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Are Canadians Done with Tipping?

Tipping in Canada, once seen as a token of appreciation for good service, is now being regarded by some Canadians as a social obligation due to rising living costs burdening patrons’ bills.

Andrew McIntoch from Halifax, N.S. shared his approach, stating that while he understands the financial challenges everyone faces, he maintains a 15 percent tip for standard service and 20 percent for what he deems “exceptional” service when dining out.

Elaine Hampson, hailing from Duncan, B.C. on Vancouver Island, expressed a preference for businesses to eliminate tipping altogether. She advocates for Canadian businesses to pay their employees fair wages and evenly distribute operational costs among consumers.

However, the question remains: Are Canadian restaurants ready to adopt a no-tipping policy?

Jennifer Low, owner of Sarang Kitchen, a Toronto restaurant, believes it’s feasible. She emphasizes that all her employees receive a minimum wage of $23.15 per hour, aligning with the living wage standard set by the Ontario Living Wage Network. Inspired by her experiences in Singapore and New Zealand, where tipping is not customary, Low suggests that discouraging tipping promotes equity and inclusivity among patrons and staff.

Despite the challenges posed by rising food costs and supply chain disruptions, Low has adjusted her business model to ensure affordability for customers while maintaining fair wages for her staff.

Yet, the broader restaurant industry faces significant hurdles, particularly since the pandemic. Rising costs, labor shortages, and debt from extended closures have severely impacted restaurant profits. Tracey MacGregor, vice president of the Ontario branch of Restaurants Canada, underscores the immense difficulty and volatility of operating a restaurant in Canada today.

According to Restaurants Canada, 84 percent of Canadian restaurants report lower profits than in 2019, with nearly half operating at a loss or just breaking even. While a comprehensive shift to a no-tipping policy may not be an immediate solution, MacGregor notes that restaurant owners are increasingly focusing on staff retention and fair compensation. Initiatives like health benefits, dental coverage, and higher wages are becoming more prevalent.

Folke, a vegan restaurant in Vancouver, has embraced a no-tipping policy, providing staff with salary wages, health and dental benefits, and lifestyle benefits. Owner Pricilla Deo acknowledges that transitioning to this model may be challenging for other restaurants due to menu, customer, and staff adjustments.

While no-tipping restaurants remain a minority in Canada, for those following the traditional system, the question of how much to tip remains. MacGregor emphasizes that, despite the use of tipping percentage prompts in many establishments, the decision to tip and the amount are ultimately at the discretion of the customer. Recognizing the efforts of employees who work diligently to create exceptional dining experiences is essential.

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