Tipping Point: Canadians tired of ‘tip-flation’; most would scrap gratuity-based system for higher service wages

Canadians have reached a tipping point when it comes to gratuities.

New data from the non-profit Angus Reid Institute finds so-called “tip-flation” a key pain point. Most Canadians report being asked to tip more (62 per cent) and more often (64 per cent), and in several cases, they are obliging.

In 2016, 43 per cent of Canadians said they left a tip of less than 15 per cent when they last ate at a restaurant. Now approximately half as many (23 per cent) say the same. Meanwhile, one-in-five (21 per cent) say they left a tip of 20 per cent or more when they last dined out, more than double the rate (eight per cent) of those who said so in 2016.

Canadians also report “tip creep” – where locations that previously may not have prompted for a tip have added the request to digital payment machines – as a source of fatigue. Four-in-five (83 per cent) say too many places are asking for tips these days, including at least three-quarters across all regions and demographics. Meanwhile, few (13 per cent) believe customer service has improved as tips have increased.

The result: a significant increase in the number of Canadians who say they prefer (59 per cent) a “service included” model, which would see an end of tipping and higher base wages for employees. ARI polling from 2016 found respondents were more likely to prefer tipping (46 per cent to 40 per cent).

More Key Findings:

- Those who previously worked a job that received tips (58 per cent) are as likely as those who have not (59 per cent) to support a move to a “service included” model.

The full poll can be viewed online at https://angusreid.org/canada-tipping-service-hospitality-included-tipflation-tip-creep/