Square Food & Beverage Data Reveals Higher Tipping Rates and Growing "High-Low" Spending Pattern

Tipping rates continue to rise as food and beverage (F&B) spending patterns diversify, presenting a growing opportunity for businesses on both ends of the price spectrum

DISTRIBUTED-WORKFORCE/OAKLAND, Calif. – May 12, 2026 – Square today shared new data insights on consumer F&B spending patterns. Spend variability is on the rise, with consumers deviating from their average spend by more frequently seeking out their favorite affordable spots, while also reserving budget for special, higher-cost meals. Square data shows this price divergence widening in Q1 2026. This “high-low” consumer preference presents opportunities for F&B operators to deepen customer relationships on both ends of the price spectrum. Meanwhile, tipping rates are on the rise across all types of F&B establishments, with bars seeing the highest tip percentage overall.

Key data highlights include:

• Consumer spending variability grew 2.2% year-over-year (YOY) in Q1 2026, a reversal from declines in both 2024 and 2025.
• The share of customers whose dining purchases varied by $100 or more from their average spend increased from 0.50% to 0.52% YOY in Q1 2026.
• Average tip percentages steadily climbed across F&B from 14.85% in Q3 2025 to 14.93% in Q4 2025 to 14.99% in Q1 2026, nearly reaching the 15% mark.
• Bars saw the highest tipping rates at 17.30% in Q1 2026, up from 17.05% in Q4 2025.

Spending variability is on the rise

Spend variability measures how consistently a consumer spends across their visits. In this research, it is calculated as the standard deviation of individual customers’ purchases from their personal average. Low variability looks like a customer who reliably spends $15 every visit, while high variability looks like that same customer spending $8 on a quick lunch several times a week, then $60 on a special-occasion dinner. When variability grows across the population, it signals the “high-low” pattern in action: consumers making more intentional, divergent choices about where and how they spend, rather than dining out at a consistent cadence and price point.

The “high-low” pattern accelerated in Q1 2026. Consumer spending variability grew 2.2% YOY, a notable reversal from contractions in both 2025 (-0.3%) and 2024 (-0.9%). This trend is even more pronounced among high-variance spenders. The percent of customers exhibiting significant spending volatility – those whose purchases vary by $100 or more around their own average – grew from 0.50% to 0.52% year-over-year, accelerating from 2025 when that segment was flat. For F&B sellers, this presents an opportunity: businesses that clearly deliver on value, whether that’s everyday affordability or a positive, memorable experience, are well-positioned to convert intentionality into repeat visits.

“Consumer behavior is always evolving, and the businesses that thrive are the ones who understand and evolve with it,” said James Schonzeit, Head of Food & Beverage at Square. “What our data makes clear is that today’s diner isn’t spending less – they’re spending more thoughtfully. That preference presents a real opportunity for F&B sellers. Square is uniquely positioned to help them see it, act on it, and build the kind of loyal customer base that sustains a business for the long-haul across all points of the price spectrum.”

Affordable and memorable aren’t mutually exclusive

Square’s 2026 Local Economy Report found that 65% of consumers cite affordable prices as their top reason for returning to a local business. In line with the “high-low” pattern, 59% of consumers say they visit a quick-service restaurant (QSR) in their neighborhood several times per week. But value-conscious consumers still want to feel something when they walk through the door. High-quality products (54%) and friendly, reliable service (44%) are the next biggest drivers of return visits. And 56% of consumers say knowledgeable, attentive staff is what makes a local business truly memorable.*

That means there’s a clear, actionable path for operators at every price point: lead with perceived value, and bolster the cost with an experience worth repeating. Seventy-two percent of consumers say they’ll continue shopping at a local business even if prices rise, as long as that increase comes with added value.* That’s a meaningful vote of confidence in businesses that invest in quality and service alongside competitive pricing.

Frequent visitors are your greatest asset

For operators across the price spectrum, the most powerful growth lever is the same: turning visitors into regulars. Square’s 2026 Local Economy Report also found that regular customers (defined as those who visit at least four times a year) generate six times the annual revenue of a one-time visitor. In Atlanta, that multiplier rises to seven times. Regulars also tip 11% more on average than first-time visitors, and Square data shows that regular customer revenue grew 7.67% nationally in 2025, outpacing overall revenue growth of 6.97%.*

The opportunity is especially strong right now. Looking ahead, 24% of consumers plan to shop and dine locally more often throughout 2026.* Consumers aren’t pulling back from local businesses – they’re showing up more. The F&B sellers that invest in making those visits feel personal and rewarding are the ones that will build a loyal base that sustains them through any economic climate.

Tipping rates are on the rise across the board

Across food and beverage, average tip percentages have climbed steadily, from 14.85% in Q3 2025, to 14.93% in Q4, to 14.99% in Q1 2026, nearly reaching the 15% mark. Bars led the way at 17.30% in Q1 2026, up from 17.05% in Q4. Full-service restaurants (FSRs) grew to 14.82%, cafés rebounded to 14.52% after a slight dip in Q4, and QSRs held steady at 14.09% across both quarters. Across nearly every category, the direction is positive – a signal that consumers remain willing to show appreciation when a dining experience feels worth it.

Square research is clear: consumers showing up right now are making intentional choices. For the businesses that meet them with value, enjoyable experiences, and a reason to return, the “high-low” economy isn’t a challenge to navigate – it’s an open door with opportunities to create repeat visitors.

About Square

Square helps businesses turn transactions into connections and businesses into neighborhood favorites.

In 2009, Square started with a simple invention – the first mobile card reader, which changed how the entire financial system thinks about small businesses. Square has since grown into a global business platform helping millions of sellers of all sizes participate and thrive in their communities.

Whether independently run or a global chain, Square understands that sellers succeed when they have the freedom to focus on the experiences that keep customers coming back. From point of sale and payments to online commerce, staff management, cash flow tools, and more, Square brings together the tools sellers need to run and grow on one intelligent platform. For more information, visit squareup.com.

*Per the Square Local Economy Report:
https://squareup.com/us/en/the-bottom-line/reaching-customers/square-local-economy-report

Media contact:
Square Press
press@squareup.com