Tipping at restaurants: Is 20% the new normal?

According to financial services payment system Square, there appears to be a new normal for tipping at restaurants. The average tip on the Square platform in January 2023 was 20%, up from 16% before the pandemic.

The company also reported that the average tip rose to 17% in 2020 and 2021.

A study by the Angus Reid Institute on tipping in Canada found that 42% of Canadians say the extra cost of tipping is keeping them from going out as much. Canadians under the age of 55 are more likely on average to agree with this sentiment.

“Before the pandemic, payment services company Square reported the average tip on its platform was 16%. In the summer of 2020 and 2021, that average rose to 17%. In January of this year, the average was now 20%.

“Inflation has touched food, housing, and even common customary practices like tipping. Gone are the days of the 15% standard tip, as so-called ‘tip-flation’ has ballooned tip suggestions from point-of-sales machines to as high as 30%.”

The study also found that 3 in 4 Canadians believe tips are just an excuse for employers to underpay their employees.

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