When the bill comes at bars and restaurants, most Americans know that an 18 percent tip is standard. But new data from Secret Hopper — a shopping service for craft beer businesses — suggests that age plays a major role in how much guests are tipping at taprooms.
Secret Hopper analyzed data from 2239 taproom visits in the U.S. from Jan. 1, 2021 to Nov. 14, 2022 and found that the older guests are, the less likely they are to leave a large tip. The data indicates that while Gen Xers aged 46 to 50 spend the most amount of money per tab (averaging out to $58.76) it’s actually Gen Z guests aged 21 to 25 that tip the most at 27.5 percent, despite their check averages being seven dollars less.
One potential reason for the differences in tipping habits could be that guests are more inclined to tip people who are similar to themselves. According to the U.S. Bureau of Labor Statistics, the average age of hospitality industry employees working in places serving alcohol is 35.2 years old, with individuals aged 35 to 34 accounting for 32.5 percent of the workforce. This suggests that as younger generations are more-often served by younger employees in taprooms, it’s resulting in higher rates of gratuity.
Secret Hopper also points to the theory that those who have previously worked tipped jobs are more likely to leave tips for others. As Pew Research Center has identified that younger adults in lower-income households are more likely to have held these positions, they could be driving the trend of younger generations tipping more.
While Gen Z and millennials could be tipping more in taprooms for multiple reasons, getting more attention on-premise isn’t one of them. As the data reveals, individuals aged 21 to 25 are only 45.3 percent likely to receive high levels of engagement from staff, while guests over the age of 56 are 57.1 percent more likely to receive the attention. (High engagement is defined by Secret Hopper as “when the staff goes above and beyond standard acts of service [i.e. greeting guests, offering recommendations] and ‘wow’s’ the guest.”)
Despite receiving high levels of engagement, taproom visitors over the age of 56 continue to tip the least, averaging out to just 23.2 percent. In fact, the data reveals a negative correlation between levels of engagement and average tips, with those expected to receive the least level of engagement tipping the highest and vice-versa.
There is some good news on the gratuity front, though: each age group is still tipping well-above 20 percent.
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