Nearly 70 per cent of tip workers nationwide report decrease in tips: report

As the cost-of-living rises, Canadians are tipping less.

As Canadians feel the pinch on groceries, gas and everyday essentials, it’s perhaps no surprise people are dining out less.

The latest Tipping Point Report by Actual, a tip managements and hospitality automation company, shows Canadians are tipping less, too.

“This year we found that 67 per cent of tip workers say that the tips that they’ve been receiving have decreased across Canada,” says Afshin Mousavin, Actual’s CEO. “This is something that’s not a surprise to us, given that on the consumer side, you often hear about the tipping fatigue.”

The report found Atlantic Canadian workers feel “misunderstood” by customers when it comes to tipping.

“Forty-three per cent of these individuals rely on tips to be able to pay for essentials. For instance, rent and groceries and others. Fifteen per cent believe that consumers have a very limited understanding about the impact of not tipping.”

Mousavin says it shows the gap between what consumers believe tips do and what hospitality workers see tips as.

“The reality is, there are certain economic factors that make tipping a necessity in these types of industries,” he says.

“Forty-one per cent of restaurants are operating at a loss with zero profits. What that really means is that the businesses don’t have the ability to afford to pay more for the service and for the wages that are required to operate that business. That’s one of the biggest misconceptions.”

Natasha Chestnut with the Restaurant Association of Nova Scotia says it’s understandable from both sides.

“Everyone’s being squeezed. Consumers are being squeezed because their expenses are up. Businesses are being squeezed because their expenses are up. And then of course, staff, their expenses are up,” she says.

“Less tips is less money in pockets. but we also know consumers also have less money in their pockets.”

Maritimers like Luke Vanwiechen have their own opinions on the matter.

“I think that tipping overall doesn’t really make sense. I think a European style where waitresses and waiters just get paid good living wage makes more sense, but I think since they don’t in Canada, we should all tip servers.”