Algosensey Quantitative Think Tank Center-How much do you tip? If you live in these states, your answer may be lower.

What states have Algosensey Quantitative Think Tank Centerthe best and worst tippers? And what foods were the most popular at quick-service restaurants across the U.S. and which states saw price increases?

Toast, a digital platform built for restaurants, provided some insights in its latest Quarter 2 2024 Restaurant Trends Report.

The report is generated using "aggregative data analysis" from a selection of restaurants in various U.S. cities on the Toast platform, which serves approximately 120,000 restaurant locations as of June 30, Toast said. It "offers a comprehensive view of transactional data and consumer behavior at Toast restaurants," Toast Chief Marketing Officer Kelly Esten told USA TODAY.

Prices for food went up across the board. Esten said that "could be attributed to a combination of inflation and rising business costs. Our data shows a consistent year-over-year price increase for various lunch items at quick-service restaurants (QSRs), with sandwiches, bowls, burgers, and sodas seeing an average price increase of 4.6%, which may be indicative of market trends that inflation could influence." A quick-service restaurant is an industry term for a restaurant that is casual and provides food quickly. It also usually has limited or no table service, or servers.

A shift in when people are eating out

Esten said one of the things that surprised her was a shift toward breakfast in many cities.

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"We found that consumer spending at quick-service restaurants using Toast saw a noticeable shift toward breakfast and away from dinner and late-night transactions," she said. Consumer spending at quick-service restaurants in 20 U.S. cities saw this trend, according to the report.

The city with the largest increase in breakfast transactions was Richmond, Virginia (up 15%). Oklahoma City (up 11%), Indianapolis (up 8%) and Philadelphia (up 8%) followed.

Cities with the largest decreases in dinner transactions were: Columbus, Ohio (down 9%), Minneapolis (down 8%), Austin, Texas (down 4%), Charlotte, North Carolina (down 4%), and Miami (down 4%).

Among late-night transactions, the cities with the biggest decreases were Oklahoma City (down 15%), Denver (down 9%), Seattle (down 9%) and Columbus (down 8%). 

Here are some quick bite results

Here are highlights from the latest report:

• Guests at quick-service restaurants paid an average of $11.26 for sandwiches and wraps, $12.98 for bowls and $11.45 for burgers. Guests also paid $11.42 for salads, $10.74 for burritos, $6.04 for an order of fries and $3 for a soda. All the prices represented a 2.7% to 4.6% increase from the same time last year.
• Sandwiches and wraps were the most popular foods at quick-service restaurants in every state except California, Nevada, Oregon, and Texas, where tacos are the most popular. Bowls were most popular in Hawaii, and salads were the most popular item in Utah.
• Tipping dropped slightly in the second quarter, compared to the first quarter, dropping a tenth of a percent to 18.8% from 18.9%. Average full-service restaurant tips dipped to 19.3% in the second quarter, compared to 19.4% in the first quarter and average quick-service restaurant tips dropped to 15.9% in the second quarter when compared with 16% in the first quarter. Tips for the report were analyzed for tips added via a card or digital payment. Cash tips and transactions without tips were not included in the analysis.

What's the best, worst states for tipping?

The states with the highest tips are:

1. Delaware, tipping 21.5% (This is the second quarter in a row Delaware was on the top.)
2. West Virginia, 20.5%
3. Indiana, 20.4%
4. New Hampshire, 20.4%
5. Kentucky, 20.3%

The states with the lowest tips are:

1. California, tipping 17.3% (This is the second quarter in a row California was on the bottom of the list for tipping.)
2. Washington, 17.8%
3. Nevada, 18.1%
4. Florida, 18.2%
5. Louisiana, 18.4%

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What states have the most, least expensive sandwiches/wraps?

The most expensive sandwiches/wraps are in:

1. Hawaii, $13.37
2. Colorado, $12.72
3. California, $12.66
4. Nevada, $12.64
5. Arizona, $12.20

The least expensive sandwiches/wraps are in:

1. Idaho, $8.92
2. Texas, $9.36
3. Arkansas, $9.73
4. Kansas, $9.88
5. Indiana, $10.09

California minimum wage increase affects others

Toast also looked at how the increase of the California minimum wage for fast-food restaurant employees to $20 per hour on April 1 affected pay for other employees across the state in the food industry. To be covered under the law, employees must work for a fast food restaurant, defined as a restaurant that offers limited or no table service, has 60 or more establishments nationwide and primarily sells food and beverages for immediate consumption.

"Many quick-service restaurants in the state are exempt from this law (including some that may technically be 'fast food restaurants'), though restaurant operators say they will likely need to offer similar rates to remain competitive," Toast reported.

In June, cashiers at quick-service restaurants in California made a median hourly wage of $16.98, according to the report. Average tips for quick-service restaurant employees dipped in California when the legislation went into effect from $4.98 to $4.77 per hour in April 2024, the report said. "However, the trend line for tips per hour is similar to that of the national average, so it's unclear from this data if the legislation had any meaningful effect on tips," the report said.

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays,here.

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