March 06, 2025 BOSTON, MA — Toast, the all-in-one digital platform built for restaurants, released its Q4 2024 Restaurant Trends Report, providing insight into the state of the U.S. restaurant industry through an analysis of aggregated data from selected cohorts of restaurants and in select U.S. cities on the Toast platform, which serves approximately 134,000 restaurant locations as of December 31, 2024.
Key takeaways from Q4 2024:
- Same-store catering transactions increased 26% YoY, and ticket size increased 9% YoY
- Tampa experienced a 6% decrease YoY in overall transactions due to three major storms that hit the area between August and October
- Chicago and Philadelphia both increased overall transactions by 3% YoY
- Median base hourly wages for back-of-house employees at full-service restaurants were approximately $16.98 in December 2024, which is about 2.5% higher than in December 2023
- For the third quarter in a row, tips at full-service restaurants averaged 19.3%
*Year-over-Year (YoY) compares Q4 2024 to Q4 2023.
Holiday catering orders continue to rise
The “busy season” for holiday catering boosts growth during off-peak days. Catering delivered some serious wins in 2024. The number of same-store catering transactions increased 26% in Q4 2024 compared to Q4 2023, while ticket size increased by 9%.
Zooming out, the year’s final quarter is the busiest for catering orders, driven mostly by mid-week orders ahead of holidays. With the pre-holiday rush in full swing, the weeks before Christmas and Thanksgiving were the busiest times for catering orders, a similartrend to last year.
Because these orders tend to come in during weekdays, it’s a great opportunity for restaurants looking to supplement their revenue when their dining rooms are less full. About 37% of all catering orders in 2024 occurred in the last three months.
How Tampa restaurants are recovering after hurricane season
Back-to-back hurricanes in late 2024 disrupted Tampa restaurants, slowing transactions.
Restaurant transaction growth in Q4 2024 varied in the 20 cities that Toast explored, with the most dramatic slowdown occurring in Denver (-9%) and Tampa (-6%). Axios reports that restaurants in Denver have struggled to keep up in recent years, with experts pointing to new wage laws, increased rent, cost-conscious diners, and shrinking profit margins.
As for Tampa, growth in Q4 was likely hindered by three hurricanes that hit the Tampa Bay area in quick succession, leaving hundreds of thousands without power. Storms Debby, Helene, and Milton landed between August and October 2024 and significantly impacted the area.
On the flip side, Philadelphia and Chicago grew transactions by 3% in Q4 2024 compared to Q4 2023.
The state of restaurant wages and tipping in America
Back-of-house wages for full-service restaurant employees rose slightly, while tips at full-service restaurants remained flat.
Toast analyzed hourly wages for back-of-house restaurant workers at full-service Toast restaurants utilizing Toast Payroll and Team Management.
The median base hourly wages for back-of-house employees at full-service restaurants — from dishwashers to line cooks — were approximately $16.98 in December 2024, which is about 2.5% higher than in December 2023 and 6% higher than in December 2022.
Depending on local laws, these employees might not be eligible for tips or gratuities. Some restaurants impose percentage-based fees on their menus to help compensate these employees when business gets busy. For the third quarter, tips at full-service restaurants averaged 19.3%, while tips at quick-service restaurants, where guests may be less inclined to tip due to the difference in service, averaged 15.8%. This is down from a pandemic high of 16.5% in 2021.
There are plenty of reasons why people tip or may choose not to. Tips leveling off at restaurants is likely due to a combination of factors, including prices, people being more conscious about their discretionary spending, changes in minimum wage laws, and being asked to tip at more establishments than previously.
*Insight reflects a snapshot of all catering orders in 2024 vs. a cohort of same-store restaurants onthe platform since Q4 2023.
About the Restaurant Trends Report:
The Restaurant Trends Report, powered by Toast, uncovers key trends across the restaurant industry through aggregated sales data from a selection of cohorts of restaurants on the Toast platform, which has approximately 134,000 locations as of December 31, 2024. This information is provided for general informational purposes only, and publication does not constitute an endorsement. Toast does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Individual results may vary. Toast does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation. The Restaurant Trends Report is not indicative of the operational performance of Toast or its reported financial metrics.
About Toast
Toast [NYSE: TOST] is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. Toast provides a comprehensive platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management. We serve as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Toast helps restaurants streamline operations, increase revenue, and deliver amazing guest experiences. For more information, visit www.toasttab.com.
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