‘Tipping recession’: Atlantic Canadian hospitality workers feeling the pinch

A recent report reveals that economic challenges are causing people to dine out less frequently and tip less frequently in Atlantic Canada. Sam Molloy, manager of Whiskey’s Lounge in Dartmouth, N.S., explained that customers are struggling to afford dining out. Catherine Paulino, owner of Chanoey’s Pasta, observed a 50 to 60 per cent decrease in tips compared to the previous year.

Nationwide, 67 per cent of tipped workers reported a decline in tips, while 60 per cent of hospitality workers in Atlantic Canada felt the same. Forty-three per cent of respondents indicated they rely on tips to cover essential expenses, a figure that is highest in Atlantic Canada and British Columbia at 51 per cent. Sam Molloy emphasized that tips are crucial for workers to manage rising costs.

The survey, conducted by Angus Reid for Actual, a Toronto-based company, sampled 506 Canadian adults working in the hospitality sector. CEO Afshin Mousavian called it a "tipping recession," noting that the industry is feeling the same economic pressures as consumers. Transparency regarding tip distribution was reported as strong in Atlantic Canada, with 96 per cent of respondents aware of how tips are divided.

Some establishments, like the Bonfire in Halifax, are opting out of tipping altogether, opting for a no-tip policy and paying employees a base wage with a share of profits. While tipping remains a significant aspect of the restaurant culture, workers acknowledge customers' challenging economic circumstances but hope for some relief.