Operations

Some restaurant sales sizzle, others fizzle

Photo: Toast

August 12, 2025

Summer sales have been hot and cold for U.S. restaurants this summer, with some areas seeing significant growth while others struggled, according to Toast's, Restaurant Trends Report. The report, which analyzed aggregated data from nearly 148,000 restaurant locations, also revealed a troubling trend for full-service restaurant staff, with tipping rates hitting a 7-year low.

The analysis compared same-store transaction data from early summer this year to the same period in 2024.

According to the report, 24 states experienced growth in restaurant transaction counts, while 13 were flat and 13 declined.

Summer standouts and struggles

Several cities experienced notable transaction growth, with Naples, Florida, leading the pack with an 8% increase. Other "summer standouts" include the Portland, Maine, area (5%) and Chicago (4%).

Conversely, some cities saw significant declines. Denver (-5%), St. Petersburg, Florida (-4%), and Las Vegas (-3%) experienced the largest drops. The report attributes some of these shifts to factors like weather and tourism trends, noting that Las Vegas is grappling with a decline in international visitors.

Tipping troubles

The report also found that the average tip at full-service restaurants has fallen to 19.1% in the second quarter of 2025, the lowest level Toast has recorded in seven years. This is down from 19.4% in the first quarter of the year. Tips at quick-service restaurants remained flat at 15.8%.

This decline may be influenced by factors such as "tipflation" and "tipping fatigue," as well as rising menu prices due to inflation.

Delaware remains the top-tipping state with an average of 21.4%, while California is at the bottom of the list with an average of 17.2%.