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

A recent report reveals that economic pressures are causing people to dine out less frequently and tip less, particularly in Atlantic Canada. Sam Molloy, manager at Whiskey’s Lounge in Dartmouth, N.S., says he has observed a decline in both dining out and tipping. Catherine Paulino, owner of Chanoey’s Pasta, reports a significant 50-60% decrease in tipping compared to the previous year.

According to the report, 60% of hospitality workers in Atlantic Canada experienced a decrease in tips over the past two years, the highest rate nationally at 67%. Ontario workers were most affected, with 72% reporting a decline in tips. For 43% of respondents, tips are essential for covering essential expenses such as rent and groceries, a trend particularly pronounced in Atlantic Canada and British Columbia.

Afshin Mousavian, CEO of Actual, the company that conducted the survey, described the hospitality industry as being in a "tipping recession." He emphasized that employees and businesses are also feeling the economic strain. The survey of 506 Canadian adults in the hospitality industry found that 96% of respondents in Atlantic Canada were aware of how tips are divided, the highest level of transparency.

Some restaurants are experimenting with eliminating tipping altogether, as seen at The Bonfire in Halifax, which pays employees a guaranteed hourly wage and shares profits with staff. While industry organizations acknowledge the trend, they believe tipping remains a vital cultural aspect of dining out. Workers acknowledge the rising costs and hope for some relief.