Canadian hospitality workers face ‘tipping recession’ amid rising costs

A new report by tip management company Actual, utilizing an Angus Reid survey, describes a ‘tipping recession’ affecting Canadian hospitality workers. The data indicates that economic pressures are causing a decline in tipping frequency and generosity across the country.

In Ontario, 72 per cent of tipped workers reported a decline in tips, while 60 per cent of workers in Atlantic Canada reported similar decreases. In British Columbia, only 40 per cent of hospitality workers receive tips, which is below the national average of 49 per cent. Despite B.C. having one of the highest minimum wages in Canada, workers there are noted as being the most reliant on tips to cover essential costs like rent due to high housing expenses.

Nationally, 43 per cent of hospitality workers rely on tips for essential expenses such as groceries and rent. This reliance is highest in Atlantic Canada and British Columbia at 51 per cent. The report also highlights a gap in consumer awareness, with 41 per cent of workers stating that customers understand little or nothing about the financial impact of not tipping.