Canadian study suggests customers have reached their tipping point with tipping culture

A new survey found that nearly two-thirds of Canadians have reached their tipping point with tipping culture.

Tipping used to be a no-brainer for many - you leave a little extra money for good service.

Now, there’s an expectation to leave a tip in places where it wasn’t expected before and a new survey suggests Canadians are fed up with it.

The study, commissioned by H&R Block, finds that 67 per cent of Canadians say they’ve ready to get rid of tipping for good.

“Just because you’re doing your job, doesn’t mean you need to be tipped for doing your job,” says Ottawa resident James Warner on his lunch break at Train Yards.

“I’m in a customer service business for the place that I work at. We have customers that come in. I produce a material for them… I don’t ask them for a tip.”

Many businesses implemented “suggested tipping options” during the COVID-19 pandemic, but the expectation to leave a tip has some customers saying it’s gone too far.

“I used to love tipping extra for really good service,” says Ottawa resident Kiana Malt.

“I feel like that’s kind of gone away now, even for bare minimum service they expect 18 to 20 per cent.”

The survey also found:

• 89 per cent of Canadians say they resent businesses with tip prompts for payments they don’t think warrant a tip.
• 41 per cent have avoided going to places that they know have tip prompts at cash out, such as coffee shops, convenience stores, fast food or self-serve counters.
• 57 per cent of Canadians said they felt awkward skipping the tip prompt, but left a tip anyway
• 89 per cent think the tipping percentage amounts have become too high
• 79 per cent say they enter their own choice of tip versus using the prompted percentage amounts where possible

At Chuck’s Deli & Convenience at Train Yards, tips aren’t expected but appreciated.

“I go to Chuck’s quite a bit. They don’t ask for a tip and the service is fantastic,” says Warner.

“They have a tip jar, which is optional at the counter, which I do quite often with them because the ladies are fabulous.”

Chuck’s owner Charlie Nesrallah says, “Some customers like to (tip)…some people they don’t. They walk out without tipping… One guy, you know a construction worker, he grabbed $50 and he put it (in the tip jar) for the ladies. So, you never know.”

Getting rid of tipping could affect the day-to-day operations in the service industry, and at restaurants, it could mean higher prices for customers to offset the loss of income to employees.

“I would assume it would be included in the price. I mean minimum wage is quite high already, so if tipping were to be taken away, I don’t know what that would look like. I don’t know what the workforce would look like for that,” said Lindzy Thompson, one of the managing staff at The King Eddy in the ByWard Market.

Thompson says ultimately, it’s up to the customer to decide how much or how little they want to tip.

“It’s up to the customer’s discretion and like I said, all that is within our control in that we can provide excellent service. That is worth tipping for,” she said.

“I would say the majority of our clients are more than happy to tip.”

Many consumers, like Kristina Potter, say the suggested tip options make them feel guilty or pressured to leave a tip.

“I don’t mind tipping for good service. Let’s see if it is very good. I think if I’m buying a chocolate bar and you have to choose 15 or 20 per cent, it’s a bit crazy and you know the amount matters. Don’t start the tip at 20 per cent.”

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