Tip creep and 'tip-flation' on the rise

Tipping has been a common practice in restaurants for decades, but lately it's causing quite a stir.

Some diners are experiencing what they call "tip-flation" and "tip creep," and the debate over the role of tipping in our dining experiences continues.

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Amir Rahim, owner of Grounded Kitchen, emphasizes the importance of tips, saying, "Without that money, I can't afford to pay people to do the job."

However, not everyone is on board with the traditional tipping system.

"I think it should be added to the price of the food. And then you don't tip at all," said Cheryl, an Ottawa resident.

The issue of tip creep has become a concern.

"The tip fatigue that guests are feeling is because it's happening everywhere else. Leave the restauranteurs alone," says Rahim.

It's a sentiment echoed by Mike von Massow, a food economist from the University of Guelph.

"Tipping is a social norm," says von Massow. "And it's less and less clear what that norm is. Do I tip at the grocery store? Do I tip the lady who grooms my dogs?"

During the pandemic, many people showed their support for local businesses with generous tips, and these rates seem to have become the new normal, with the baseline now at 18 per cent.

Tracy MacGregor, Restaurants Canada VP Ontario says, "Customers just started tipping more. I think they were really just responding to the number of times and the restrictions and all of the things that were happening in the industry. And they really just wanted to show their appreciation."

For some, tipping is a given, and they are happy to continue the practice.

"I pretty well tip every time, and if the service is, you know, above and beyond, I reflect that in my tip for sure," says Ottawa resident Shane Bakker.

However, not everyone is as enthusiastic.

"Like a drug store, I take it off the shelf, I take it to the cash; I'm doing the work, so I don't tip them," says Cheryl.

Another resident adds, "Like at convenience stores and things like that, places that they didn't really do anything for you, you're doing the service yourself, self-serve, and they ask you for a tip anyway. I don't tip then."

"When somebody is taking a loaf of bread off a rack and putting it in the bag, I don't see the point," says another resident.

As for Amir Rahim, he says with the costs of running a restaurant continuing to rise, tips are becoming more important than ever.

"When there is a tip option in a restaurant, rest assured, the business actually needs that income in order to stay open," says Rahim.