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Will New York’s Luxury Chip Year End?

As New Yorkers dine in restaurants and take the subway, another aspect of city life is returning to normal. That is a hint.

The pandemic turned the New Yorker into a millionaire, especially in the first months of its closure.

Data on millions of credit card transactions that began in mid-March 2020 now show that as the city reopens, the average tip for takeaways, deliveries, drinks and other restaurant meals is slow, though. It is steadily returning to the pre-pandemic level.

We obtained data on tipping habits for New Yorkers from two app-based payment services. square And toast, And interviewed restaurant employees, bartenders, owners, baristas, and delivery drivers in the city.

Together, these sources are telling a similar story.

Chips soared when the city was closed. Celebrated with an ovation every night..

Owner Dan Demarti OreaA Mediterranean restaurant in Brooklyn’s Fort Greene district said the beginning of the pandemic coincided with the only notable change in chips he saw in the restaurant’s 15-year history.

“I think people were very generous,” he said. “I know they were.” (On average, Olea’s chips returned to about 20%, he said.)

This increase is in line with what we know. Why people give tips In the first place. Studies have shown that you can tip to express your gratitude (why it might have looked big during the worst of the pandemic). Comply with social norms. To reward good service. To impress others; otherwise you will feel guilty.

Barista Colin Paul Missing cup A coffee shop in Hamilton Heights, northern Manhattan, says he noticed that patrons rarely tip $ 20 for a cup of coffee.

“They were sick and happy that we were still open,” he said.

Questionnaire Performance Many Americans give tips because they recognize that food service employees rely on tips for their livelihoods. Ofer Azar,Professor Negev Ben Gurion University A person who has done research on chips in the United States and Israel. Those jobs were more risky last year.

“It can be perceived as a fair and equitable risk allowance,” he said. Mike Lin, Professor of Services Marketing, Cornell University Hotel Management Graduate School..

If the tip increase was in the form of a risk allowance, it could decrease if the risk as a service worker is perceived to be lower than in the spring. In 2020.

“The less risk you have, the less you have to pay,” Lin said. “If the hint returns to normal, I think it’s a reasonable sign that recognition is back to normal.”

Barista, Nick Drake Baba cool At Fort Green, we noticed an increase again when the pandemic began and during the second wave of the virus, which began in the city in late 2020.

“Now I think we’re retreating,” he said. “People don’t hate restaurant employees.”

Check government stimulus, First sent out It may also have played a role in April 2020.

Van Luis Herrera, a bicycle food messenger in Manhattan, pointed to his fellow deliverymen: “When the government sends us salaries and help, it’s very easy for us. I did. ” “People were paying like crazy.”

Informal and often cash-based practices like chips do not have a complete or completely representative data source. The data shown here reflects millions of orders, but does not necessarily represent orders for restaurants and bars anywhere in the city, or the entire credit card transaction. (Brooklyn and Manhattan are probably overrated.)

Square and Toast data reflect tips at “quick service” restaurants, and each company’s data shows slightly different types of orders and transactions. However, the trends derived from the data were consistent with the stories of most food service workers contacted this week.

There was an exception.

Bartender Shira Chester Judy’s At Sunset Park in Brooklyn, the tip rate remains high even after the city reopens. “People are tired of staying at home,” she said. According to her, her tip has always been close to 20%, up from about 15% before the pandemic.

The data also suggest the possibility of long-term changes in behavior. While the average chips are declining, Square’s data show that the percentage of orders receiving some chips, even small chips, increased with the start of the pandemic and hasn’t changed much since then. is showing.

The pandemic is also conversation about Norms and tips It can ultimately affect the city-wide average.

“Not everything will return to its pre-pandemic state,” Hazard said.

Will New York’s Luxury Chip Year End?

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