The pressure to tip is increasing – but you continue to have a alternative
“People need to do a little soul-searching,” said Stacy Yanchuk Oleksy, CEO of Money Mentors. “Just because someone charges 30% at the ATM doesn’t mean it’s justified; it doesn’t mean you have to. And I think we need to get around the culture of tipping, which is so guilt-ridden: ‘If you don’t tip, that somehow says something about you,'” she said. “Sometimes it’s just that you can’t afford it, and that’s okay.”
Yanchuk Oleksy said she recommends people to consciously manage their funds and examine their budget to find out what they will afford. For example, it might make sense to choose up the food yourself as an alternative of tipping for delivery. She said consumers might also select to depart a special tip than required.
presented
Best cashback card with easy approval
SimplyCash card from American Express
Earn at the least 1.5% money back on all purchases and three% on purchases made in US dollars. Redeem rewards every time you would like.
GO TO WEBSITE
Interest rates:
21.99% Purchase, 21.99% Cash Advance, N/A Balance Transfer
Welcome offer:
Value $100
Earn a 5% money back bonus on all purchases (as much as $2,000 in purchases). This is along with your day by day cashback earning rates. That’s as much as $100 in bonus cashback.
presented
Silver: Best cashback card
CIBC Dividend Visa Infinite Card
Get 4% money back on gas and groceries and save on the pump with exclusive fuel discounts.
GO TO WEBSITE
Interest rates:
21.99% Purchase, 22.99% Cash Advance, 22.99% Balance Transfer
Welcome offer:
Value of $250
Join and earn as much as $400 in value, including annual fee reimbursement for the primary 12 months.†
presented
Bronze: Best cashback card
Interest rates:
20.95% Purchase, 22.95% Cash Advance, 22.95% Balance Transfer
Welcome offer:
Value $100
Apply by January 30, 2026 and receive a further 10% cashback (as much as $100) while you spend $1,000 inside the first two months.
A recent H&R Block survey found that 93% of respondents were annoyed when card machines asked for suggestions for purchases or services that normally didn’t involve suggestions. The same amount said that tipping is uncontrollable and is applied to goods and services that they imagine are unjustified.
The survey was conducted February 19-23 amongst 1,545 Canadians who’re members of the Angus Reid Forum, an internet market research platform.
Why tipping fatigue sets in
Kelley Keehn, CEO of the Money Wise Institute, said there may very well be fatigue as consumers are increasingly asked to tip. “We have moved away from tipping for service and now sometimes tip for transactions,” she said. For sit-down meals at a restaurant, Keehn said it is best to proceed tipping to support staff, but for things like counter service, it’s more optional. She said it is also necessary to factor suggestions into the budget, especially for larger ticket items like large family dinners.
Wayne Smith, professor and director at Toronto Metropolitan University’s Institute for Hospitality and Tourism Research, said that before the pandemic, it was common practice to tip about 15% at restaurants. Today, he said, tipping standards in restaurants are closer to twenty%, with increases within the tipping percentage accompanied by an inflation-driven increase in the general price.
“It really makes tips more expensive and costly,” he said. “There are numerous studies being done across Canada that show people don’t tip at all.”
The rise in tipping costs can also be because of the widening gap between wealthy and poor, Smith said, which could impact the best way Canadians interact with the service industry. “If you want to have a real service encounter with people, it’s going to be very expensive. Otherwise, you’re ordering on your phone and picking up your stuff yourself… so the gap in the service model is getting bigger and bigger,” he said.
The article continues below promoting
X
Overall, Smith said the practice of tipping is a private alternative and folks should tip what they feel comfortable with based on their experience.
What is a smart tip in 2026?
Neesha Miljanovic, senior operations manager at Waterworks Food Hall in Toronto, said showing higher tipping options to customers can sometimes discourage people from tipping in any respect. Instead, she said lower options could allow some businesses to potentially receive more suggestions based on volume.
As for her own tipping practices, Miljanovic said she follows some broad guidelines.
For a delivery or takeout experience with minimal interaction, she rounds as much as the closest zero and orders directly from an organization as an alternative of through third-party apps. For counter service, she says she suggestions between 10 and 15 percent, and for bar service, she generally rounds up the change to a dollar or two.
For one restaurant, she stated that she would give a spread of suggestions based on her experience. “15% to me is terrible service, 18% is ‘I’m polite, that was fine,'” Miljanovic said. “20% is standard for me, and anything above that is an opinion or a feeling of ‘You really did your best to make my experience here incredible and the whole team did a great job and I want that to reflect financially as well.'”
Overall, it is important for purchasers to keep in mind that tipping is at all times voluntary, aside from larger groups where the tip is routinely added, she said.
“You don’t have to tip. The whole idea is that if you had a good service experience, you want to give them something special, it’s not mandatory. At any payment terminal you can press zero, you can press bypass, you can customize. So the guest experience actually has a lot of opportunities to do that,” Miljanovic said.
Get free MoneyDown financial suggestions, news and advice in your inbox.
Read more news:
