Tipping, in this economy? How tipping culture is evolving

Toronto local Teagan Batista said she used to be asked to tip 12 to 15 per cent, but nowadays restaurants and other businesses are asking for 18 or 20 per cent.

With the cost of living increasing, she said she understands the pressure businesses feel to get more tips — but that puts pressure on customers who are also feeling the heat.

"The restaurant industry is hard and … money is not great for everybody right now. So I get it," she said.

"But it's also a little bit off-putting when I feel like I just spent all this money and now I have to pay you extra, kind of, for doing your job."

Underscoring locals' ability to enjoy their summer is their ability to tip amid high inflation. 

Industry stakeholders say government intervention is needed, though one expert says the market may be forced to adapt before politicians step in. 

"Once again, the tipping culture has become where it's just expected, regardless of the level of service," said Wayne Smith, a professor and the director at the Institute for Hospitality and Tourism Research at Toronto Metropolitan University (TMU).

"I could see very, very close in the future, you're going to have serving and non-serve sections," he said.

Smith said stores in the United States are starting to split their dining space into two sections, with those in the non-serve area receiving minimal service in exchange for a cheaper bill. 

Since technology, such as tablets and robots, can now take people's orders and can replace some servers, he said it's only a matter of time before the market adapts to models where tipping as we know it is reformed.

"That's when it puts the control back in the customers hands," he said. 

Ontario's biggest restaurant association says the current tipping system is an aspect of North American culture that's hard to kick — even for businesses that want to try.

Tony Elenis, president and CEO of the Ontario Restaurant Hotel & Motel Association, said they encourage their members a no-tipping model when possible — which often involves raising prices to pay for wage increases and benefits — but it usually isn't financially viable, saying those who try often switch back to tipping systems.

"Not too many want to take the risk," he said. "That's the issue."