New minimum wage and tipping policies….

by | Jul 21, 2017 | 0 comments

Will you be changing your tipping policies when the new minimum wage kicks in?

This is a question I posed to a few people and on a few boards and the outcome was as I hoped. Most people said no. They will not be changing anything and most of those people said they tip between 15-20% on average.

We do have to remember that when the minimum wage in Ontario increases to $15.00/hour, for waitresses/waiters they will not see that hourly wage. The breakdown of the hourly wages for liquor servers would see an increase from $9.90 per hour to:

$10.10 per hour on October 1, 2017
$12.20 per hour on January 1, 2018
$13.05 per hour on January 1, 2019

So basically $2.00 less because it is assumed by government, that tips will make up the difference and then some. Which is basically true, but then comes the chicken and egg type dilemma. Would tipping be so depended upon and would it have become such a norm if servers were paid the same as everyone else? That is a question for another post, however.

Some interesting comments that did come out of these topics were the concerns of raised prices on menu items that would make tipping amount actually higher even if tipping within the normal standards. Basically, if you tipped 20% on a meal that was $100 before and it is now $130, your 20% tip equals is now $26 instead of $20 and your meal is now $36.00 more in total. That is a much bigger increase for the same meal and same service you got a week ago. It is an interesting point and something to think about moving forward.

However, to counter that, many people in the actual restaurant industry have stated that they don’t see food or drink prices going up that much. Meaning there would not be as high as a $30 increase on the same meal. And $6.00 would not be the addition of the tip, it would be lower. But let’s be real, is $6.00 really a make or break if you are going out for a nice sit-down meal with friend or family??

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