Square’s Summer Quarterly Restaurant Report: Service Fees Continue to Grow, Wages Stay Above Inflation
Square's latest Quarterly Restaurant Report reveals key trends in the food and beverage industry. Service fees are becoming more common, with 3.7% of restaurant transactions including them in Q2 2024, more than doubling since early 2022. Restaurant worker wages continue to outpace inflation, with average hourly earnings up 4.10% compared to the 2.98% inflation rate as of July 2024.
The report also highlights changes in nightlife activity across major cities. Boston has seen the most significant growth, with late-night transactions increasing from 12% in Q2 2019 to 31% in 2024. Richmond and Philadelphia have also experienced notable rebounds in nightlife activity.
In Washington D.C., restaurant activity has shifted, with increased traffic in developing neighborhoods like Navy Yard and NoMa, while areas east of The Potomac River have seen declines. These trends reflect the impact of remote work, revitalization efforts, and changing urban dynamics on the restaurant industry.
L'ultimo Rapporto Trimestrale sui Ristoranti di Square rivela tendenze chiave nel settore della ristorazione e delle bevande. I costi di servizio stanno diventando sempre più comuni, con il 3,7% delle transazioni nei ristoranti che li include nel secondo trimestre del 2024, più del raddoppio rispetto all'inizio del 2022. I salari dei lavoratori del settore ristorazione continuano a superare l'inflazione, con guadagni orari medi aumentati del 4,10% rispetto al tasso di inflazione del 2,98% a luglio 2024.
Il rapporto evidenzia anche cambiamenti nell'attività notturna nelle principali città. Boston ha registrato la crescita più significativa, con le transazioni notturne che sono aumentate dal 12% nel secondo trimestre del 2019 al 31% nel 2024. Richmond e Filadelfia hanno anche vissuto riprese notevoli nell'attività notturna.
Nel Washington D.C., l'attività ristorativa è cambiata, con un aumento del traffico in quartieri in via di sviluppo come Navy Yard e NoMa, mentre le aree a est del fiume Potomac hanno visto delle diminuzioni. Queste tendenze riflettono l'impatto del lavoro remoto, gli sforzi di riqualificazione e le dinamiche urbane in evoluzione sull'industria della ristorazione.
El último Informe Trimestral de Restaurantes de Square revela tendencias clave en la industria de alimentos y bebidas. Las tarifas de servicio están volviéndose más comunes, con el 3.7% de las transacciones en restaurantes que las incluyen en el segundo trimestre de 2024, más del doble desde principios de 2022. Los salarios de los trabajadores de los restaurantes continúan superando la inflación, con ganancias horarias promedio aumentadas en un 4.10% en comparación con la tasa de inflación del 2.98% a julio de 2024.
El informe también destaca cambios en la actividad nocturna en las principales ciudades. Boston ha visto el crecimiento más significativo, con transacciones nocturnas que han aumentado del 12% en el segundo trimestre de 2019 al 31% en 2024. Richmond y Filadelfia también han experimentado notables repuntes en la actividad nocturna.
En Washington D.C., la actividad restaurantera ha cambiado, con un aumento del tráfico en vecindarios en desarrollo como Navy Yard y NoMa, mientras que las áreas al este del río Potomac han visto declives. Estas tendencias reflejan el impacto del trabajo remoto, los esfuerzos de revitalización y la dinámica urbana cambiante en la industria restaurantera.
스퀘어의 최신 분기 레스토랑 보고서는 식음료 업계의 주요 트렌드를 보여줍니다. 서비스 수수료가 점점 더 일반화되고 있으며, 2024년 2분기 레스토랑 거래의 3.7%가 이러한 수수료를 포함하고 있어, 2022년 초에는 두 배 이상 증가했습니다. 레스토랑 근로자의 임금은 인플레이션을 초과해 증가하고 있으며, 평균 시급은 2024년 7월 기준으로 2.98%의 인플레이션율에 비해 4.10% 증가했습니다.
보고서는 또한 주요 도시의 야간 활동 변화도 강조합니다. 보스턴은 가장 큰 성장을 경험했으며, 야간 거래가 2019년 2분기 12%에서 2024년 31%로 증가했습니다. 리치몬드와 필라델피아도 야간 활동에서 주목할 만한 반등을 보였습니다.
워싱턴 D.C.에서는 레스토랑 활동이 변화하였고, 네이비 야드와 노마 같은 개발 중인 지역에서 유입이 증가하는 반면, 포토맥 강 동쪽 지역은 감소세를 보였습니다. 이러한 트렌드는 원격 근무, 재활성화 노력 및 변화하는 도시 역학이 레스토랑 산업에 미치는 영향을 반영합니다.
Le dernier rapport trimestriel de Square sur les restaurants révèle des tendances clés dans l'industrie de la restauration et des boissons. Les frais de service deviennent de plus en plus courants, avec 3,7 % des transactions de restaurant les incluant au deuxième trimestre 2024, soit plus du double depuis début 2022. Les salaires des travailleurs de la restauration continuent de dépasser l'inflation, avec des gains horaires moyens en hausse de 4,10 % par rapport au taux d'inflation de 2,98 % en juillet 2024.
Le rapport met également en lumière les changements dans l'activité nocturne dans les grandes villes. Boston a connu la plus forte croissance, avec des transactions tard dans la nuit passant de 12 % au deuxième trimestre 2019 à 31 % en 2024. Richmond et Philadelphie ont également connu des rebonds notables dans l'activité nocturne.
À Washington D.C., l'activité des restaurants a changé, avec une augmentation du trafic dans des quartiers en développement comme Navy Yard et NoMa, tandis que les zones à l'est du fleuve Potomac ont enregistré des baisses. Ces tendances reflètent l'impact du télétravail, des efforts de revitalisation et des dynamiques urbaines en mutation sur l'industrie de la restauration.
Der aktuelle Quartalsbericht von Square über Restaurants offenbart wichtige Trends in der Lebensmittel- und Getränkeindustrie. Servicegebühren werden immer häufiger, wobei im 2. Quartal 2024 3,7% der Restauranttransaktionen solche Gebühren enthalten, was mehr als eine Verdopplung seit Anfang 2022 bedeutet. Die Löhne der Restaurantmitarbeiter übertreffen weiterhin die Inflation, mit einem durchschnittlichen Stundenlohn, der im Vergleich zur Inflationsrate von 2,98% im Juli 2024 um 4,10% gestiegen ist.
Der Bericht hebt auch Veränderungen in der Nachtleben-Aktivität in großen Städten hervor. Boston hat das signifikanteste Wachstum verzeichnet, mit einem Anstieg der nächtlichen Transaktionen von 12% im 2. Quartal 2019 auf 31% im Jahr 2024. Richmond und Philadelphia haben ebenfalls bemerkenswerte Erholungen in der Nachtleben-Aktivität erlebt.
In Washington D.C. hat sich die Restaurantaktivität verlagert, mit einem Anstieg des Verkehrs in sich entwickelnden Stadtteilen wie Navy Yard und NoMa, während die Gebiete östlich des Potomac River Rückgänge verzeichnet haben. Diese Trends spiegeln die Auswirkungen von Remote-Arbeit, Revitalisierungsgegenständen und sich verändernden urbanen Dynamiken auf die Restaurantindustrie wider.
- Service fees implementation has more than doubled since early 2022, potentially increasing revenue for restaurants
- Restaurant worker hourly pay growth (4.10%) continues to outpace inflation (2.98%) as of July 2024
- Nightlife activity in cities like Boston, Richmond, and Philadelphia has exceeded pre-pandemic levels
- Increased restaurant activity in developing Washington D.C. neighborhoods like Navy Yard and NoMa
- Rate of wage growth for restaurant workers has declined significantly from its 2022 peak
- Signs of a softening labor market with unemployment ticking up and increased layoffs
- Significant declines in restaurant activity observed east of The Potomac River in Washington D.C.
Insights
The growing trend of restaurant service fees is a double-edged sword for the industry. While it helps offset rising operational costs, it may impact customer perception and spending habits. The doubling of service fee implementation since 2022 to
The continued wage growth above inflation (
The resurgence of nightlife in cities like Boston, Richmond and Philadelphia presents opportunities for restaurants to capitalize on extended hours. However, this shift may require adjustments in staffing and inventory management to meet the changing demand patterns.
The implementation of service fees by restaurants is a strategic move to improve profit margins without directly increasing menu prices. However, this approach may face consumer resistance and potentially impact customer loyalty and turnover rates.
The wage growth outpacing inflation is a concern for restaurant profitability. While it's positive for employee retention, it puts pressure on already thin margins. Restaurants may need to explore automation or menu engineering to offset these costs.
The shift in dining patterns, particularly the growth of suburban and neighborhood restaurants in areas like Washington D.C., suggests a need for location strategy reassessment. Businesses may need to consider relocating or opening new branches in emerging high-traffic areas to capitalize on changing consumer behaviors.
Square data reveals that service fees are growing as more restaurants implement the add-on charge (Graphic: Square)
How common are restaurant service fees?
Service fees, a percentage-based or fixed amount added to a transaction total that is different from a surcharge, are seen by sellers as a way to help offset certain operational or overhead costs across various areas of the business. While they are still relatively uncommon, Square found that they are growing as more restaurants implement the add-on charge. In Q2 2024, about
“Cafe Venetia is an espresso bar and our philosophy has been European from the start. Our business uses a service fee to ensure we can keep our European operating model and support our team’s growth. We ensure our service fees are clearly displayed on all our menus to avoid confusion from customers,” said Leigh Biddlecome, Head of Public Relations at Cafe
“Margins are slimmer than ever for restaurants, and sellers have needed to find ways to offset higher costs,” said Ming-Tai Huh, Head of Restaurants at Square. “We know restaurants use service fees for many reasons like managing unpredictable shifts in their operations or overhead, maintenance, and administrative costs, among others. As a restaurant owner, it’s important to be clear and transparent about these fees so customers can understand dining costs and what fees are being allocated for.”
Wage growth continues to be higher than inflation
According to the Square Payroll Index, when analyzing restaurant worker hourly pay (including base wages, tips, and overtime), yearly growth continued to be higher than the rate of inflation. Even though restaurant workers' pay growth has slowed since COVID highs, average hourly earnings were up
“The result is good news for restaurant workers, but we are starting to see some warning signs of a softening labor market. The rate of wage growth has declined significantly from its 2022 peak, and unemployment, although historically low, has recently ticked up, alongside layoffs,” said Ara Kharazian, Square Research Lead and principal developer of Square Payroll Index.
Cities across the country are continuing to experience strong nightlife. Square analyzed the share of in-person restaurant and bar transactions between 7 pm and 4 am, and found that while
A similar trend can be observed in
Areas of
Following COVID-19,
In
About Square
Square makes commerce and financial services easy and accessible with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services and banking products, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. For more information, visit www.squareup.com.
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Source: Block, Inc.
FAQ
What percentage of restaurant transactions included a service fee in Q2 2024 according to Square's report?
How does the wage growth for restaurant workers compare to inflation as of July 2024?
Which city has seen the most significant growth in nightlife activity according to Square's data?
How has restaurant activity changed in Washington D.C. following the COVID-19 pandemic?
