A recent H&R Block survey has ignited debate over Canada's tipping culture, revealing that 67% of Canadians want to abolish tipping entirely. The survey also found that 93% of respondents are annoyed when a card payment machine asks for a tip after little to no human contact.
Growing Frustration with Tip Prompts
Tipping, once confined to restaurants and bars, has expanded to self-checkout counters, airport kiosks, and other low-contact transactions. According to the H&R Block survey, 65% of Canadians now feel less awkward selecting the “no tip” option, and 79% say they will enter their own tip if default options are too high. This shift reflects a broader consumer revolt against aggressive tipping prompts.
Expert Caution: Abolishing Tipping Could Backfire
Mawakina Bafale, a research officer at the C.D. Howe Institute, warns that ending tipping could lead to higher prices and job losses. “Routine prompts for a gratuity in transactions that involve no table service and little to no human interaction proliferate,” Bafale said. “While it may be tempting for policymakers to mandate an end to tipping and sharply raise minimum wages, abrupt changes risk leaving the workers they aim to help worse off as sudden wage hikes could result in job losses.”
Legislative and Cultural Shifts
In Quebec, Bill 72 now requires merchants to display a “no tip” option with equal prominence to other tipping options and mandates that tips be calculated on the pre-tax total. Meanwhile, in countries like Australia and much of Europe, tipping is either included in the bill or uncommon. Canadians are also taking action, with Bafale noting, “For some Canadians, the discomfort has escalated into something closer to a consumer revolt, with more people completely avoiding businesses with aggressive tip prompts.”
Challenges of Eliminating Tipping
Beast Pizza in Toronto attempted to eliminate tipping in 2022 by offering employees $25.05 an hour, but after two years, it reverted the policy due to rising taxes, CPP contributions, and food costs. “Individual restaurants that raise wages and drop tips face a competitive disadvantage against neighbours who keep prices low and let customers subsidize wages,” Bafale said. “So, their attempts to do what they thought was correct became unsustainable without a system-wide shift.”
Public Skepticism on Other Issues
While tipping dominates the conversation, a separate Nanos Research poll indicates that 53% of Canadians oppose allowing private investment in airports, with 15% unsure. The federal government is considering privately funding airports, but public skepticism remains high.
