If you wonder how much of your tips go to employees at an establishment, some businesses in the hospitality industry do, too. But many aren’t clear about their own rules.
Tipping is a divisive subject in Canada, especially as people grapple with the cost of living crisis.
Canadians have been vocal about where they don’t leave a tip — ordering takeout from restaurants, liquor stores, and even mechanics.
They’re also divided about giving tips to some services, whether taxis, ride-share services like Uber and Lyft, or food delivery services like Uber Eats.
Toronto-based etiquette expert Lisa Orr told Daily Hive in 2022 that you’re expected to tip at establishments where you experience extra service. This includes restaurants and personal-care locations like salons and spas; businesses that don’t require tips are professional services.
When you tip, you hope that 100% of your tip will reach the business’s employees. However, according to the 2024 Hospitality Tipping Trends Survey by Atlas and Angus Reid, many Canadian establishments themselves aren’t sure if that happens.
Atlas, a hospitality automation and tip management software company, surveyed 207 restaurant owners/operators or hospitality professionals who were members of the Angus Reid Forum from September 27 to October 2, 2024.
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One part of the survey asked businesses about the importance of tipping transparency.
“Awareness surrounding the final amount of tips that reach their intended recipients is a crucial aspect of transparency in the hospitality industry,” reads the report released on Tuesday.
According to the survey results, a “concerning” 47% of respondents don’t fully know how their tips are distributed, with those least aware in Alberta (38%).
Furthermore, 21% of those surveyed have no idea how much of the tips reach the service provider.
Thankfully, when it comes to clarity in tipping policies, a staggering 91% of those surveyed agree that they should be clear and transparent for both employees and customers, with 70% strongly agreeing.
While the survey revealed that a majority of hospitality industry participants (71%) agree that tipping is important, an increasing number also prioritize higher overall compensation.
“[Thirty-four percent] prefer a no-tip environment with higher base pay, especially prominent in Quebec (58%),” reads the report. “Only 25% indicated a preference for a work environment that includes tipping, highlighting a significant shift toward valuing fair wages over gratuities in the industry.”
This is in line with how a majority of Canadian customers reportedly feel about tips. An Angus Reid survey from 2023 found that most Canadians want to ditch tipping and pay for higher service wages.