For Cory Moore, tipping is always part of the cost of going out for a meal, especially when the service is good. Moore and three friends regularly meet for breakfast at Buster’s Bar & Grill in Kanata, where he says a full plate and solid service keeps them coming back. “You have to make sure you’re tipping. You don’t want to be coming across as unappreciative,” says Moore. Tensions about rising costs are reflected in new national data from hospitality technology company Actual, which found 67 per cent of tipped hospitality workers say their tips have declined over the past two years, up sharply from 39 per cent in 2024. The decline is even more pronounced in Ontario, where 72 per cent of tipped workers reported making less in tips. Actual CEO and co-founder Afshin Mousavian describes the trend as a “tipping recession.” “Eighty per cent of diners are saying that they’re going out less,” Mousavian said. “So, less sales means less tipping income. Four out of ten people working in the hospitality industry uses tips to pay for essentials. That’s their rent, that’s their groceries.” At Buster’s Bar & Grill, owner Steve Schwan says spending is down across the board, which inevitably affects tips. “People, when they’re happy with their service, they’re still tipping accordingly,” he said. “Servers are going to get 20 per cent tips or 25 per cent tips, and sometimes yes, they will get five per cent tips, it’s up to the person. But, if the customer is happy, then they should tip accordingly.” The report suggests most hospitality workers still see tipping as an important part of the industry. Seventy-six per cent say tipping incentivizes better service, while 62 per cent believe tips should be tied to the quality of service rather than the size of the bill. But consumers are also increasingly frustrated by what they see as “tip creep,” where there are now gratuities in places where tipping was not traditionally expected. James Allen says he has noticed more tip requests at takeout counters, stores and other businesses. “I find that you’re seeing more and more expectations around tips that didn’t exist pre-COVID,” he said. “We want to support the local establishments, especially given the hard times that everyone is struggling with right now, but we also have budgetary issues as well that we want to live within our current ability to enjoy life with the funds that we have.” Actual’s survey found 91 per cent of consumers who tip at restaurants and hotels are comfortable doing so, but many are increasingly uncomfortable with tipping in other settings. “What’s most important for consumers to understand is that these same servers and bartenders and kitchen staff members and owners are living in the same economy as they live in,” said Mousavian. “The businesses cannot afford to pay anymore because there isn’t any support from the governmental lawmakers on a provincial or federal side… If we’re to reduce taxes in certain areas, we could give a relief to an industry that is part of the fabric of our economy.” The report also says 61 per cent of tipped workers have considered tip income when deciding whether to stay in the hospitality industry. For Moore, however, the basic calculation remains simple – if the service is good, the tip should reflect it. “If you’re going to go out, I think you have to take into account the fact that you’re going to be tipping,” he said. “The affordability issues and the crisis that we’re all in, it affects everyone, including the servers and the cooks.”
