The list of places you could be asked to tip keeps growing: self-checkouts, drive-throughs, even bakeries. For many consumers, the latest tip-related irritant at checkout is a new phenomenon known as “tip creep.”
Across Canada and the U.S., tip creep is when prompts asking for tips pop up in unlikely places, including bottle shops and jewellery stores. That’s a shift from tradition, where gratuities are typically reserved for dine-in restaurants and bars. Experts say the trend has emerged partly due to the proliferation of digital payment systems.
“To me, the strongest social norm is tipping in a sit-down restaurant,” University of Guelph professor and food economist Mike Von Massow told CTVNews.ca. “The rest have been sort of fuzzy in the past and have become more broad in recent years, particularly I think because (payment) machines can now make it easy to ask for it.”
In countries like Canada and the U.S., many service workers often rely on tips for a significant portion of their income, unlike their counterparts in countries like France, Japan or China, where tipping is almost non-existent.
During the COVID-19 pandemic, tipping surged amid a groundswell of gratitude for restaurant staff, delivery drivers and other front-line service workers, who helped keep businesses stay afloat.
But that generosity began to fade as soaring inflation eroded consumers’ purchasing power. As cash-strapped households sought discounts, many became more leery of extra costs like tips. Meanwhile, businesses continued to encourage higher tips, fuelling the rise of the now-popular term “tipflation.” Many Canadians have cut back on tipping in recent years.
According to a recent survey by H&R Block, 90 per cent of Canadians believe tips are too high, while 82 per cent say tipping is expected in more places than ever before. Almost one in four surveyed say they have been asked to tip “in places or situations that felt uncomfortable or unexpected.”
Among survey respondents, a reasonable tip on average is just nine percent, well below what is usually suggested by most businesses.
In response to mounting public frustration, the Quebec government has recently passed a new law meant to improve transparency in service and consumer transactions. Businesses in the province are now required to calculate suggested tips based on the price before tax. That means if your dinner costs $100 before tax, a 15 per cent tip will now be $15 — not $17.24, which includes Quebec’s combined sales and federal taxes.
The new rules also require restaurants and cafes to display suggested tip options neutrally, with no bolded or highlighted choices. Tipping will also remain optional.
Have you been asked to tip somewhere that you didn’t expect? Do you draw the line at tipping at certain establishments? What’s the highest percentage you feel comfortable tipping?
Share your questions by emailing us at dotcom@bellmedia.ca with your name, general location and phone number in case we want to follow up. Your comments may be used in a CTVNews.ca story.
