Starting 2018, the Ontario government has put in place a new minimum wage increase that is set to also increase next year as well. Now there is a lot of opinions surrounding this steep incline, however rising tips are a concerning act happening in the industry of restaurants.
Inside the restaurant industry, the people who take your order, ring in your check and collect the tip at the end get paid less per hour to offset the additional money made in tips. However the tip amount they walk away with a staggering 93–97% of the tip.
I am pretty young and haven’t been going out to dinner for very long. But I have seen the norm of tipping 10% for okay service and maybe 15% for great service change into an expect 17% for okay to 25% for great, and its starting to get ridiculously.
Last summer I had the opportunity to go to Japan, and during my time there I did not tip anything because that is not the social norm. They believe everyone should always have the same respect and politeness and refuse extra offerings. Not even when I had a “keep the change” of 1 Yen ($0.01 CA) situation did they take it.
I am putting my foot down to rising costs all around, I am going back to the roots of tipping and tipping 10% for good service and only 11% on great service.
The reasoning is simple, lets take a date night for example, 2 burgers and 2 beers out at a restaurant.
Looking at the example above, you see that the increase is very close to the overall increase of minimum wage, which is what it should be following. With minimum wage going up, their responsibilies didn’t not grow nor was there any extra work for getting the extra bump because it is the law.
As minimum increases again next year, and rising costs follow behind them, I believe this will be a more popular route for people as dining out continuous to stay popular without the staggering increase of tipping and added discomfort because of it.