As the FIFA World Cup unfolds across multiple U.S. host cities, some restaurants are opting to add automatic service charges amid concerns that international visitors may not be accustomed to American tipping customs. The tournament, which began June 17 and runs through July 19, has prompted varied responses across the restaurant industry depending on location and anticipated customer demographics.

In major international hubs like Dallas and Houston, where international travel is a familiar aspect of daily business, restaurant leaders say local clientele and visitors generally understand the culture of tipping. Emily Williams Knight, president and CEO of the Texas Restaurant Association, noted that these cities already attract a significant global audience, so establishments there assume most visitors are aware of U.S. gratuity expectations. Similar sentiments were expressed by Stephen Clark of the Massachusetts Restaurant Association, who pointed out that Boston is an established international destination where travelers typically plan well in advance and familiarize themselves with local customs, including tipping.

However, in cities expecting large and potentially less prepared tourist crowds, some restaurant owners are taking a precautionary approach by instituting mandatory service charges, also referred to as automatic gratuities or “auto grats.” Teneshia Murray, owner of T’s Brunch Bar in the Atlanta area, has increased her standard service charge from 18 percent to 20 percent and staffed up by hiring 50 additional employees to handle the influx during the eight World Cup matches hosted in the city. Murray explained that the adjustment aims to maintain employee morale and financial stability amid uncertainties about tipping behaviors from international customers. She plans to retain the increased service charge even after the tournament concludes.

The implementation of service charges is causing mixed reactions among industry workers and patrons. Some tipped employees argue that auto gratuities can reduce their overall earnings since these charges are treated as restaurant revenue rather than direct tips, potentially leading to lower wages. Jason Evans, a bartender in Philadelphia, voiced his preference for traditional tipping methods, emphasizing his willingness to tip generously and expressing frustration over automated fees that limit discretion.

The challenge for restaurant operators lies in balancing labor protections and customer experience while navigating complex regulatory frameworks. Automatic service charges are subject to sales taxes, must be factored into employee wage calculations including overtime, and do not qualify for certain federal tip-related tax benefits. Associations in Pennsylvania and Missouri have recommended that venues in their World Cup host cities—Philadelphia and Kansas City—adopt service charges at least temporarily to avoid lost wages and reduce disputes over tipping practices. Meanwhile, restaurant groups in states such as Massachusetts, Florida, Georgia, Texas, and New York have abstained from issuing formal guidance on the matter.

Ben Fileccia of the Pennsylvania Restaurant and Lodging Association described the decision as a “numbers game,” weighing the proportion of international customers who may not tip appropriately against the overall impact on a restaurant’s finances. Given that servers in the U.S. often rely on tips to supplement base wages that can be as low as $2.13 per hour under federal law, the potential mismatch between global tipping norms and American expectations remains a focal concern during the World Cup’s peak dining periods.

Industry groups continue to caution that transitioning to automatic service charges can create administrative burdens related to payroll, taxes, and compliance with labor laws. The Independent Restaurant Coalition recently alerted its members to these issues, highlighting that auto gratitudes disqualify workers from certain federal tax credits and complicate calculations for minimum wage and overtime pay.

As cities welcome visitors from around the world, restaurants are carefully weighing how best to manage the intersection of customer service standards, employee compensation, and regulatory complexity during one of the year’s busiest global sporting events.