From oil changes to food that goes out, the “tip nudge” has quickly become a “well-established social norm” in Canada, according to food economist Mike von Massow. Card payment machines have made it easier for businesses to request a tip option, even in industries where tipping was previously not part of the cost or conversation. And data from Canadian trade associations shows the average tipping rate for restaurant food has risen since the start of the pandemic. Von Massow, who is also a professor at the University of Guelph, says the expectation for Canadians to increase the amount of their tips is getting out of control and has become a “hot” topic across the country. “I went to my local craft brewery the other day, just to the bottle shop, to pick up some cans of my favorites,” von Massow said. “When I was paying there, someone literally grabbed beer from the fridge and handed it to me and I was encouraged to tip on that occasion.” He calls it a “double whammy” for consumers, with more businesses asking for advice while simultaneously raising their prices. “You know, I’m starting to wonder if I give a particularly good lecture, put a jar in the front of the lecture hall at the end and as they file away? Maybe they could throw some bills in there for me, too. I mean, where does it stop?”
International alternative
Kate Malcolm moved to Port Perry, Ont., in 2017 from the United Kingdom, where tipping is not common. Five years later he says he still struggles to cope with Canada’s tipping culture. “There’s no way in England you’re going to pay $10, $20, $30 to a hairdresser,” he said. “Is it so expensive to do your hair the way it is, and then you have to put it in? It’s such a foreign concept.” Malcolm, who runs a podcast aimed at newcomers, included her reaction to Canada’s unwritten rules on tipping in a tik tok videos describing her “culture shock”. A screenshot of Kate Malcolm in a TikTok video featuring her reaction to Canada’s unwritten rules about tipping. (Kate Malcolm/TikTok) She says that when her parents first visited, expectations about tipping in Canada weren’t clear, which led to an awkward exchange at a restaurant. “They just threw coins on the table, like maybe $2 and change, and said, ‘that’s all we do, right?’ Well, that’s probably more offensive than not doing it [tipping].” Malcolm lived and worked as a server in Australia as well, where tipping is also not the norm. She said the pay was much higher than in Canada, and without the expectation to tip, she felt less pressure to be “super friendly” all the time.
Some customers were angered by the tip prompt
Dough Bakeshop in Toronto added a tipping option to its card machines after employee and customer input. Co-owner Oonagh Butterfield says they’ve always had a cash tip jar on the counter, but saw a significant increase in tipping when customers were given a choice of debit or credit card to do so. “I’ve been on record since we implemented it, being as clear as I can be, saying it’s not expected,” he said. Oonagh Butterfield, co-owner of Dough Bakeshop in Toronto, says some customers have expressed outrage at being asked for a tip even with signs posted in the shop saying no tips are expected. (Photo by Dylan Garez) Despite posting signage like “to skip the tip option, press green,” Butterfield says some customers still question the electronic tip option. “Sometimes there’s a little, I will say, outrage that they’re even asked the question, ‘Would you like to tip?’ Especially if they’re just buying bread, so again I’m trying to communicate to people that’s not a necessity.” Despite currently having the option of tipping for customers, Butterfield says she supports moving away from Canada’s current tipping culture, “so everyone can have a guaranteed living wage.”
No tip equals prices raised to give staff a living wage
In July 2020, Toronto’s Richmond Station restaurant ditched tipping, instead choosing to raise its prices to pay staff more. Co-owner Carl Heinrich calls Canada’s tipping culture “a very unfair way of paying staff.” The lockdown forced his business to start offering takeaway – historically a service that didn’t generate many tips, he says. “Any time you’re processing someone’s salary or pay, their livelihood, there’s a lot of communication involved,” Heinrich said. “Because there was no plan for this new system, there was a lot of work. And honestly, two years later, it’s still working.” Carl Heinrich is the co-owner of the Richmond Station restaurant in Toronto. He says they eliminated tipping in July 2020. Instead, they chose to raise their prices to pay the staff more. (Photo by Sarah Brownlee) There is no single living wage for staff at Richmond station. Pay varies based on a person’s performance, experience and position, he added. “Dishwashers make a living wage. Servers make a living wage. But certainly our best servers are paid more than our less experienced servers. Under the previous system that was not possible.” In an ideal world, there would be no tipping. It is a human rights disaster. But it is so deeply rooted. I think we’re stuck with it. – Marc Mentzer, business professor, University of Saskatchewan Except in “very high-end” restaurants, where customers may not be as picky about how much they spend, says University of Saskatchewan business professor Marc Mentzer, many businesses that replace tipping with service charges fail. Clients like the illusion that they have power over the server, and the server likes the illusion that they control the amount of their own income, he adds. “In an ideal world, there would be no tipping. It’s a disaster for human rights. But it’s so deeply ingrained. I think we’re stuck with it.” Marc Mentzer is a professor at the University of Saskatchewan’s Edwards School of Business. He says the card reader for online payments has changed expectations about how much to tip, when and what. (Submitted by Marc Mentzer) Heavy pre-programmed tip rate options on chip-card machines can “scare people into tipping higher than they might ever consider before,” Mentzer added. “Everyone complains about tipping, but given the choice between a tipping restaurant and a service charge restaurant, I’m not sure how customers would make that choice. I think customers might actually prefer the tipping approach if given the selection.”
