Tipping Point: How Tipping Culture Has Spiraled Out of Control
Tipping culture has evolved far beyond its original purpose, creeping into nearly every aspect of daily life and leaving many feeling pressured to tip for even the simplest of services. This shift has sparked debates about fairness, and the responsibilities of businesses to pay fair wages
By: Ashima Panikar
In the past, the act of tipping was seen as a simple gesture of gratitude. Tips were given as a result of wanting to show thanks for exceptional service. In more recent times, however, this act has become almost expected and unavoidable. Requests from tips have gone beyond good service, but instead have become an expectation regardless of the quality of service, or the type of transaction taking place. In some extreme cases, tips have even started being asked for in self-service locations. What once began as a custom of voluntary gratitude, has transformed into an essential part of the service industry’s worker incomes. As this shift continues to take precedence over the country's tipping culture, the debate over its fairness sparks conversation. Businesses must look into redefining how they compensate their workers in order to ensure fair wages, rather than relying on tips for compensation and ensuring fair wages. By not relying on tips to make up for low pay, they can alleviate the pressure on customers to tip and create a more just system for both their patrons and workers.
Tipping originally began in Europe during the 17th century. It was usually given as a way to show appreciation to mostly wealthy in-person service roles like butler of chaffers, usually in the form of cash. Tipping culture arrived in North America when wealthy people who traveled abroad came back and brought with them the custom of tipping. Even though it initially followed the European trend of being a form of gratitude, it quickly became xpected in various locations.
In modern times, when you go out for a sit-down meal, a typically expected tip comes out at 15-20% but has continued to see a rise, with those numbers even starting to seem rude. Outside of dining, tips are almost expected at any service location. Ranging from salons to taxis. Because of this customers feel almost a tip exhaustion in a way. The question is then posed as to why this habit of tipping has begun to spiral in this fashion.
A lot of businesses these days have been using tips to compensate for the low wages their employees receive. This can be the result of facing pressure from the supplier and instead of raising the wages of their employees, they use the illusion of sales machine prompts to encourage higher tips. This ultimately hurts both employees and customers. Since customers end up bearing the responsibility of supporting service workers and the employees don't receive a steady form of livable payment.
In a survey conducted by the Angus Reid Institute, it was recorded that 3 in 5 Canadians, or almost 59%, wanted to shift to a service-included model as many see in places like Europe. This would mean that businesses are responsible for paying their employees a livable wage and not have tipping a need anymore. Many businesses and restaurants have recently started to shift to this model. An example of this is the Toronto-based restaurant Endulis. They are proud of having a pre-set menu price which waives the need for patrons to provide an additional tip. Supporting these kinds of businesses would be greatly beneficial in shifting the trend and inspire other businesses to follow suit.
Tipping can be a wonderful way to show appreciation and gratitude for the people working hard to serve you. The problem arises however when business owners take advantage of that to not compensate their employees in the proper manner. The current trend of the tipping culture has shifted so far from its original purpose. The best way to enact change and make things better is to support those businesses that are actively trying to make a difference.
Links:
https://angusreid.org/canada-tipping-service-hospitality-included-tipflation-tip-creep/
https://www.ontario.ca/document/your-guide-employment-standards-act-0/tips-or-other-gratuities
https://www.nytimes.com/2023/11/17/your-money/tipping-self-checkout-inflation.html
https://curiocity.com/toronto-restaurants-no-tipping-hospitality-included/