Research out of Dalhousie University is looking at the impacts of the increasing tipping culture over the past few years.
“Consumers feel that they are part of a scheme that is asking them to provide some sort of wage subsidy,” said Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University.
“They know that, some employees are underpaid, so they’re actually being asked to bear the burden of paying employees decently.”
Charlebois says people tended to be more generous during the pandemic, in part to show appreciation for workers risking their health and safety amidst the public health emergency.
“That era has come to an end,” said Charlebois. “People are a little more fatigued and they’ve went back to their old ways of tipping, essentially.”
He says with more businesses incorporating a tip function in their service, customers have become less generous overall.
“If you actually are constantly being asked to tip everything in your life, when it really matters in a restaurant, for example, where a service is being provided, you may end up being less generous,” said Charlebois.
While he says his research shows that most people still want some form of tipping in certain businesses, 27 percent of Canadians want to eliminate gratuities altogether.
Update on no-tipping restaurant
Some Vancouver restaurants and cafes have adopted a no-tipping philosophy, opting instead to pay their workers a living wage.
Cow Dog recently opened its small café on Oak Street and advertises its no-tipping concept on its front door. Its social media also advertises that the company pays its staff a living wage of $26 per hour to start. The owners declined an interview with CTV News.
Folke restaurant in Kitsilano has been operating as a no-tipping restaurant for nearly two and a half years. Its staff have salary and benefits with a starting wage of approximately $29/hour.
“Customer-wise, I don’t think anyone sees a downside to it,” said Pricilla Deo, Folke co-owner. “Restaurant margins are so thin, but we’re making it work. It’s working out well for us.”
She says menu prices reflect the added costs of paying their employees higher wages. While she does have some loyal employees, she admits that some staff have left for higher potential earnings at traditional tipping restaurants.
“It’s hard to find the staff members who really align with our values, and they want the same things, and they’re here for the stability and the added benefits that come with a salaried role,” said Deo.
Deo says she has no intention of abandoning her restaurant’s no-tipping concept.
