REPORT: Service Fees Continue to Grow, Wages Stay Above Inflation
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In Q2 2024, Square reported that approximately 3.7% of restaurant transactions included a service fee, a more than 100% increase since early 2022. At Cafe Venetia, service fees support their European operating model and team growth. The Square Payroll Index showed a 4.10% increase in average hourly earnings for restaurant workers compared to the inflation rate of 2.98% as of July 2024. Nightlife in Boston saw transactions rise from 12% to 31% late night between Q2 2019 and 2024, while Richmond's late-night transactions reached 35%, and Philadelphia's hit 31%. Washington D.C. saw more restaurant activity in developing neighborhoods such as Navy Yard and NoMa.
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