The Future of Tipping in Hospitality: An Exploratory Study on Consumer Attitude in Canada

Sylvain Charlebois,Poppy Riddle,Janet Music

doi:10.5539/ijbm.v17n4p53

Sylvain Charlebois, Poppy Riddle + Show 1 more

Open Access

https://doi.org/10.5539/ijbm.v17n4p53

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Abstract

This exploratory study examines the perception of gratuity behaviours in Canada during the COVID-19 pandemic. Using a nationwide survey, results were analyzed using statistical and cross tabulation analysis and interpreted through a prosocial spending framework to understand consumer behaviour in which food service patrons perceive emotional benefits from the experience. We find tipping is still strongly supported and most do not anticipate this to change. Social expectations of tipping amounts have not changed and remain at 15% (restaurant) and 10% (deliveries). Though most respondents perceive an increase in social expectations during the pandemic, there seems to be a slight decrease in support for tipping with the youngest age range and more supportive of tipping alternatives. Financial impacts of income loss may have contributed to less use of tipped services but does not seem to affect tipping behaviours. With people feeling in control of their own decisions, and perceive it as benefiting others and enabling connection, there is still strong support for tipping as a social norm.

Highlights

Gratuity or tipping in Canada is socially constructed and inherited from English and American practices in the food service industry
When asked about social expectations of tipping amounts, respondents overwhelmingly wrote in 15%, with some reporting 10% and a little less reporting 20% as what they felt are the expected tip amounts for food service
To summarize this research question, we asked about tipping amounts, use of tipped services before and during the pandemic shut-downs, if respondents are happier when tipping during the pandemic, if they tip for services other than just food service, and if they tip more in their favourite restaurant

Summary

Introduction

Gratuity or tipping in Canada is socially constructed and inherited from English and American practices in the food service industry. Service workers who are financially dependent on gratuities have been disproportionately affected by the widespread disruption in the food service industry (Blundell et al 2020; van Barneveld et al 2020; Gössling, Scott, and Hall 2021). The long-term impacts to their quality of life, rights as individuals, and sustainability of the food service business remains unknown (Hossain 2021; Chowdhury et al 2020). The purpose of this exploratory research is to understand Canadians’ perceptions of tipping in food service during the COVID-19 pandemic from the perspective of the patron. As of spring 2021, 25% of the food service jobs had not been filled to pre-pandemic levels and over 10,000 restaurants had permanently closed (Restaurants Canada, 2020)

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