether they’re going to full-service restaurants, fast-food joints, vending machines or somewhere else, people are clearly dining out more.
In 2000, away-from-home food spending made up slightly less than half (49.4%) of Americans’ food budgets. In 2023, the most recent year for which data is available, that share had risen to 55.7%. That marks the highest percentage going back to at least 1997.
% of Americans’ food budgets spent on away-from-home food
| Year | At-home food spending | Away-from-home food spending | Total food budget | % of food budget spent on away-from-home food |
|---|---|---|---|---|
| 2023 | $411,194.28 | $516,924.00 | $928,118.28 | 55.7% |
| 2022 | $422,086.31 | $491,775.16 | $913,861.47 | 53.8% |
| 2021 | $430,328.91 | $460,209.53 | $890,538.44 | 51.7% |
| 2020 | $413,256.91 | $386,049.63 | $799,306.54 | 48.3% |
| 2019 | $397,798.47 | $455,372.50 | $853,170.97 | 53.4% |
| 2018 | $388,964.16 | $447,550.25 | $836,514.41 | 53.5% |
| 2017 | $377,144.84 | $437,078.56 | $814,223.40 | 53.7% |
| 2016 | $363,050.31 | $420,249.72 | $783,300.03 | 53.7% |
| 2015 | $352,916.94 | $405,442.41 | $758,359.35 | 53.5% |
| 2014 | $352,467.06 | $383,380.50 | $735,847.56 | 52.1% |
| 2013 | $347,860.88 | $365,936.34 | $713,797.22 | 51.3% |
| 2012 | $344,168.84 | $353,097.69 | $697,266.53 | 50.6% |
| 2011 | $331,058.78 | $343,576.09 | $674,634.87 | 50.9% |
| 2010 | $329,764.41 | $331,166.75 | $660,931.16 | 50.1% |
| 2009 | $322,327.28 | $325,303.28 | $647,630.56 | 50.2% |
| 2008 | $329,685.19 | $338,137.81 | $667,823.00 | 50.6% |
| 2007 | $335,621.69 | $342,307.84 | $677,929.53 | 50.5% |
| 2006 | $332,749.13 | $336,031.97 | $668,781.10 | 50.2% |
| 2005 | $323,175.47 | $325,940.66 | $649,116.13 | 50.2% |
| 2004 | $310,999.50 | $317,090.59 | $628,090.09 | 50.5% |
| 2003 | $306,135.56 | $304,989.47 | $611,125.03 | 49.9% |
| 2002 | $300,040.69 | $295,360.84 | $595,401.53 | 49.6% |
| 2001 | $298,205.88 | $289,715.28 | $587,921.16 | 49.3% |
| 2000 | $294,291.66 | $287,323.84 | $581,615.50 | 49.4% |
Since the percentage of spending on food consumed away from home plunged in 2020 due to the pandemic, there have been three consecutive years of significant growth. That growth has pushed away-from-home food spending levels past prepandemic peaks.
D.C. has highest per-capita dining-out spending, while Illinois has seen massive growth
When it comes to per-capita spending on dining out, no place can match D.C. People in the nation’s capital spent about $3,500 more on dining out than any other state in 2023 — $10,291, compared to second-place Nevada’s $6,752.
Three of the four top states in per-capita spending on dining out can be found in the West, with Hawaii and California ranking third and fourth behind Nevada. Northeastern states make up much of the rest of the top 10, including Massachusetts, New York, Rhode Island and New Hampshire.
Midwestern and Southern states dominate the bottom of the list. West Virginia residents spend the least per capita on dining out, followed by Iowa, Wisconsin, Arkansas and Alabama.
While Illinois residents don’t make the top 10 for per-capita dining-out spending, they’ve undergone a major shift in their food spending budgets since 2000. Back then, food away from home made up just 42.4% of Illinoisans’ food budgets. In 2023, that number had risen 13.5 points to 55.9%. That’s the biggest shift seen in any state during that period, though six other states — Connecticut, South Carolina, New York, New Jersey, New Hampshire and North Carolina — all saw at least double-digit shifts toward more dining-out spending.
On the flip side, just three places have seen dining-out spending make up a smaller portion of their food budget since 2000: Nevada (down 4.4 points), D.C. (down 2.7) and Rhode Island (down 1.4).
Full rankings: Per-capita annual spending on away-from-home food by state
| Rank | State | Per-capita spend |
|---|---|---|
| 1 | District of Columbia | $10,291 |
| 2 | Nevada | $6,752 |
| 3 | Hawaii | $6,628 |
| 4 | California | $5,072 |
| 5 | Massachusetts | $4,626 |
| 6 | Colorado | $4,579 |
| 7 | New York | $4,424 |
| 8 | Rhode Island | $4,412 |
| 9 | New Hampshire | $4,224 |
| 10 | Washington | $4,182 |
| 11 | Florida | $4,091 |
| 12 | Wyoming | $3,976 |
| 13 | Texas | $3,895 |
| 14 | Oregon | $3,882 |
| 15 | Maine | $3,872 |
| 16 | Alaska | $3,805 |
| 17 | Arizona | $3,781 |
| 18 | Connecticut | $3,776 |
| 19 | New Mexico | $3,751 |
| 20 | Illinois | $3,744 |
| 21 | New Jersey | $3,737 |
| 22 | South Carolina | $3,726 |
| 23 | Tennessee | $3,708 |
| 24 | Delaware | $3,647 |
| 25 | Montana | $3,614 |
| 26 | Georgia | $3,544 |
| 27 | North Carolina | $3,542 |
| 28 | Louisiana | $3,520 |
| 29 | Vermont | $3,506 |
| 30 | Virginia | $3,505 |
| 30 | Maryland | $3,505 |
| 32 | Utah | $3,477 |
| 33 | Ohio | $3,296 |
| 34 | Minnesota | $3,273 |
| 35 | Missouri | $3,252 |
| 36 | Nebraska | $3,185 |
| 37 | Indiana | $3,138 |
| 38 | Idaho | $3,111 |
| 39 | Kentucky | $3,108 |
| 40 | Oklahoma | $3,100 |
| 41 | South Dakota | $3,099 |
| 42 | Pennsylvania | $3,091 |
| 43 | Kansas | $3,031 |
| 44 | Mississippi | $2,927 |
| 45 | Michigan | $2,918 |
| 45 | North Dakota | $2,918 |
| 47 | Alabama | $2,898 |
| 48 | Arkansas | $2,877 |
| 49 | Wisconsin | $2,848 |
| 50 | Iowa | $2,760 |
| 51 | West Virginia | $2,597 |
Full rankings: Change in % of food budget spent on away-from-home food purchases
| Rank | State | Away-from-home food as % of 2000 food spending | Away-from-home food as % of 2023 food spending | Point change |
|---|---|---|---|---|
| 1 | Illinois | 42.4% | 55.9% | 13.5 |
| 2 | Connecticut | 42.4% | 54.6% | 12.2 |
| 3 | South Carolina | 43.1% | 54.3% | 11.1 |
| 4 | New York | 47.9% | 58.5% | 10.6 |
| 5 | New Jersey | 45.0% | 55.2% | 10.2 |
| 6 | New Hampshire | 40.3% | 50.4% | 10.1 |
| 7 | North Carolina | 41.2% | 51.3% | 10.1 |
| 8 | Massachusetts | 48.1% | 57.5% | 9.4 |
| 9 | Alabama | 39.6% | 48.5% | 8.9 |
| 10 | Maryland | 42.4% | 50.9% | 8.6 |
| 11 | Texas | 44.0% | 52.6% | 8.5 |
| 12 | Florida | 45.2% | 53.4% | 8.3 |
| 13 | Vermont | 41.9% | 49.7% | 7.8 |
| 14 | Pennsylvania | 41.8% | 49.3% | 7.6 |
| 15 | West Virginia | 41.1% | 48.6% | 7.5 |
| 16 | Nebraska | 39.7% | 46.9% | 7.2 |
| 17 | Delaware | 46.2% | 53.2% | 7.1 |
| 18 | California | 49.6% | 56.7% | 7.0 |
| 19 | Wyoming | 42.9% | 49.8% | 7.0 |
| 20 | Minnesota | 44.1% | 51.0% | 6.9 |
| 21 | Virginia | 42.7% | 49.6% | 6.9 |
| 22 | Kentucky | 43.5% | 50.3% | 6.8 |
| 23 | South Dakota | 41.4% | 47.8% | 6.4 |
| 24 | Louisiana | 44.7% | 51.1% | 6.4 |
| 25 | Maine | 41.6% | 47.6% | 6.0 |
| 26 | Arkansas | 40.6% | 46.5% | 5.9 |
| 27 | Montana | 41.4% | 47.1% | 5.8 |
| 28 | Wisconsin | 40.1% | 45.4% | 5.3 |
| 29 | North Dakota | 41.0% | 46.2% | 5.2 |
| 30 | Indiana | 44.6% | 49.7% | 5.1 |
| 31 | Iowa | 37.8% | 42.7% | 5.0 |
| 32 | Washington | 43.8% | 48.8% | 4.9 |
| 33 | Oklahoma | 46.4% | 51.0% | 4.6 |
| 34 | New Mexico | 47.1% | 51.4% | 4.3 |
| 35 | Mississippi | 44.7% | 49.0% | 4.3 |
| 36 | Tennessee | 48.6% | 52.2% | 3.6 |
| 37 | Idaho | 39.1% | 42.7% | 3.6 |
| 38 | Utah | 41.3% | 44.8% | 3.6 |
| 39 | Missouri | 46.0% | 49.5% | 3.5 |
| 40 | Ohio | 46.9% | 50.3% | 3.4 |
| 41 | Colorado | 48.0% | 50.9% | 2.9 |
| 42 | Georgia | 47.8% | 50.7% | 2.9 |
| 43 | Kansas | 42.5% | 45.2% | 2.7 |
| 44 | Oregon | 44.5% | 47.0% | 2.4 |
| 45 | Arizona | 47.3% | 49.7% | 2.4 |
| 46 | Alaska | 43.2% | 45.5% | 2.3 |
| 47 | Michigan | 43.8% | 46.0% | 2.2 |
| 48 | Hawaii | 60.9% | 61.1% | 0.2 |
| 49 | Rhode Island | 57.7% | 56.3% | -1.4 |
| 50 | District of Columbia | 77.2% | 74.5% | -2.7 |
| 51 | Nevada | 66.0% | 61.5% | -4.4 |
Tips for managing your food budget without going broke
It’s no secret that food has become significantly more expensive over the past few years, and these increases have put a strain on American families. We’ve seen it time and again in LendingTree reports, including those in which people have said fast food has become a luxury and that a growing number of Americans are using buy now, pay later loans to purchase groceries.
Still, as Americans, we love dining out. I know I spend more money on it than I should, and I’m certain I’m not alone. Even as the rising cost of groceries stretches household budgets to the breaking point, we don’t want to give up the fun and excitement — and convenience — of dining out.
How do you balance it all without taking on debt? First of all, you shouldn’t try to cut corners by giving smaller tips. Service industry workers’ livelihoods often depend on customers’ tips, and if you can’t afford to give a standard tip at a restaurant, you probably shouldn’t be there. It isn’t fair to those working hard to provide you with great service.
Here are a few tips for managing your food budget:
- Rewards credit cards are key. If groceries are a big part of your family’s budget and you’re not shopping with a rewards credit card, you’re doing yourself a disservice. The same is true if you spend a lot of money dining out. Countless credit cards offer extra rewards for grocery shopping and/or restaurant spending, and those rewards can help extend your budget. It may not seem like 2% or 3% cash back is that impactful, but it adds up to very real money when you’re earning it consistently for years.
- Shopping around matters. Many of us are creatures of habit when it comes to grocery shopping, buying the same items from the same place week after week. And that can lead to us paying more than we need to for groceries. You don’t need to drive across town to save a quarter on a gallon of milk, but being willing to compare prices from different grocery stores can lead to real savings.
- Take advantage of loyalty programs and app-based deals. Your favorite grocery store and fast-food place probably have apps you can download to find deals and get other perks you wouldn’t find elsewhere. I know I’ve earned free meals many times from restaurants that I frequent. You might even get a free entree on your birthday for giving them your email address. Of course, as with any rewards program, you don’t want to overspend just to get rewards. That’s a recipe for trouble.
- Budget for it. If you’re passionate about something and you spend a lot of money on it, it should be part of your budget. That’s the case with dining out. Doing so makes you accountable to yourself and your family for what you spend, but it also provides the information you need to adjust your spending if you stray a little off track one month.
Methodology
To estimate tipping behavior by state, we analyzed 2023 U.S. Department of Agriculture (USDA) Economic Research Service (ERS) National Food Expenditure Series data. Specifically, we compared two expenditure estimates: total spending on food away from home (including tax and tip) and total spending on food away from home (excluding tax and tip).
To isolate the portion attributable to tips, we estimated the amount spent on sales tax by applying each state’s local sales tax rate to the total expenditure. We then subtracted this estimated tax amount from the difference between the USDA expenditure figures. The remaining amount was attributed to tips.
State-level sales tax rates are via the Tax Foundation, based on 2025 data, while 2024 population data is via the U.S. Census Bureau.
Get debt consolidation loan offers from up to 5 lenders in minutes
- Key findings
- Americans spent $77.6 billion on tips for away-from-home food purchases in 2023
- New Hampshire leads nation in tipping rate on away-from-home food purchases
- Americans are increasingly dining out
- D.C. has highest per-capita dining-out spending, while Illinois has seen massive growth
- Tips for managing your food budget without going broke
- Methodology
Read more
Guilt Tip: 60% of Americans Say They’re Tipping More as Technology Nudges Consumers to Add Gratuity Updated May 8, 2023 Tipping has been a part of American culture for centuries, and the rise of technology…Read more
Nearly 70% of Americans Say They’re Dining Out Less Frequently Due to Inflation, and Almost a Third Are Tipping Less Updated August 30, 2022 Most Americans are feeling the severe effects of inflation, and the restaurant and grocery industries…Read more