Canada

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The barista behind the counter handed Montelli the water bottle and turned the point-of-sale (POS) machine — with large tip prompts for up to  20 per cent — to him.

Bruce McAdams, an associate professor at the University of Guelph's school of business and economics who researches tipping, isn't surprised that customers are starting to rebel against tip-flation.

During the COVID-19 pandemic, McAdams says average tip amounts left by customers increased by about five per cent in an effort to help service workers whose jobs were hit hard by lockdowns.

The reaction to tipflation — which could be described as tip-deflation — is probably driven by a mix of factors, in particular the rising cost of goods and services making it more difficult to leave any tip at all, according to McAdams.

McAdams says consumers are also beginning to see tips less as a bonus given for good service, and more as an expectation to help low-wage workers, which shifts the responsibility of paying them fairly onto the customer.

A 2023 Angus Reid poll found that 59 per cent of Canadians surveyed said they'd prefer a "service-included" model, which would see an end to tipping and employees wages increase instead to compensate them.

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