Should You Tip For Takeout? Proper Tipping Etiquette For 2024

If you feel like you’re being asked to tip more often than before the Covid-19 pandemic, you’re not alone. In fact, according to Pew Research Center, 72% of adults in the United States say tipping is expected in more places compared to five years ago. 

At the same time, about two-thirds report that it’s easy to know how much or even whether to tip. Almost half of Americans report that it depends on the situation. 

Of course, one of the most confusing situations is tipping for takeout. After all, you’re not receiving the same level of service as dining in. However, restaurants and their workers depend on tips to make ends meet.

So, should you tip for takeout? The answer is: it depends!

That’s why, in this article, we’ll take a look at the factors influencing when and how much you should tip for carryout orders.

We’ll also explore how takeout tipping etiquette has changed in the last few years, its impact on restaurants and their workers, and how delivery services like Uber Eats fit into the broader takeaway tipping culture.

Key Takeaways

• Tipping for takeout orders was relatively rare before the pandemic, but it’s a much more common practice today.

• Whether and how much you should tip for takeout depends on the level of effort involved in the order, type of restaurant, and quality of service.

• Restaurant workers often make less than minimum wage in base pay and rely on tips to make ends meet. Although tipped employees are guaranteed to make at least minimum wage, restaurants must make up the difference if workers make less than minimum wage after accounting for tips.

• While tipping isn’t expected at fast food and counter service establishments, you should generally always tip for takeout from dine-in restaurants and delivery services like Uber Eats and DoorDash.

• For standard takeout orders, you should typically tip 10-15%. Meanwhile, large or complex orders, as well as third-party delivery services, may warrant a 15-20% tip.

How Has Takeout Tipping Culture Evolved?

Traditionally, tipping has been closely associated with table service in sit-down restaurants, where wait staff provide attentive care throughout the dining experience.

However, the debate over whether you should tip for takeout has been going on for quite awhile. 

In fact, according to a 2014 CNBC poll (which has since been removed from the CNBC article, but reported on by multiple sources) of nearly 39,000 people, just 14% said they tipped for takeout.

At the time, Michael Lynn, a professor of food and beverage management at Cornell University, told CNBC:

"I do not tip for takeout at restaurants even though the workers want tips and many other people do tip them… Why don't I tip them? Because the service they provide (bagging food and handing it to me) is minimal and standardized. I don't think they deserve it.”

Things have changed quite a bit in the decade since that poll and interview, though.

Pandemic's Influence on Takeout Tipping

As restaurants adapted to stay open during the Covid-19 pandemic by focusing on carryout and curbside pickup, the roles of restaurant workers evolved. Ultimately, this blurred the lines between traditional tipped and non-tipped positions.

Today, the cultural shift towards ordering more takeout is still being felt. In fact, according to a study we conducted, 15% of guests reported they’d be ordering takeout more, and 12% significantly more, compared to before the pandemic.

Likewise, 13% of guests said they’d be ordering delivery more, and 10% said they’d be ordering it significantly more.

Overall, the rise of takeout orders has challenged typical tipping conventions, particularly for takeout orders. Some of the reasons for this include:

• Increased Sympathy: Many customers began tipping more generously on takeout orders to support struggling restaurants and workers during lockdowns.

• Shift in Services: As restaurants pivoted to focus more on takeout and delivery, customers often maintained their tipping habits from dine-in experiences.

• Safety Considerations: Tipping became a way to show appreciation for workers facing increased health risks to provide food services.

• Economic Pressure: While some customers increased their tipping, others facing financial hardship found it more difficult to tip on takeout orders.

So, even though takeout tipping was a bit of a gray area prior to the pandemic, it’s even more confusing now.

Factors To Consider When Tipping For Takeout

Just as it’s always been, the question of whether to tip for takeout orders is not straightforward, even if it’s more commonplace today. Opinions vary among consumers, restaurant workers, and etiquette experts.

However, when deciding if and how much to tip for carryout orders, consider the following factors.

1. Effort Involved

Preparing takeout orders often requires significant effort from restaurant staff, including:

• Packaging food properly

• Ensuring order accuracy

• Sometimes providing curbside service

While in many cases this is just part of the job for restaurant workers, you should think about any extra effort involved in preparing your order.

For example, when considering a tip, think about the complexity of your order. Large or intricate orders requiring more time and attention may warrant a tip. 

Likewise, you should consider tipping for special requests requiring modifications or specific packaging needs.

2. Restaurant Type and Worker Compensation

The expectation for tipping can vary depending on whether you’re ordering from a:

• Fast food establishment

• Counter service eatery

• Full-service, sit-down restaurant

Many restaurant workers, including those handling takeout orders, are classified as tipped employees. This means they might receive a lower base wage with the expectation that tips will supplement their income.

So, consider whether you're ordering from a place where you’d typically tip for dine-in service.

3. Economic Factors

The pandemic put significant financial strain on the restaurant industry. While Upmetrics reports that many restaurants achieved at least 75% of pre-Covid sales in 2023, more than 54% have reported a decline in profit margins.

At the same time, they report that the average restaurant employee salary is just $38,423 per year, far below the average salary across all occupations of $65,470.

Overall, the economic struggles of restaurants and their workers have led some customers to tip more generously on takeout orders to support local businesses and workers.

4. Quality of Service

One more consideration to make when deciding whether or not to tip for takeout orders is the quality of service, which can include factors like:

• Quality of packaging

• Accuracy of the order

• Friendliness of staff

• Timeliness

If you have a really bad carryout experience, you may want to avoid tipping. However, if you receive high-quality service or the staff goes beyond your expectations, you should show your appreciation by leaving a tip.

Takeout Tipping Practices For Different Restaurant Types

Whether or not you should tip on takeout orders is heavily dependent on the type of restaurant you order from.

Below, we take a look at fast food establishments, traditional restaurants, and third-party apps to help you understand when it’s appropriate to leave a tip.

Fast Food and Counter Service

Unlike tipped food service workers, fast food employees are entitled to at least minimum wage. This means they’re not reliant on tips as part of their income.

However, some of these establishments now have tip jars or suggest gratuity on credit card terminals. While some people do leave tips for fast food workers, it’s generally pretty rare, and tipping isn’t expected.

So, although it’s not obligatory, small tips for exceptional service or complicated orders can be a nice gesture towards the staff.

Sit-Down Restaurants Offering Takeout

Full-service restaurants offering takeout is a more ambiguous situation. These establishments often employ tipped wait staff who may be involved in preparing to-go orders.

Because tipped wait staff rely on tips as part of their income, restaurants are typically allowed to pay less than minimum wage towards their base pay. However, if their pay amounts to less than minimum wage after accounting for tips, the employer is required to make up the difference.

Generally, since these workers rely on tips to make more than minimum wage, it’s often best practice to leave at least a small tip for takeout orders. You should also consider leaving a slightly larger tip if the order is large or complex, or the service is excellent.

Specialized Takeout and Delivery Services

For food delivery apps, tipping is generally always expected. After all, drivers for platforms like Uber Eats and DoorDash rely heavily on tips.

However, you can also place pickup orders through these apps, which don’t require a driver.

Even for pickups, though, tipping is often encouraged, but at a lower rate than for delivery.

The Impact of Takeout Tipping

Given the increase in takeout orders since the pandemic, carryout tipping can have a big impact on both restaurant workers and owners.

Below, we discuss some of the ways in which tipping affects both of them.

Impact On Restaurant Workers

Many restaurant employees, including those handling takeout orders, rely on tips to supplement their income. 

Depending on the type of restaurant, these workers may be paid below the standard minimum wage with the expectation that tips will make up the difference. 

While restaurant owners will make up the difference if they make less than minimum wage, these employees typically hope to make more than that. After all, the federal minimum wage is $7.25, which equates to a salary of just $15,000 per year.

When customers don't tip on takeout orders, it can significantly impact these workers' earnings.

Impact on Restaurant Owners

Tipping on takeout orders can indirectly benefit restaurant owners by helping to retain staff and maintain morale. Additionally, it can prevent restaurants from having to make up the difference between tips and minimum wage requirements.

However, the increasing expectation of tipping for takeout can also put pressure on owners to ensure fair distribution of tips among staff

Additionally, because customers can become frustrated by “tipflation,” owners must also manage customer expectations and make sure their business model isn’t overly-reliant on takeout tipping.

Tipping On Third-Party Delivery Services (Uber Eats, DoorDash, etc.)

The rise of food delivery apps has added another layer to the tipping debate. Uber Eats tipping, along with tipping on other platforms like DoorDash and Grubhub, has become a crucial part of delivery drivers' income. 

In fact, Morning Brew reports that the breakdown for DoorDash drivers’ income in 2019 was:

• Base Pay: 49.40%

• Bonus Pay: 12.30%

• Customer Tips: 37.96%

Meanwhile, the breakdown for Uber Eats drivers at that time was:

• Base Pay: 71.70%

• Bonus Pay: 7.50%

• Customer Tips: 20.90%

However, these third-party delivery apps have struggled to become profitable. Because they’re under increasing pressure to turn a profit, drivers have become much more reliant on customer tips.

In 2023, the breakdown for DoorDash drivers’ income was:

• Base Pay: 48.20%

• Bonus Pay: 0.00%

• Customer Tips: 51.80%

Likewise, Uber Eats saw a huge increase in reliance on customers tips:

• Base Pay: 44.80%

• Bonus Pay: 3.20%

• Customer Tips: 52.00%

While some cities, like New York City, have passed legislation mandating a minimum pay rate for drivers, Morning Brew also reports that the apps have made it more difficult to tip in these areas. This is their attempt to reduce overall costs for customers, because the base costs of their services have increased.

Should You Tip Third-Party Delivery Drivers?

The ever-evolving laws and regulations have made the decision to tip, and how much to tip, even more complicated. So, here are some considerations for tipping on these platforms:

• Location: Delivery drivers in some areas make a higher base pay than in other areas. Think about your local delivery driver wage laws when considering how much to tip.

• Difficulty of Order: If your driver must travel a long distance or the pickup is hard to get to, consider tipping more.

• Pre-Tipping vs. Post-Delivery Adjustment: Consider pre-tipping when placing your order to encourage drivers to complete your order quickly. Then, think about adding more to the tip based on the quality of service.

• Service Evaluation: Base your tip on factors like delivery speed, communication, and care taken with the order.

Generally speaking, you should always leave at least a small tip for your Uber Eats or DoorDash drivers. The amount you should tip will largely depend on the factors above.

Expert Opinions on Takeout Tipping

There are several different viewpoints on whether you should tip for takeout. So, let’s look at what a few experts recommend:

• Emily Post Institute: Suggests tipping 10% for large takeout orders or complex requests, but considers it optional for simple orders.

• BankRate Survey: Just 11% of people surveyed said they always tip for takeout orders, down from 13% last year.

• Server at Philadelphia-Based Restaurant: “We make the tipped minimum wage, which is $2.83, and I think a lot of people don’t understand that we are fully relying on them to make an income.”

• Sean Jung, Professor at Boston University School of Hospitality Administration: “The wage workers are receiving isn't sufficient… So now everybody is using this very weird way to increase wages while maintaining the same menu price.”

Guidelines for Takeout Tipping

While there's no one-size-fits-all rule, here are some general guidelines for tipping on takeout orders:

The Future of Takeout Tipping

As the restaurant industry continues to evolve, tipping practices for takeout are likely to continue shifting. 

Some potential trends include:

• Increased Transparency: More restaurants may adopt clear policies on how takeout tips are distributed among staff.

• Technology Integration: Digital ordering systems may offer more nuanced tipping options based on service components.

• Service Charges: Some restaurants might move towards including set service charges for takeout orders to ensure staff compensation.

• Education and Communication: There may be more efforts to educate consumers about the work involved in takeout orders and the impact of tipping.

So, Should You Tip For Takeout?

The question, "Should you tip for takeout?" doesn't have a simple answer. It depends on various factors, including the type of restaurant, the complexity of your order, and individual circumstances. 

However, as takeout and delivery services have become increasingly central to the restaurant industry, considering a tip has become more common.

Ultimately, tipping is a personal decision, but it's one that can have a significant impact on restaurant workers and owners. Being informed about the realities of the restaurant business, including wage structures and the effort involved in preparing takeout orders, can help guide your tipping decisions.

Whether you're picking up a quick meal from a fast food joint, ordering a family dinner from your favorite sit-down restaurant, or using services like Uber Eats, considering a tip can be a great way to support restaurant workers and show appreciation for their efforts. 

Finally, if you’re a restaurant manager looking to simplify your tip management, be sure to check out Toast’s tip manager. 

With customizable tip rules, automated tip distribution, and streamlined tip reporting, you can save hours each week and ensure each employee receives the right amount of tips.