Canadians are tipping less, and hospitality workers are feeling it

Whether it’s the high tip percentage options offered at points of sale or inflation in general, Canadians are taking multiple factors into account before deciding to tip less or skip the tip entirely. Per a September 2026 Restaurants Canada report, eight-in-10 are cutting back on restaurant visits to make ends meet.

“I started to not care for [tipping] when every little thing started to ask for tips, like pick-up, mobile order, take out, etc. I only tip if I am sitting down at a restaurant and servers are working, like it was ‘back in the day.’ Not for take out, not for getting a coffee, pick up,” said one disgruntled Toronto resident on Reddit.

Another said they “despise tipping” and feel slightly bad for hitting 0% at the point of sale, but believe that paying employees is “not my responsibility as a customer.”

A new report from tip-management company Actual™ (formerly named Atlas) suggests the people on the receiving end are noticing the difference, too.

The survey was conducted in August 2026 by Angus Reid on the tip-management firm’s behalf. Its findings noted that 67% of tipped hospitality workers said their tips had decreased over the past two years.

Ontario workers saw the steepest decline, with a whopping 72% of tipped workers reporting a drop. The share was 39% in 2024.

Many workers count on tips for the basics

For a lot of the people surveyed, tips aren’t a bonus. The report found that 43% rely on tips to cover essentials like rent, groceries, and bills. That figure rises to 51% in British Columbia and Atlantic Canada.

Tips also play a role in who stays in the industry. About 61% of workers said that tip income influenced their decision to remain in hospitality, and the report says that share climbs to 74% among servers and other front-line staff.

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Restaurants don’t have much room to make up the difference through higher pay.

“According to Restaurants Canada, the industry benchmark for a healthy restaurant is a 10% profit margin. The national average has sat below 5% for years, and in 2024, average restaurant profits fell to just 2.8%, an all time low,” the report reads. “With food and alcohol costs, labour shortages, and inflation all rising at once, most operators are running on very thin margins already.”

Should a tip reflect service?

Most of the workers surveyed aren’t asking customers to tip more regardless of what they get. 

Some 76% believe tipping encourages better service, and only 6% say it hurts service. About 62% say tips should reflect service quality rather than a flat percentage of the bill. That view was less common in Quebec, where 50% agreed, which the report links to the province’s May 2025 tipping rules. Among all workers surveyed, 67% of women held this view compared with 57% of men.

There’s also a gap in how workers think customers see things. Only 15% believe customers understand the financial impact of tipping, and 41% say customers understand little or nothing about it.

Tipping culture has become a sore spot in Canada

The worker survey lines up with how many Canadians say they feel about tipping. In a February 2026 Angus Reid survey commissioned by H&R Block Canada, 93% said they’re annoyed by tip prompts at self-serve locations such as fast-food counters. About 89% said current tip percentages are excessive, and 41% said they actively avoid businesses known for aggressive tip requests.

Behaviour appears to be shifting too. In the same survey, 67% said they select “no tip” more often than they did a year earlier, and 79% said they enter their own amount rather than accept a suggested percentage. And 67% said tipping should be eliminated altogether, while 88% said it lets employers underpay staff.

Experts quoted by CP24 in January say the card machine itself is part of the story. Wayne Smith, who teaches hospitality and tourism management at Toronto Metropolitan University, described a kind of social anxiety that comes from servers standing by as customers decide, a change from the days when diners signed the bill and left.

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Tipping rules are starting to change in Canada

Provincial governments have been stepping in. Quebec’s tipping rules took effect May 7, 2025, requiring payment terminals to show neutral and uniform suggested tip options, calculated on the pre-tax amount.

The Actual report also flags changes in other provinces. In Ontario, owners can take part in tip pools only if they regularly perform tipped work. Starting in September 2026, Nova Scotia requires employers to give written notice of their tip-pooling policy and keep tip records.

Workers appear to want more clarity, too. According to the report, about 85% said they want clear, transparent policies on how tips are divided, down from 91% in 2024. Only 90% of workers are aware of their workplace’s tip division policy.

If you’re a customer who’s tired of tip prompts, the surveys suggest you aren’t alone. You can enter a custom amount, tip for good service and skip the screen when the counter service hasn’t involved much service at all.

Read more about tipping:

• Canada’s tipping culture can feel like a minefield for newcomers
• Tipping in tough times: How to tip without overspending
• New tipping rules in Quebec aim to make things easier for customers
• How much should you tip at restaurants in Canada?

About MoneySense Editors

MoneySense editors and journalists work closely with leading personal finance experts in Canada. Since 1999, our award-winning magazine has helped Canadians navigate money matters.

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