Mike von Massow, a food economist at the University of Guelph, said the social norm for tipping used to be 15 percent. “I’ve seen it go up in urban areas to 20 or more,” he said. Ontario’s tip increase is nearly 10 per cent higher than the national rate, which also rose 44 per cent compared to pre-pandemic levels, according to an Angus Reid survey sent to 1,500 Canadians in April. “I think what’s happening now is … a variety of nudges and cues at the payment machine are pushing and guilting people into tipping more,” von Massow said, explaining that rising rates at credit card terminals are decisions made by individual businesses. . The spin on payment prompts, combined with a renewed “show of empathy” for the industry and rising food and beverage costs, is leading to a phenomenon called “tip inflation,” von Massow said. “People realize or have realized now how hard restaurant employees work. They want to recognize that, especially now that you see there’s a labor shortage and staff are working a lot harder,” James Rilett, senior vice-president of Restaurants Canada, told CTV News Toronto. “We also pay the staff more and everything costs more,” said Anthony Rose, owner of the Annex’s Fet Zun, Fat Pasha and Schmaltz Appetizing. “I’d like to think people understand the situation.” In general, he said he’s also seen an increase in tipping for delivery and pickup. “In the past, people didn’t like paying for pickup and delivery,” he said. But for his restaurants, Rose said it costs just as much money. During the pandemic, Dufferin Grove’s Burdock Brewery stopped asking patrons for tips and switched to a hospitality model, which raised the cost of their food and drinks in order to pay their servers a higher and more consistent wage. The hospitality model allowed their employees to budget instead of relying on the variability of tips during quarantine periods. But this month, the business returned to a tipping model, which an employee said could allow servers to make more money. David Neinstein, owner of Barque BBQ in Roncesvalles, has also changed his approach to tipping during the pandemic. In May, it decided to eliminate tipping and raise its prices. “We were worried there was going to be a pushback,” he said. But to his surprise, he said there was none. The establishment no longer prompts patrons for tips, but said there is a notice at each table offering the option for anyone who wants one. While adding a tip to the tab isn’t necessarily the norm, Neinstein said some customers ask for it.
