In Q1 2025, Square found that the average tip on food and beverage transactions was 15.17%, and this continued to fall into Q2 with the average tip coming in at 14.99%, aligned to dropping consumer confidence in the economy. Bars regularly receive the highest tips; in Q1 their average tip was 17.36% on each transaction, though this too fell to 16.96% in Q2. Cafés and quick-service restaurants received 14.72% and 14.64% in Q1, respectively, and dropped to 14.57% and 14.2% in Q2. Tips at full-service restaurants also declined from 14.76% in Q1 to 14.64% in Q2. “As previous Square research has underlined, tips make up a major part of workers’ wages – the average restaurant employee earned nearly 23% of their income in tips in 2024,” said Ming-Tai Huh, Head of Food and Beverage at Square. “As consumer confidence in the economy shifts and tips fall, workers are taking home less which could lead to a return to labor uncertainties for the industry – adding to the crunch local restaurants are continuing to feel.” In terms of sales growth, fast casual restaurants peaked at 9.3% in Q4 2024, with a moderation down to .9% in 2025. QSRs peaked at 15.8% in Q4 2024 with continued strength into 2025 between 8.7% and 9.1%.Sales at fine dining restaurants declined by 13% in early 2024 compared to late 2023, likely due to reduced discretionary spending, but recovered to between 2.1% and 3.1% growth by early 2025, signaling renewed interest in premium dining experiences. According to Square’s 2025 Future of Commerce report, 78% of restaurant owners said online ordering is the channel that drives the most orders to their business – so ensuring this ordering option is streamlined is key to a successful business. Overall, leaning into first-party ordering is more profitable for sellers, with the profit margins being 64% higher than third-party delivery. With Square, too, sellers save an average of 30% through first-party online ordering.