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The tipping point for tipping?

The 2024 Hospitality Tipping Trends Survey by Atlas and Angus Reid, reveals that while a majority (71%) of respondents stand firm that tipping is important, an increasing number are prioritizing higher overall compensation.
Michelle Warren smiles
Man holding a tablet with tipping screen inside a restaurant

While tipping isn’t the norm as most convenience stores, some stores that offer foodservice do invite customers to tip, but how 

With the cost of living at an all-time high, conversations and opinions around tipping and wages have escalated, according to The 2024 Hospitality Tipping Trends Survey from Angus Reid, in partnership with Atlas, a platform automating hospitality operations.

  • While a majority (71%) of Canadian hospitality operators believe that tipping is important, an increasing number (34%) are prioritizing higher overall compensation.
  • A staggering 91% of Canadian hospitality operators believe that tipping practices should be clear and transparent for both employees and customers, with 21% of respondents having no idea how much of the tip reaches the intended recipient.
  • The majority (66%) of respondents want tips to be exempt from income and payroll taxes, and 41% of hospitality operators are looking for clearer regulations on tipping practices. 
  • As rising living costs continue to affect Canadians, over the last two years, tipping practices have decreased for 39% of operators.
  • When it comes to how tipping decisions should be made, 47% of participants advocate for tipping as a voluntary gesture from the customer, particularly favored by 67% of respondents in Saskatchewan. Additionally, 37% believe tipping should be based on the quality of service provided.
  • Half (50%) of respondents see an increase in tips around the holidays, with 29% seeing a 10% increase.

 

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“This survey makes it clear that hospitality workers are calling for fair and more transparent compensation models,” Afshin Mousavian, CEO and co-founder of Atlas, said in a release. 

As tipping practices evolve, respondents outlined a desire for changes in government policies regarding tipping and hospitality operations.

  • The primary request, supported by 41% of respondents, is for clearer regulations on tipping, with the highest support in Alberta (54%) and Quebec (50%). 
  • Additionally, 40% advocate for more support for hospitality operations, with strong agreement in Atlantic Canada (56%) and Ontario (43%). 
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