Toast Data: Coffee and Tea Trends in All 50 States, New Restaurant Wage Data, and Breakfast Performance

Rhea-AI Summary

Toast's Q1 2024 Restaurant Trends Report reveals key insights into U.S. restaurant industry trends, focusing on coffee and tea pricing, breakfast transactions, and restaurant employee wages. Average prices in Q1 2024 show $3.08 for regular coffee, $5.14 for cold brew, $5.46 for lattes, and $3.74 for tea. Tea outperformed regular coffee in 30 states. Saturday breakfast transactions rose 6% YoY, while Monday transactions fell 4% YoY. Median hourly wages for servers and bartenders increased to $9.48 in Chicago and $8 in Washington, D.C. Delaware led in tipping generosity at 22.1%. Prices were highest in Hawaii and California, with Hawaii averaging $4.89 for regular coffee. The report is based on data from 112,000 restaurant locations on the Toast platform.

Positive

• Saturday breakfast transactions rose 6% YoY, indicating potential growth in weekend dining.
• Median hourly wages for servers and bartenders increased in major cities, up to $9.48 in Chicago and $8 in Washington, D.C.
• Delaware showed high tipping generosity with an average of 22.1%, which could indicate positive customer service experiences.
• The Toast platform's adoption by 112,000 restaurant locations as of March 31, 2024, demonstrates the company's extensive reach and influence in the restaurant industry.

Negative

• Monday breakfast transactions decreased by 4% YoY, suggesting a potential decline in early-week dining.
• High coffee prices in states like Hawaii ($4.89) and California ($3.88) could deter customers and affect sales negatively.
• Despite wage increases, some states still report relatively low median wages for servers and bartenders, potentially indicating ongoing labor cost challenges.

The Q1 2024 Restaurant Trends report examines coffee and tea trends in all 50 states, breakfast transactions in 20 U.S. cities, and restaurant employee wage data.

BOSTON--(BUSINESS WIRE)-- Toast (NYSE: TOST), the all-in-one digital platform built for restaurants, today announced its Q1 2024 Restaurant Trends Report, providing insight into the overall 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 112,000 restaurant locations as of March 31, 2024. Read more details about our methodology below.

Key takeaways:

• In Q1 2024, guests across the U.S. paid an average of $3.08 for a cup of regular coffee, $5.14 for cold brew, $5.46 for lattes, and $3.74 for tea.¹
• Tea is more popular than regular coffee in 30 states.²
• Saturday breakfast transactions grew 6% YOY (year-over-year), and Mondays dipped 4% YOY.³
• In Chicago, servers and bartenders at full-service restaurants earned a median hourly wage of $9.48 in Q1 2024, which is up from $9.00 in Q1 2022. ⁴
• In Washington, D.C., servers and bartenders at full-service restaurants earned a median wage of approximately $8 in Q1 2024, up from $5.05 in Q1 2022.⁴
• In April, quick-service restaurant workers’ hourly wages in California increased 4% month-over-month, from $17 to $17.75.⁵
• Delaware was the most generous state overall for tipping, with an average total tipping percentage of 22.1%.⁶

Menu insights for the Restaurant Trends Report are powered by a Toast benchmarking tool, which leverages an AI-based classification tool and allows users to compare restaurant and menu category performance against aggregated data from Toast restaurants.

The price of coffee, tea, cold brew, and lattes in all 50 states

Whether it’s a hot cup of joe, a delicately crafted latte, or a comforting cup of tea, Americans are known for their love of caffeinated beverages. But in recent months, there’s been an increased focus on the price of coffee in particular, as extreme weather has affected harvests and sent global coffee prices soaring, according to the Wall Street Journal.

To understand how much Americans pay per cup, Toast analyzed the average price of regular coffee, cold brew, lattes, and tea in each U.S. state. On average, consumers paid $3.08 for a cup of regular coffee, $5.14 for cold brew, $5.46 for lattes, and $3.74 for tea in Q1 2024.

Hawaii had the most expensive coffee in the country, with an average price of $4.89 — approximately 59% higher than the national average. California was the second-most expensive, averaging about $1 less than Hawaii at $3.88, which is 26% higher than the national average. On the other end of the spectrum, the average price for a cup of coffee in Nebraska in Q1 2024 was just $2.12 — 31% lower than the national average.

Toast noticed similar trends with cold brew and tea, with Hawaii and California pushing the top end of pricing, but Alaska bumped California out of the number two spot for the most expensive latte at $6.09. What is the average price of a latte in Hawaii? A whopping $6.69. The sky-high prices of lattes in Hawaii and Alaska are likely driven by the price of milk and the remoteness of the two states. Prices for milk in these states are among the highest in the nation, and shipping goods such as espresso to these regions only increases those prices.

View the full report on the Toast Newsroom.

Methodology:

1Toast analyzed transactions at restaurants on the Toast platform from January 1, 2024, to March 31, 2024, to determine the price of drinks labeled “regular coffee,” “cold brew coffee,” “latte,” and “tea.” Drinks in the “tea” category include specialty, iced, black, herbal, and green tea. Milk tea is not included in this analysis.

2Toast analyzed transactions on the Toast platform from April 28, 2023, to March 31, 2024, to determine the popularity of drinks labeled “regular coffee,” “cold brew coffee,” “iced coffee,” “latte,” “espresso,” “cappuccino,” “mocha” “Americano,” “milk, tea” and “tea.” Drinks in the “tea” category include specialty, iced, black, herbal, and green tea. Analysis dates were increased beyond Q1 to remove seasonality ordering preferences.

3Toast analyzed restaurant breakfast transactions in 20 cities on the Toast platform from 5 a.m. and 11 a.m. in Q1 2023 compared to Q1 2024. Toast used a cohort of same-store restaurants on the platform since Q4 2022.

4Data from applicable same-store full-service restaurants on the Toast platform from January 1, 2022, to March 31, 2024. Salaried, overtime, and bonus wages are not included. Paid time off is not included. Servers and bartenders included in the analysis worked a minimum of five hours in the payroll period and received tips greater than zero. Servers and bartender job titles included a version of the words "bartender," "server" or "wait." Hourly wages do not include tips. Base wages are the total wages divided by the number of hours. Tips per hour are the total reported tips divided by the number of hours.

5Data from applicable same-store quick-service restaurants on the Toast platform from January 1, 2022, to March 31, 2024. Salaried, overtime, and bonus wages are not included. Paid time off is not included. Employees included in the analysis worked a minimum of five hours in the payroll period. Employees who received tips were included, but tips were not included in the analysis. Base wages are the total wages divided by the number of hours.

6Data from applicable full-service restaurants on the Toast platform where a tip was added to the order via a card or digital payment from January 1, 2022, to March 31, 2024. Cash tips are not included in the analysis.

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 112,000 locations as of March 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606358285/en/

Media: media@toasttab.com

Investors: IR@toasttab.com

Source: Toast

FAQ

What is the average price of regular coffee in Q1 2024?

In Q1 2024, the average price of regular coffee in the U.S. was $3.08.

How much did cold brew cost on average in Q1 2024?

The average cost of cold brew coffee in Q1 2024 was $5.14.

Which state had the highest average price for lattes in Q1 2024?

Hawaii had the highest average price for lattes at $6.69.

What was the YoY change in Saturday breakfast transactions in Q1 2024?

Saturday breakfast transactions grew 6% YoY in Q1 2024.

How did Monday breakfast transactions change YoY in Q1 2024?

Monday breakfast transactions dipped by 4% YoY in Q1 2024.

What were the median hourly wages for servers and bartenders in Chicago in Q1 2024?

Servers and bartenders in Chicago earned a median hourly wage of $9.48 in Q1 2024.

How did restaurant worker wages in Washington, D.C. change from Q1 2022 to Q1 2024?

In Washington, D.C., restaurant worker wages rose from $5.05 to approximately $8 between Q1 2022 and Q1 2024.

Which state was the most generous in tipping in Q1 2024?

Delaware was the most generous with an average tipping percentage of 22.1% in Q1 2024.