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Tech Co. Offers Insight on Restaurant Bills. How Does California Rank for Tips?
gvw_edward_smith
By Edward Smith
Published 4 weeks ago on
September 10, 2024

Credit card transaction data show how much more lunch items cost and when diners are buying at restaurants. (GV Wire Composite/Paul Marshall)

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You may not know the brand, but if you’ve ever used a debit or credit card to buy food from a restaurant, you’ve probably used Toast’s technology.

The point-of-sale service company released its Restaurant Trends Report on Tuesday, detailing what people bought and how much they spent in April, May, and June.

What did they find? The sandwich’s dominance nationwide doesn’t extend to California, where the taco is king. Consumers also bought food earlier in the day. And, while cashiers in the Golden State are seeing a pay boost with the new minimum wage, it may be coming at the cost of gratuity, as data show Californians are the worst tippers.

Please Don’t Call a Hotdog a Sandwich. It’s a Taco

In 44 states, sandwiches were far and away the most purchased food item at a quick-service restaurant. That comes even as sandwiches experienced the second-highest jump in prices, climbing 4.6% year-over-year to hit $11.26.

The Golden State ranked No. 3 for the most expensive hoagies. While Californians paid $12.66 for subs, in Hawaii, consumers shelled out $13.37 for theirs.

But it’s not the sandwich that’s California darling. Tacos hold the honor of most purchased food item in California, Nevada, Oregon, and Texas. Taco prices also grew the most, climbing by nearly 6% to $5.81.

Hot dog prices grew the least, only going up $1.99.

Utahans must be pretty happy with their food choices as salads took the top spot there.

To all those in the Beehive State, just remember it’s what you put in the salad that makes it healthy.

Restaurants Said ‘Jump’ and Consumers Said ‘How High?’

In most cities, the average ticket paid by diners increased. That means either restaurants charged more, consumers bought more, or what they bought was more expensive. That, or a combination of all three.

In San Francisco, average ticket price grew by 1% year-over-year. But that didn’t dissuade diners as the number of transactions grew 4%. However, a 2% ticket boost in Los Angeles brought a 1% drop in transactions.

Atlanta, Georgia; Denver, Colorado; Columbus, Ohio; and Minneapolis, Minnesota had the biggest drops in number of sales, dropping between 4% and 5% each of them. It also came with a 3% jump in ticket size for each of those cities except Atlanta, which grew by 2%.

Are Better Wages Coming at the Cost of Tips?

In April in California, the state’s new $20 minimum wage for restaurant workers at major chains kicked in. That month, the median hourly wage surpassed $17 an hour for the first time.

Since January 2023, the average wage climbed just over $1 by June.

Nationwide, the average wage climbed just over $.50, going from $12.46 to $13.02.

Whether or not the two are related, the rise in wages came with a drop in tipping nationwide — at least those paid electronically. If broken down to tips earned per hour, across the nation, that amount peaked in April. Conversely, average tips in California dipped that month, going from $4.98 to $4.77 in the same month that minimum wage rose.

Tips recovered somewhat the next month but then continued their downward decline.

But for size of tips, California ranks the worst at 17.3%. Delaware leads the nation at 21.5%.

Forget Late Night Food Runs. We Want Our Breakfast.

Breaking down spending habits throughout the day, breakfast showed large gains while late night purchases dropped in nearly every U.S. city analyzed.

The 9 p.m. to midnight sales slot fell the most in Oklahoma City, dropping by 15% compared to the previous year. Denver and Seattle experienced 9% drops in late night purchases. Only in New Orleans, Washington D.C., and Houston, Texas did it climb.

In the morning, only three cities saw declines: Atlanta, Denver, and New Orleans.

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Edward Smith,
Multimedia Journalist
Edward Smith began reporting for GV Wire in May 2023. His reporting career began at Fresno City College, graduating with an associate degree in journalism. After leaving school he spent the next six years with The Business Journal, doing research for the publication as well as covering the restaurant industry. Soon after, he took on real estate and agriculture beats, winning multiple awards at the local, state and national level. You can contact Edward at 559-440-8372 or at Edward.Smith@gvwire.com.

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