Canada’s “Tip-flation” Surge Fuels Consumer Fatigue Post-Pandemic

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In recent years, there has been a significant yet unobtrusive shift in the Canadian business landscape. The number of companies seeking gratuities has seen a steep rise. This increment grew notably more ostentatious following the reopening of communal spaces such as restaurants post the COVID-19-induced lockdowns. It appears that establishments that rarely, if ever, solicited for tip-offs prior to this period have now become willing participants in this trend.

This noticeable evolution has heightened what is now commonly referred to as “tipping fatigue” amongst consumers – a weariness triggered by a constant expectation to extend monetary gratitude at a burgeoning number of businesses. This escalation in tip requests threatens to unsettle the intricate equilibrium customers maintain between acknowledging excellent service and conserving their financial resources. This upward shift, its catalysts, implications and whether it is here to stay forms the focus of the present discussion.


It is important to recognize that Canada has always fostered a solid tipping culture. It’s deemed common practice for consumers to offer tips in places like restaurants, bars, or for valet and cleaning services, taxi and transportation services to name a few. Preceding the COVID-19 pandemic, the standard tipping rate across the country was typically 15 percent of the service cost. Whereas, a survey orchestrated by Restaurants Canada in April 2022, noted Canadians tipping at an average rate of 17.6 percent of their total bill.

Eloquently termed ‘tip-flation’, this trend has charted an upward ascent not only in the hospitality industry but also within local cafés, beauty parlors, and fast-food chains. These businesses have integrated automated tip prompts into their payment systems to suggest gratuities ranging up to 30 percent of the billing amount.

The ‘tip-flation’ phenomenon has perturbed many, with an Angus Reid Institute survey revealing that over 80 percent of its respondents believe too many establishments are asking for tips. While the annual inflation rate currently sits at 3.8 percent, above the two percent target set by the Bank of Canada, experts believe that the heightened inflation rates have likely contributed to the rise in tip-off requests.

The business approach towards tips and gratuities being voluntary and devoid of any legal bindings in Canada is common knowledge. However, the integration of tip prompts into payment systems by various businesses exerts unsolicited pressure on consumers to part with a fraction of their income towards gratuities. Conversely, an increasing number of establishments are exploring a service-included business model. This model removes tipping from the equation, with service costs already added to menu prices, guaranteeing higher wages for staff.

Amid this manifold rise in tipping requests, it’s crucial to decipher the potential ramifications. While employees of establishments no doubt benefit from the extra income, customers might feel pressurized to contually extend gratuities. For instance, customers who were previously used to tipping during dining out or drinks are now finding the same expectation at their morning café or fast-food lunch encounters.

One palpable concern is that customers are beginning to see tipping as a way for employers to underpay their employees, instead of it being a token of their appreciation for good service. These mounting requests may even disillusion long-standing customers, who may curtail their frequent visits to establishments pressurizing them for tips, directly impacting the employees who depend on these regular customers for a significant portion of their earnings.

Traditionally, the amount of tip left by customers depends primarily on the cost of the service provided, not the customer’s personal income. A decent tip, ranging anywhere from 15 to 20 percent, depends on the consumer’s perception of the service provided rather than their financial means. Thus, while tipping offers service employees with minimal wages the chance to earn a respectable income, the question regarding its necessity in places where employees already earn a good wage becomes a pressing concern for the financially burdened customer.

While the prevalent discussion orbits around this increasing ‘tip-flation’, our personal stance towards tipping will continue to motivate our decision for now. However, if the rapid increase in tipping requests continues to burden customers, it’s essential to consider avenues to alleviate this pressure. As a potential solution, we may choose to extend our support to businesses where employees earn an adequate wage without the nudging dependence on gratuities. Increased patronage to these establishments could stimulate a wider adoption of this policy across the industry.

While we grapple with the dynamic nature of the tipping culture in Canada, it’s also essential to explore our entertainment options that do not count on such additional costs. Among other leisure time choices, engaging in online gaming and casinos can provide an alternative respite. As a part of the West Island Blog, we take pleasure in listing some of the top online casinos for your consideration. Our curated list ensures an indulgent, yet responsible gaming experience, catering to varying tastes and comfort levels of our readers. We encourage you to explore these platforms, taking into account your personal preferences, the services on offer, and the financial constraints you may have.