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Some restaurants no longer accept tips in favor of providing their employees higher wages.

Some restaurants no longer accept tips in favor of providing their employees higher wages.

On May 30, Devinder Chaudhary, the proprietor, and Robert Lamieux, a server, were visiting Aiana Restaurant Collective in Ottawa.

Chris Locke was taken aback when he was given the chance to tip for a recent cannabis store purchase. Since the restaurant had experimented with different strategies of gathering and dispersing tips among personnel, as well as lately deciding to do away with tipping altogether, Mr. Locke had been the executive chef at Marben, a downtown Toronto institution.

Mr. Locke described his encounter with the marijuana business as "simply a technique for companies to try and better compensate their staff without having any responsibility for that compensation." It's as if we won't take care of you but will ask our customers to help pay for your salaries instead.

Tipping is a controversial topic.

Because of ingrained cultural norms, there is frequently an implicit internal conflict between paying employees for providing quality service and incurring additional costs for providing mediocre service. That discomfort may have increased with the addition of inflation and rising tip rates.

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Tipping is a legitimate way for front-line employees like baristas and budtenders to earn greater income, and it frequently makes the difference between a worker's ability to pay their rent and other monthly expenses. However, tipping can arouse feelings of injustice and inequity in kitchen staff and members of marginalized groups who work as servers. After all, why should someone be arbitrarily rewarded based on their role in a restaurant or their appearance, race, gender, or sexual orientation?

Marc Mentzer, a professor at the University of Saskatchewan's Edwards School of Business who has spent decades researching North America's tipping culture, said that the more he thinks about it, the more he comes to the conclusion that tipping is an irrational quirk that is deeply ingrained and extremely difficult to overcome. In a time when we are worried about how factors like race, gender, and age are affecting workers' compensation, it is especially outrageous.


Anecdotally, tipping rates and the variety of services that clients are expected to tip for appear to have increased throughout the COVID-19 pandemic, primarily due to a newfound empathy that the general public experienced for front-line workers who were either laid off from their jobs due to lockdowns or had to take the risk of preparing and delivering food and other goods.

We observed an increase of the tipping norm as a result, according to Michael von Massow, a University of Guelph professor whose study focuses on how people perceive the cost of food.

There is some concrete evidence to support such pattern.


Canadians have been tipping more generously during the pandemic, according to data provided to The Globe and Mail by Square, the San Francisco-based payment processing company. On average, customers were tipping 17.9% on in-person purchases, up from 16.6% before the pandemic. The proportion remained constant over the first three months of 2022.

According to Square, 18.2% of customers left tips in restaurants, pubs, and spas during the holiday season of 2021. That percentage was 16.8% prior to the epidemic.

The projected tipping percentage gradually rises, a phenomenon known as "tip creep" that is made worse by the introduction of chip card readers, according to experts like Drs. von Massow and Mentzer. The client is presented with a keypad and preset percentages, which now frequently begin at 17%. You are left with no choice but to tip that much or more because of the embarrassing scenario it creates, according to Dr. Mentzer.

He contends that even prior to the epidemic, there was severe financial strain on restaurants. 

The culture of tipping in North America is distinct. For instance, tips are not expected in Europe, Great Britain, or Australia, not even for bar service. In some bars and restaurants, finalized bills include a service charge, which is typically between 10% and 15%. The money from this charge goes to the staff.


The history of slavery is partially responsible for the development of tipping in modern America. Many of the positions that were open to former slaves after the Civil War and the end of slavery were those of waiters and railroad porters. According to study conducted by Saru Jayaraman, the head of the University of California, Berkeley's Food Labor Research Center, employers decided not to pay those workers directly and instead relied on customers to leave them tips.


The research by Ms. Jayaraman suggests that restaurant owners made good use of the opportunity to pass on the cost of paying their employees to patrons, making tipping the predominate method of payment for servers.


Long-time Toronto waiter and bartender Rashid Mohiddin is conflicted about leaving tips. Although he is aware that the tipping system is inherently unfair, he would like to have it in place because doing otherwise would have a substantial impact on his weekly income.


The tipping culture, according to Mr. Mohiddin, is a factor in the appeal of working in restaurants. Your hourly compensation may range from $30 to $40 if you work in a respectable environment. Will my future employer at a different restaurant be willing to pay me that much?

He added that he is aware of how expensive it can be for small restaurant owners to pay their staff more due to the exorbitant rents in places like Toronto and Vancouver, which are a thin-margin industry.


However, Mr. Mohiddin has experienced firsthand how unfair the tipping system can be as a colored male. Do racialized individuals receive lower tips? Naturally, they do.


"And at the end of the day, you're waiting on that tip, regardless of how the customer behaves. You must apologize and show kindness.

"And at the end of the day, you're waiting on that tip, regardless of how the customer behaves. You must apologize and show kindness.


Due to this fundamentally unfair dynamic, seasoned restaurant owners like Mr. Locke of Marben chose to completely do away with tips in favor of paying their staff higher compensation, even if it meant raising menu pricing that would turn off consumers.



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