Some restaurants are moving to a model where there is no tipping, wages are higher, and the bill covers everything
People who want to leave tips at the Folke restaurant in Vancouver don’t usually get very far.
“They’ll put it under a napkin or under their plate,” said Pricilla Deo, who is also a co-owner. “If we catch it while they’re still here, we just give it back to them and remind them nicely that we don’t accept tips.”
She says that the money is used to pay for staff dinners when customers leave without leaving a tip.
When the vegan restaurant Folke opened in June 2022, it did not accept tips. Deo says that employees get full benefits and make much more than the minimum wage ($15.65 per hour in B.C.ll benefits and make much more than the minimum wage ($15.65 per hour in B.C.). All costs, like salaries, have already been built into the prices on the menu, so customers just have to pay the bill.
Deo said, “It was very important to us to have a workplace where everyone was treated equally.” “It’s not up to our customers to make sure our staff gets paid right.” “It’s our job to make sure that our employees are taken care of.”
Recent polls show that many Canadians would like to see this idea take off since inflation has caused menu prices to go up.8.2% higher in January than the same month the year before.), and people who eat out say they feel pressured to leave bigger tips.
A new Angus Reid pollIt was found that 59% of Canadians polled would prefer an all-inclusive model where staff are paid a higher wage but don’t have to tip.
More than three out of five Canadians also said that they have been asked to tip more often and give bigger tips in the past few years.
The poll sent online questions to 1,610 adults. 19 times out of 20, a probability sample of this size would have a margin of error of plus or minus two percentage points. This is only to be used as a comparison.
There is also solid proof that Canadians are tipping more. Between January 1, 2019, and January 1, 2023, the average tip went from 16% to 20%, according to Square, a technology and payment services company that works with hundreds of thousands of Canadian businesses.
What’s behind the push for bigger tips
Marc Mentzer, a professor of organizational behavior at the University of Saskatchewan’s Edwards School of Business, says that there are two big reasons why customers are giving bigger tips.
First, he says that the pandemic has made people feel bad for the hospitality business, which lost a lot of money during lockdowns.
Second, Mentzer said that the pre-programmed tip amounts on credit and debit card readers may make some people tip more.
“There are percentages that are pre-programmed into the device,” Mentzer said, adding that the self-select tip option can be hard to use. “It would be even more awkward if I had to ask the server, “How do I leave a tip that isn’t the norm?”
Watch: Some restaurants are doing away with tips.
Back at Folke Restaurant, customer Anshul Bhandari said that the amounts that card readers suggest as tips have gone up by a huge amount over the years.
“It’s gone crazy—up to 30 percent, even for takeout,” he said. “From the point of view of the customer, it’s not nice.”
Bhandari likes that the model is clear and doesn’t involve tipping. Jason Yip, a customer, agrees.
“I’d rather know exactly how much the bill will be at the end of the day and that the server is getting a fair wage,” he said.
Tipping is an important part of Canadian culture
Mentzer said that he doesn’t like tipping in general because a server’s age, gender, or race could affect how much they make in tips.
“It’s a really strange way to pay people back,” he said. “Human rights are a very important issue.”
In a number of countries, includingJapan and DenmarkService is already included in the bill, so tips are not expected.
Still, Mentzer said he thinks tipping will stick around in Canada because it’s part of our culture.
Richard Alexander, vice president of Restaurants Canada for the Atlantic region, agrees with this idea. He thinks that no-tipping restaurants make up less than 2% of all restaurants in the country.
“The bonus is set in stone,” he said. “What we hear from customers is that they’d rather be in charge.”
Mike Stepko is a customer at Lazy Daisy’s Cafe in Toronto. He said that he always leaves a tip, but he would like to be able to add to it when necessary.
He said, “There are times when the service is pretty good.” “This is where you want to give 20 to 25%.” That shouldn’t ever change, in my opinion.”
Another problem is that many restaurants may not be ready to switch to a model with no tips because they are afraid of what will happen.
Dawn Chapman, who owns Lazy Daisy, thinks this is a good idea, but she said she wouldn’t do it herself unless it was the norm all over Canada. Chapman thinks that in order to raise wages, she would have to raise menu prices by 20%.
She said, “It’s too dangerous.” People might come in and say, “I don’t want to spend $15 on a breakfast sandwich.” “I’m going to go somewhere where I can pay $11 and leave a 10% tip.”