From fast-food counters to self-checkout machines, Canadians are seeing more tipping reminders than ever before—experts say this constant “reminder” is reshaping how people tip. Polls show that 90% of Canadians believe current tipping amounts are too high.
Although data on tipping habits is still limited at the national level, several recent surveys show that Canadians are being asked to tip more often, and how they feel about it, is changing significantly.
According to a 2025 survey by H&R Block Canada, 82% of Canadians say they are now expected to tip in more situations, and 90% believe that tips are too high. The survey also found that nearly 60% of Canadians said they tipped more than a year ago.
Wayne Smith, a professor of hotel and tourism management at Metropolitan University of Toronto, said the rise in tipping rates is part of a larger trend often referred to as “tip sprawl.” He told CTV in a Zoom interview, “We’re tipping in more places than traditionally have. This change has fuelled growing discontent among diners and what’s known as ‘tip fatigue.’”
According to another survey of nearly 1,000 Canadians conducted by Research Co. in 2025, about 64% of people aged 55 and older said they “always” tip; 56% of those aged 35 to 54; and 41% of those aged 18 to 34.
While the surge in tipping requests has left many Canadians confused and frustrated, two Canadian experts say the trend is not accidental, but rather shaped by a combination of inflation, technology, and societal expectations. There is a kind of social anxiety.
Smith stated that tipping has become an embedded experience, from food delivery services that rely on tipping to digital payment systems that prompt a fixed percentage. He said, “In the past, the bill was brought to the table, you signed it and left. Now, when you pay with a machine, the person stands next to you and watches, which creates a kind of social anxiety.”
During the pandemic, food delivery apps like SkipTheDishes and Uber Eats became even more indispensable, with tipping being directly embedded in the checkout process. With the proliferation of digital payment terminals, Smith says tipping has become smoother, but also more psychologically stressful. Smith explains that this is known as “social expectation bias”—people feel pressured to be generous when employees watch them choose tipping options.
He said, “You don’t see the money being passed from the table, which is the easiest way to increase tips without thinking.” Marc Mentzer, a professor at the Edwards School of Business at the University of Saskatchewan, also agrees that digital cues have fundamentally changed consumer behaviour. “Everywhere you go, they hand you a chip card reader,” Mentzer told CTV. “In my experience, the minimum tipping option is almost always higher than 15%, and it varies a lot from restaurant to restaurant.”
Data released by Statistics Canada in January and provided to CTV shows that in 2024, approximately 1.2 million employees—6.9% of the workforce—received tips or commissions, with the accommodation and food services industry having the highest proportion at 43.1%.
A spokesperson for Restaurants Canada stated in an email to CTV that “the suggested tip amount should be calculated based on the pre-tax subtotal” to ensure that customers are tipping based on the cost of the service rather than taxes.
Some Canadian businesses have eliminated tipping and switched to paying a living wage to alleviate customer dissatisfaction with the tipping culture. However, both Smith and Mentzer argue that the reality is far more complex. A key issue in the tipping debate is the gap between the statutory minimum wage and the so-called “living wage.” Advocates argue that workers need a living wage to cover basic expenses, and that the two concepts are not interchangeable.
As of 2025, the federal minimum wage for employees under federal regulation will be $17.75 per hour, applicable to industries such as banking, airlines, and federally regulated transportation.
Each province sets its own minimum wage: Ontario’s general minimum wage will increase to $17.60 per hour on October 1, 2025; British Columbia ‘s general minimum wage will be $17.85 per hour (effective June 1, 2025); Quebec’s will be $16.10 per hour; and other provinces will generally range from $15 to $18 per hour, depending on the jurisdiction.
In comparison, the calculated living wage is much higher. For example, the Ontario Living Wage Network estimates that the average hourly wage in the GTA is around $27.20, while in most smaller communities it is between $21 and $27 per hour, depending on local rents and costs. Why is this disparity related to tips? When base wages are low, employers and industry models have historically relied on customer tips to supplement employee income.
Advocates like Smith argue that shifting to a “wage-inclusive” model—where employers pay employees a living wage directly, with higher menu prices—can eliminate the arbitrary and emotionally driven element of tipping and lead to more stable income.
Mentzer said, “There is a widespread belief that customers will make up the difference between the wages paid by employers and the compensation employees deserve.” But Mentzer said that raising wages would not necessarily eliminate tipping. He pointed to Ontario as a key example.
In 2022, the province eliminated its lower minimum wage for bartenders and raised their basic hourly rate by several dollars. Mentzer stated that if any province is going to see a decline in tips, it will be Ontario. “The result had no impact,” Mentzer said. “Waitresses were getting more money through the minimum wage,” meaning the base wage increased, but customers were still tipping at roughly the same rate. Even more surprisingly, Mentzer stated that the provinces with the lowest minimum wage often also have the lowest tipping rates.
The higher tipping rates are also compounded by rising menu prices. However, Mentzer stated that the price increases have not slowed down tipping behaviour. He said, “The tipping rate is gradually increasing, but not as fast as restaurant prices.”
According to Statistics Canada, the Consumer Price Index for food at table service restaurants rose by 3.3% in 2024, driven primarily by labour, raw material, and operating costs. Even as overall inflation began to slow, restaurant prices continued to rise.
In October 2025, Canada’s overall inflation rate was 2.2%. During the same period, food price inflation was 3.4%, meaning food prices have outpaced overall inflation for nine consecutive months.
Menu price inflation was particularly steep during the pandemic. According to Restaurants Canada, the peak menu inflation rate in 2024 was approximately 5% to 5.6%, driving up the cost of dining in for Canadians. At the same time, the weight of food in the CPI basket is also rising. In 2024, food will account for 16.72% of the inflation basket, up from 16.13% a year earlier. Of this, food purchased at restaurants will account for 5.90%.
As menu prices rise, even if tip rates remain unchanged, the absolute number of tips expected from diners continues to increase, exacerbating their already felt financial burden.
Mentzer said that ordinary customers might be surprised by how the tips are distributed. For example, in Ontario, the Employment Standards Act explicitly prohibits employers from withholding tips or requiring employees to hand over tips—unless there is a legally recognized tip pool. The key point is that under this system, employers, directors, or shareholders are generally not allowed to participate in the tip pool unless they are substantially performing the same work as the employees who receive tips.
The law does not require tip pool arrangements to be established in writing, nor does it require employees to vote. In British Columbia, under the BC Employment Standards Act, employers are not allowed to withhold employees’ tips unless they are redistributed through a tip pool. Furthermore, employers can only participate in the tip pool if they perform the same frontline work as their employees. This limits the so-called “in-store commission,” where management takes a cut for kitchen or non-service positions.
In Quebec, tip sharing, or a “tip pool,” is legal, but only on a voluntary basis and with the consent of most employees who typically receive tips. Employers cannot enforce tip sharing—these policies must be freely accepted, not imposed.
Mentzer said, “The average customer is unaware of how tips are redistributed behind the scenes and might be surprised. You think you’re giving money to the waiter, but you’re giving money to many other people.”
