Hospitality Workers Reported Declining Tips Across Canada

A new industry report highlights a widespread decrease in gratuities for staff relying on tips for essential living costs.

Updated on Oct. 14, 2026 in Hospitality

Hospitality Workers Reported Declining Tips Across Canada

Live Poll

Do rising costs of living make it difficult for you to maintain previous restaurant tipping habits?

The State of Tipping in Canada 2026 Report found that 67 per cent of surveyed hospitality workers have seen a decline in tips over the past two years. Many employees in British Columbia and Atlantic Canada rely on these gratuities to cover basic expenses like rent and groceries.

Why it matters

The findings underscore significant financial pressure on service workers as restaurant operators grapple with rising food costs and tariffs. With 41 per cent of operators currently breaking even or operating at a loss, the sector faces mounting economic instability.

The report surveyed 506 hospitality workers, with 72 per cent of those in Ontario reporting a decline in tips. Meanwhile, 41 per cent of restaurant operators report they are currently operating at a loss or breaking even.

The players

Actual

This is a hospitality technology platform that commissioned the State of Tipping in Canada 2026 Report.

Angus Reid

This is a market research firm that conducted the survey on behalf of the hospitality technology platform Actual.

Restaurants Canada

This is an industry association that advocates for hospitality sector policy changes, including tax breaks on restaurant meals.

The details

Commissioned by the technology platform Actual and conducted by Angus Reid, the survey highlights a disconnect between customer tipping habits and worker financial needs. Only 15 per cent of workers believe customers fully grasp the impact that reduced tipping has on their ability to pay for essentials.

1991: The GST was introduced and foodservice sales dropped by 11 per cent.
2019: Restaurant spending levels were higher than they are today.
March 2026: 36 per cent of operators were breaking even.
July 2026: Restaurants Canada released a quarterly profitability report.
October 12, 2026: The State of Tipping in Canada 2026 Report was released.

Market Landscape

The current downturn in restaurant spending draws historical parallels to the 1991 GST introduction, which resulted in an 11 per cent drop in foodservice sales and the loss of 46,000 jobs. This trend highlights the sensitivity of the sector to shifts in consumer spending and tax policy.

Customers may notice changes in service as operators struggle with the viability of their business models. Reduced tips directly impact the cost-of-living stability for service staff who rely on these gratuities for essential monthly expenses.

The takeaway

Staff retention in the hospitality sector is increasingly tied to the consistency of tip income, with 71 per cent of workers in Atlantic Canada citing this as a key factor. Consumers should be aware that gratuities serve as a primary source of income for these employees when budgeting for dining out.