A new report by Actual, a tip management and hospitality financial operations company, suggests Canadians are tipping restaurant servers less these days.
The State of Tipping in Canada 2026 Report, based on a survey of tipped and non-tipped hospitality workers across Canada conducted with Angus Reid, found that the majority (67%) of tipped workers say tips have declined in the last two years, but it also reveals that tipping is more important than ever, and transparency in tip division is top of mind.
“This data confirms what we’ve heard from the industry for years: tipping is declining at the exact moment hospitality workers need it most,” said Afshin Mousavian, CEO and co-founder of Actual. “Most Canadians don’t realize that restaurants run on razor-thin margins, so for many workers, a tip is how they cover rent and groceries. Workers aren’t asking for more tipping; they’re asking for tips that reflect the service they provide, and clear answers about how those tips are divided.”
Key Findings:
- 67% of tipped workers report decreased tip amounts over the past two years, up sharply from 39% in 2024
- 43% of tipped workers rely on tips to cover essential expenses like rent and groceries
- 76% of workers say tipping incentivizes better service, and similarly, 62% believe tips should be tied to quality of service, not the total bill
- 85% of hospitality workers agree tip division policies should be clear and transparent for both employees and customers
- 61% of tipped workers say tip income has influenced their decision to stay in hospitality
- 90% of workers are aware of how tips are divided at their own workplace
As the country grapples with tipping standards, Actual said its survey finds tipped workers are in fact feeling the pinch of this uncertainty, and with rising inflation and cost of living, tipping is more important to hospitality workers than ever.
“Tips are critical to the livelihoods of many hospitality workers, and the majority believe they should be earned, not automatic, with tipping directly tied to the quality of service provided,” it said.
“While the industry has made real strides in tipping transparency internally, that clarity has yet to reach the customers footing the bill, again reinforcing the disconnect between the customer and the people offering the service, creating further mistrust.”
The full State of Tipping in Canada 2026 Report can be found at onactual.com/blog/tipping-trends-in-canada-2026-what-hospitality-workers-actually-told-us
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