愛污传媒

Business

    • Is 'tip-flation' here to stay? This financial expert thinks so

    Share

    In recent years, Canadians have witnessed a subtle but significant shift in the number of businesses requesting tips. Following COVID-19-related lockdowns, as restaurants and other public spaces reopened, many have said they noticed an increase in requests from establishments that didn鈥檛 normally ask for tips.

    For many consumers, this has led to 鈥,鈥 a feeling of exhaustion from being asked to tip more money at an increasing number of businesses. 

    The surge in tipping prompts may also disrupt the delicate balance some customers must strike between showing appreciation for a service and maintaining their budget. I鈥檒l explore a few of the reasons behind this trend, as well as its implications and whether it鈥檚 here to stay.

    THE ORIGINS OF 'TIP-FLATION'

    Canada has always had a strong tipping culture, and it鈥檚 common for customers to leave a gratuity for:

    • Restaurant and bar service
    • Valet service
    • Cleaning services
    • Taxi and transportation services

    Prior to the COVID-19 pandemic, the standard tip for table service across the country, for example, was 15 per cent. However, a survey conducted by Restaurants Canada in April 2022 showed Canadians were tipping an average of 17.6 per cent of their bill.

    According to the same survey, 44 per cent of respondents said they were tipping a higher percentage of their bill when dining at restaurants in person, compared to before the pandemic.

    Referred to as "tip-flation," this phenomenon has also seen an increasing number of businesses, from local cafes to nail salons and even fast-food restaurants, implement automated tip prompts at the counter, some running as high as 30 per cent.

    A more recent survey conducted by the Angus Reid Institute earlier this year shows that more than 80 per cent of 1,610 respondents believe 鈥渢oo many places are asking for tips.鈥 Based on the same survey, only 13 per cent of participants believe the quality of service has increased.

    This comes at a time when inflation remains high in Canada. Although the annual rate currently sits at 3.8 per cent, it is still above the two per cent target set by the Bank of Canada. Experts say the elevated cost of living has likely contributed to the rise in requests for tips.

    WILL TIP REQUESTS BECOME MORE WIDESPREAD?

    In Canada, tipping is considered voluntary and carries no legal obligation. But customers may face undue pressure to leave a tip as and stay on top of their bills.

    At this point, so many businesses have incorporated tip prompts into their payment systems that they can seem hard to avoid.

    However, a growing number of restaurants are experimenting with a service-included business model, where the cost of service is already included in prices listed on the menu. This removes the need for tipping and would see staff members receive higher wages.

    . In a telephone interview in September, owner Jennifer Low told CTVNews.ca that all her employees earn a wage of at least $23.15 per hour, explaining that staff members don鈥檛 argue over how tips are split and customers aren鈥檛 surprised when they receive their bills.

    The shows 59 per cent of participants said they would prefer if Canada moved towards a service-included payment model.

    POTENTIAL FOR UNINTENDED CONSEQUENCES

    While those on the receiving end of gratuities see an obvious benefit, the increase in tip requests could put customers in an awkward position. Those who may have only been used to tipping waiters and bartenders during a night out are now being asked to tip for their morning coffee, afternoon lunch, and more.

    The previously mentioned Angus Reid survey showed two concerning pieces of data:

    • 78 per cent of participants said they believe tipping is no longer about 鈥渟howing appreciation for a job well done鈥
    • 73 per cent of respondents believe that tips exist as 鈥渁 way for employers to underpay their employees鈥

    These responses could imply that the majority of customers are unhappy about receiving requests to tip more money, instead viewing these prompts as a way for businesses to exploit both customers and their employees.

    In the short term, the increase in tip requests could be positive, allowing hard-working waiters, valets, cleaners, baristas, and other service providers to take home more money.

    However, there could also be some negative long-term consequences as once-loyal customers tire of the ever-increasing requests for money.

    Tensions could form between customers and the businesses they frequent, causing them to visit these establishments less often, which could negatively impact the workers who rely on regular customers and their tips to make ends meet.

    As many continue to struggle with the high cost of living, this could lead some Canadians to revisit their budget and cut back on unnecessary spending. Tipping for a coffee or sandwich that could be easily made at home usually falls into this category.

    SHOULD YOU TIP BASED ON YOUR INCOME?

    Traditionally, the amount you tip isn鈥檛 based on your personal income, but the pre-tax cost of the service provided.

    A fair tip typically ranges from 15 to 20 per cent. For example, a $100 restaurant bill would garner a tip of $15 to $20. However, customers may choose to tip more or less based on their personal finances and/or the quality of service they receive.

    Many tip-earners are paid minimum wage, which can be difficult to live on by itself. The extra money from gratuities might turn what would be a dead-end job into a long-term career.

    Tipping can arguably be considered an ethical responsibility when visiting a business where workers are paid minimally. But what about businesses where employees already earn a fair wage? Here, I believe there鈥檚 greater sympathy for not leaving a tip if you are struggling financially yourself.

    ADAPTING TO A CULTURE OF RISING TIP REQUESTS

    Are you still unsure of when or how much you should tip?

    For the time being, I鈥檒l continue to tip 15 to 20 per cent for quality service and hospitality. However, I also believe that tipping has gotten out of hand.

    Ultimately, leaving a tip is a choice, not an obligation. Tips should be given intentionally as a sign of gratitude for great service.

    If you鈥檙e bothered by the increasing tip requests, the best thing you can do is where employees earn a fair wage, and you won鈥檛 be pressured into tipping. The more support these smaller companies receive, the more we might see other businesses adopt the same model.

    Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his .

    CTVNews.ca Top Stories

    It's a dream for many Canadians, trying to save up enough money for a down payment on their very first home. That was also the dream for the Esmeralda family, a family of five with two dogs who currently live in a Scarborough apartment building.

    Donations are quickly pouring in for the family of a young woman who was found dead inside a Walmart in Halifax last weekend.

    A haunted house in the Ontario Town of Innisfil is causing a real scare for some people a week before Halloween.

    BREAKING

    BREAKING

    Four people are dead and another is in hospital following a fiery crash in downtown Toronto that happened overnight on Lake Shore Boulevard.

    Sri Lanka says 3 locals were arrested over a possible attack on Israel tourists

    Sri Lanka police have arrested three persons in connection with a possible attack on Israeli travellers in the Indian ocean island, a government minister said on Thursday, a day after the authorities stepped up the security across the country, with the United States warning of an attack targeting a popular tourist destination.

    Canada

    • Donations are quickly pouring in for the family of a young woman who was found dead inside a Walmart in Halifax last weekend.

    • An investigation into a climate of fear at a Montreal primary school has reignited a debate about secularism in Quebec's education system, with the provincial government pledging to consider new measures to keep religion out of classrooms.

    • Ontario needs more money to properly deliver the national $10-a-day child-care program now and beyond the life of the current agreement, the province's education minister has told the federal minister in a new letter.

    • Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.

    • Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.

    • BREAKING

      BREAKING

      Four people are dead and another is in hospital following a fiery crash in downtown Toronto that happened overnight on Lake Shore Boulevard.

    World

    Politics

    Health

    Sci-Tech

    • Vancouver Fire Rescue Services received its first shipment of new firefighting gear on Wednesday, advancing the department's plans to reduce cancer risk for its members.

    • A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    Entertainment

    Business

    Lifestyle

    • A new resident at a Manitoba animal rescue has waddled her way into people's hearts.

    • The Radium Hot Springs in British Columbia's Kootenay National Park has undergone a $29-million makeover.

    Sports

    Autos

    Local Spotlight

    He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.

    A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.

    A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.

    A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.

    Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.

    Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.

    The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.

    • Legend has it that on a dark evening in 1988, friends of Supt. Joe Atherton quietly buried his body on the site of the old provincial RCMP headquarters in Vancouver.

    • Since the record-breaking atmospheric river hit Metro Vancouver last Friday, 266 drivers have filed ICBC claims for water damage to their vehicles. In some places, flood water was so deep, cars floated away with the drivers still inside, and the engine running.

    • Brittany La Torre and her husband Marc moved into their West Vancouver home just six months ago, but after last weekend's storm brought a torrent of muddy water and debris into their basement, knocking out power, they're not sure whether they'll be living in it six months from now.

    • BREAKING

      BREAKING

      Four people are dead and another is in hospital following a fiery crash in downtown Toronto that happened overnight on Lake Shore Boulevard.

    • It's a dream for many Canadians, trying to save up enough money for a down payment on their very first home. That was also the dream for the Esmeralda family, a family of five with two dogs who currently live in a Scarborough apartment building.

    • Richard Robert Mantha, accused of kidnapping and sexually assaulting several women at a rural property east of Calgary, has fired his legal counsel again.

    • A proposed inner-city apartment complex development by Anthem Properties is raising concerns for some residents of Hillhurst and West Hillhurst.

    • Quebec鈥檚 Bureau of Independent Investigations (BEI) is investigating after police in Gatineau, Que. shot and killed a man who allegedly stabbed an officer during an investigation.

    • The City of Ottawa is hoping to learn this week just how many residents in the capital are homeless.

    • Emergency crews responded to a call for a collision involving a pedestrian on Princess Louise Drive at Hauteview Crescent just before 7:30 a.m. Thursday.

    • An investigation into a climate of fear at a Montreal primary school has reignited a debate about secularism in Quebec's education system, with the provincial government pledging to consider new measures to keep religion out of classrooms.

    • WEATHER

      WEATHER

      High temperatures have been trending in Montreal this season, but that could soon come to an end.

    • Montreal Mayor Val茅rie Plante says she will quit municipal politics after serving the final year of her second term, which comes to an end in November 2025.

    • An Edmonton tow truck operator has been charged after police say he refused to release a vehicle to its owner.

    • The City of Edmonton has a long road ahead to replace aging ice arenas as demand for ice time increases.

    • The leader of Alberta's Official Opposition rolled up his sleeves for his COVID-19 and flu shots today, opting to receive them in front of media because he's concerned about vaccine uptake.

    • Donations are quickly pouring in for the family of a young woman who was found dead inside a Walmart in Halifax last weekend.

    • A volunteer treasurer is facing charges after funds went missing from Nova Scotia Premier Tim Houston鈥檚 riding.

    • The official results of the 2024 Halifax municipal election were released Wednesday night.

    • A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.

    • A sentencing hearing is set to begin today for a Manitoba man who admitted to killing his common-law partner and their two young children.

    • A 59-year-old man has died following a crash involving three vehicles that started after a tire fell off a car on the Trans-Canada Highway Wednesday morning in the RM of Tache.

    • Former Saskatchewan Party MLA Gary Grewal is defending his conduct and disagreeing with a recent report from the Conflict of Interest Commissioner (COIC) 鈥 which found he broke rules that prohibit MLAs from being involved with government contracts.

    • Southey RCMP say drivers should expect delays on Highway 6 Wednesday night after a serious crash.

    • Regina police says officers will provide an update Thursday in its search for the suspect of a homicide that took place in the city during the summer of 2023.

    • Detective Robert Hofstetter examined Erb鈥檚 home after her death and came to several conclusions based on the blood stains he found there.

    • A psychologist who recently assessed Geovanny Villalba-Aleman believes he may have experienced a psychotic break before stabbing three people in a gender studies class at a University of Waterloo.

    • Corrections Service Canada has confirmed a women鈥檚 prison in Kitchener is in lockdown.

    • The race to form government is heating up ahead of the provincial election on Monday. Both the Saskatchewan NDP and the Saskatchewan Party feel they have the momentum as each leader has been focusing on different areas of the province as the campaign trail nears its end.

    • Canada's discount airline is suspending operations to and from Saskatoon.

    • The Saskatoon civic election is drawing closer, with mayoral candidates outlining their visions to keep the city competitive and attract businesses.

    • The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • It only took minutes for North Bay pharmacist Brian Chute to be out $1,500 after fraudsters deceptively swapped his bank card with another.

    • A 27-year-old man is miraculously alive after his pickup went over Hawk Cliff near Port Stanley. Fire fighters estimate that from the top to bottom of the embankment is around 270 feet.

    • Under tough cross-examination at the London courthouse on Wednesday, Rachel Johnson, 21, was asked a number of times why there was a delay in calling 911

    • OPP have confirmed that a transport truck driver crashed into a historic home just southeast of London this morning.

    • Causing a disturbance at an Orillia shop drew the attention of local police.

    • Stevenson Memorial Hospital is being cautious about visitors during flu season.

    • A 34-year-old motorcyclist has died following a collision in Barrie鈥檚 south end on Tuesday.

    • Officials at the Hospice of Windsor-Essex are calling this years fundraising total, "astonishing." The face to Face Campaign wrapped up on Sept. 30, brining in a total of $111,203.00.

    • In the Town of Tecumseh, residents and athletes alike are facing a pickleball problem that may prove costly.

    • As hospitals elsewhere in Ontario reintroduce mask mandates due to rising respiratory illnesses, Windsor hospitals are taking a more measured approach.

    • Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.

    • When 16-year-old Kaydence Bourque was struck and killed in a crosswalk on Cedar Hill Cross Road in Saanich in 2021, the community was shaken to the core.

    • A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.

    • Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.

    • A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.

    • Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.

    • Graduate students looking to become mental-health professionals will have more opportunities to study in the University of Lethbridge鈥檚 Master of Education Counselling Psychology program.

    • A dazzling light display is making its return to Lethbridge this holiday season.

    • As part of anniversary celebrations, the City of Lethbridge is inviting the community to see VisitLethbridge.com Arena like they never have before.

    • The lack of 24-hour public washrooms has been a long-standing issue in the Sault, especially considering the rise in homelessness.

    • The union representing the fire rangers with the Ministry of Natural Resources says money won鈥檛 fix the systemic problems in the workplace.

    • Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at 愛污传媒. We may earn a commission when you use our links to shop.聽Read about us.

    Stay Connected
    Follow 愛污传媒