Ahead of the 2026 North and Central America World Cup, restaurants in the United States, known as the "country of tips," are moving to introduce service charges in anticipation that foreign tourists may not tip. During the World Cup, they plan to effectively institutionalize tips—previously left to customers' discretion—as so‑called "auto gratuity" service fees.
According to the Washington Post (WP) on the 10th (local time), the Pennsylvania and Missouri restaurant associations are recommending that member restaurants in the host cities of Philadelphia and Kansas City add a service charge for all or part of the World Cup period from the 11th through July 19.
WP said, "This guidance is meant to prevent situations where foreign tourists do not leave tips," adding, "It is also intended to reduce awkward situations where staff have to explain American tipping culture one by one, and to cut delays in service at crowded venues during the World Cup."
Debate over service charges has grown ahead of the World Cup because an increase in foreign tourists unfamiliar with tipping could reduce employees' revenue. If more overseas guests unused to tipping arrive, it could directly lead to a decline in U.S. restaurant workers' revenue.
In most countries except the United States and some European nations, service charges are included in the bill, making tips often optional. It is common to add a tip only when the service is particularly satisfying.
In contrast, the United States has many tipped workers whose federal base minimum wage is only $2.13 an hour, making tips effectively a core component of employee pay. Tips, originally a token of appreciation for good service, have solidified into a kind of wage system borne by consumers.
Daniel McLaughlin, who runs a restaurant in Philadelphia, said about half of his 50 employees are tipped staff, and to protect them he decided to add a 20% service charge to all checks for the three weeks when World Cup matches are held.
McLaughlin said, "It would be really unfortunate if tipped employees received no benefit even when the place is incredibly busy." The hourly wage for tipped staff at his restaurant is reportedly in the $25–$45 range.
Restaurant operators in the 11 U.S. cities hosting World Cup matches are weighing similar questions about whether to introduce service charges. They are reviewing local, state, and federal regulations; potential pushback from regulars; and the actual scale of inbound foreign tourists, WP reported.
However, there is considerable legal controversy over service charges that effectively make tipping mandatory. Unlike tips, which are considered employees' share, service charges are classified as restaurant sales and are subject to local government tax and liquor tax, among other sales taxes. Employers must also calculate employees' wages including the service charge.
In response, the Independent Restaurant Coalition (IRC) sent a newsletter to tens of thousands of members earlier this month explaining not only issues of sales taxes and overtime pay when imposing service charges, but also that auto gratuities are not eligible for the tip tax credit under the Federal Insurance Contributions Act (FICA).
Erika Polmar, secretary general of the IRC, said, "Among owners who had considered introducing service charges, many responded, 'I thought this was obviously the right choice, but now I'm not sure. I think I need to talk to my accountant.'"