In Canada, tipping is deeply ingrained into the tapestry of our dining and service culture. For many, it serves as a way to convey satisfaction and offer service providers an additional token of appreciation.
Yet, as more and more services prompt Canadians to provide tips, it's left many patrons wondering whether this custom gone too far. Rather than solely recognizing exemplary service, there's a growing concern that tipping has evolved into a societal expectation.
A new survey conducted by Hardbacon, a leading personal finance app, sheds light on the evolving landscape of tipping habits across the nation. Referred to as 'tipflation,' the phenomenon of increasing tipping norms alongside rising expenses, particularly in the realm of dining and service, has caught the attention of analysts and consumers alike.
Tipping Trends Across Different Establishments
One notable revelation from the survey is the substantial increase in the number of Canadians opting to leave tips in establishments without table service. Previously uncommon, a staggering 24% of Canadians now admit to tipping in such venues, attributing the shift in behaviour to the convenience of payment terminals. Interestingly, despite this surge, the average tip in restaurants remains consistent with the traditional 15% norm.
| Type of establishment | Average tip | Most common tip |
| Sit-down restaurants | 15.14% | 15% |
| Hairdressers and barbers | 10.91% | 10% |
|
Fast food and cafés without table service |
2.14% | 0$ |
| Uber | 9.40% | 10% |
| Meal delivery apps | 10.26% | 10% |
Generational Patterns in Tipping Behavior
A noteworthy observation from the survey is the striking generosity of Generation Z adults (aged 18 to 27), emerging as the most liberal tippers among age groups. Following closely behind are baby boomers, a trend attributed to their higher purchasing power and perhaps ingrained cultural norms surrounding tipping etiquette.
| Generation | Average Tip (at sit-down restaurants) |
| Gen Z Adults (18-27) | 16.58% |
| Millennials (28-43) | 14.77% |
| Gen X (44-59) | 15.05% |
| Baby Boomers (60-78) | 15.24% |
| Post-War Gen (79 and over) | 13.85% |
The Influence of Payment Terminals
With the gradual decline of cash transactions in Canadian stores, payment terminals have become ubiquitous, presenting customers with tipping options more frequently than ever before. The survey underscores that 62% of respondents have admitted to leaving higher tips than initially intended due to prompts from these terminals. While this tactic appears effective in encouraging larger tips, it's important to note that not all Canadians adhere to this practice universally.
The Impact on Various Industries
Cafes, bakeries, and restaurants without table service emerge as the primary beneficiaries of this trend, with 65% of respondents acknowledging that they've tipped solely due to the option presented by payment terminals. This shift in behaviour signals a broader acceptance of tipping norms in establishments where it was previously uncommon, indicating a subtle yet significant transformation in consumer habits.
You can learn more about Hardbacon’s tip survey here.
