Jun 11, 2026
Scored a ticket for a World Cup match in a U.S. city? Get ready for potential restaurant service charges.
Restaurant owners in 11 U.S. cities hosting World Cup matches are reportedly grappling with the decision to add service charges onto customers’ bills, the Washington Post reported. These surcharges are typically used to cover service-related costs at a restaurant or bar, and can bolster wages and benefits for tipped staff as well.
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Restaurant associations in Missouri and Pennsylvania recommended earlier this year that restaurants in Kansas City and Philadelphia add an automatic 20% gratuity onto their checks for the duration of the World Cup, which is scheduled to run for just over a month from June 11 to July 19.
In the U.S., tipped workers can earn well below the $7.25 federal minimum wage, which hasn’t been raised since 2009. In some cases, restaurant workers earn $2.13 an hour and rely on tips for an adequate living.
The Post spoke with Daniel McLaughlin, the owner of a 140-seat Mexican restaurant called Mission Taqueria in Philadelphia. McLaughlin has put in place a 20% service charge to ensure that his tipped staff — or half of the restaurant’s 50 employees — don’t experience a sharp drop in income from international customers who may not be acquainted with the common U.S. habit of tipping after food and drinks.
“It would be a real bummer for it to be super busy and for our tipped employees to not benefit from that in any way,” McLaughlin told the Post. “We just want to make sure all of our tipped employees are seeing the same benefit as the business, hopefully.”
Service charges, though, don’t always go entirely to restaurant staff. They belong to the employer, who can then choose how to spend it. In addition, these charges are subject to state and local sales taxes since they count as restaurant revenue.
Tipping differences abroad
In many European countries, tipping isn’t the norm because most servers earn enough money without them.
Travel guru and famous guidebook writer Rick Steves once illustrated the stark differences between Europe and the U.S. on their tipping culture. He observed that in north and eastern Europe, the service charge is typically included in menu prices. It varies along southern Europe since some service establishments will include it in the menu price, while others add it to the check.
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“Servers are paid a living wage, and tips are considered a small bonus — to reward great service or for simplicity in rounding the total bill to a convenient number,” Steves wrote. “In many countries, five percent is adequate and 10 percent is considered a nice tip. Locals just leave coins on the table, round up, or often don’t tip at all.”
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Tipmania in America?
Beyond the World Cup, service charges are more common throughout an American restaurant industry that’s long accustomed to slim profit margins.
The aftermath of the pandemic multiplied operating challenges among restaurants and bars. Inflation lingered while many restaurant owners at the time reported being unable to hire enough servers and bartenders to meet customer demand.
In addition, states and cities continue hiking minimum wages well above the federally-mandated $7.25 an hour. In fact, 21 states are set to raise their hourly wages in 2026.
A spokesperson for the National Restaurant Association told the Guardian in 2023 that 15% of restaurants reported adding service charges to the final bill.
A growing number of Americans, though, believe tipping culture has gotten out of hand. According to a Wallethub survey released in March, two in five Americans endorsed banning tips outright, while 64% of Americans believe employers are substituting tips instead of paying an adequate wage.
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Joseph Zeballos-Roig is a policy and politics journalist based in Washington D.C with a focus on economics. He is experienced in connecting the significance of events in the capital to the lives of everyday Americans whether its taxes, tariffs, interest rates or federal programs.
