Hi there. Every once in a while I make an economics related post. This one is about tipping in Canada and people pushing back on it.
The motivation behind this post was from this reddit post on r/Canada.
I put the travel tag as this could help any tourists coming to Canada.
Let's start with the definition of tipping. According to Wikipedia, tipping or a gratuity is a sum of money given by a customer in the service sector.
In some countries, a tip is customary for servers in bars and restaurants, taxi drivers, tattoo artists, hair stylists, etc. Some countries do not require tipping. Tipping in some places is actually discouraged.
In Canada, we do have a tipping culture. With an increase of cost of living, there are some Canadians pushing back on it.
This guide is from 2025 and may be outdated. It provides a tipping guide in Canada for various services. It is confusing and I don't follow it. For restaurant service 15% to 20% tips before the tax bill is common. Cafe and Bars it says 1CAD to 2CAD tip per drink. I don't do this as I don't drink coffee and bar drinks are pricey these days.
Tipping On Takeout Items? That Is Messed Up
There have been more instances of tipping required for doing ordering food and doing takeout/pick-up. In the past (five years ago), tipping for takeout food is unheard of. For whatever reasons, some places are asking for tips on takeout items, food pickup or even buying beer.
Here is one Redditor anecdote/claim by TheShawnP:
At Scotia Arena (Toronto) they have self check out stores to buy drinks/food. I went to a Raptors game last week and we walked in I grab 2 drinks, and go cash myself out and of course there's a tip prompt. Not only are the drinks heinously over priced ($33 for a Beer and Hard Iced Tea ) but the wtf am I tipping for? Tips are for service. I served myself.
Another Redditor talks about his/her trip to Blue Mountain.
I went to Blue Mountain and I remember it asked for a a tip in the cafeteria. As in a place where I picked up a tray and grabbed the food MYSELF.
I straight up laughed.
Here is one more Reddit post. This one from mega_turtle90 talks about fast food joints.
You got fast food joints like pizza stores, five guys, burger priest and subway asking for tips like GTFOH lol
Higher Prices = Higher Tip Amounts
If dining out goes from 100 CAD to 160 CAD and the tip percentage is still at 15%, you are paying more in tips. The tip amount goes from 15 CAD (15% at 100 CAD) to 24 CAD (15% at 160 CAD).
Even though the tip percentage stays the same, higher dining out prices leads to higher tip amounts.
As a math and stats trained person, finding solutions is something ingrained in me. If businesses are raising their prices for whatever reasons, then you as a consumer can respond.
There are some vocal people wanting to get the government involved and ban tipping.
Some people go as far as don't tip as a form of protest against tipping culture. Some people may not even give certain places any businesses for tipping requirements and go to other places with lower tipping requirements.
As Dining out is getting more expensive in Canada, some avoid dining out and the tipping altogether. It is cheaper to cook at home. More work is needed but the cost savings is big.
When you dine in at a restaurant and pay by credit, the server comes in with the credit card machine. When it comes to the tip amount, there are usually 3 options:
Sometimes there is a custom amount option but I think these days the dining out places want you to tip at least 15%. It is kind of crazy.
There are some Chinese restaurant and food places in the Toronto area that I know of don't require tip. (Tips are optional.) Instead they do something like a 12% service charge. This service charge may be included in the bill. This is from my own experiences. Service charges may be in other ethnic restaurants (Japanese, Korean for example) but I cannot say for sure.
In an environment of increased expectations for tipping, you either accept or reject it. If enough people reject crazy tipping demands, then some businesses that want more tips would see less customers that can further result in closures.
Thank you for reading.
