The logic behind tipping in Toronto’s culinary scene is an area that David Neinstein struggles to comprehend.
Overseeing operations at Barque Smokehouse — a long-running barbeque joint on Roncesvalles — Neinstein is one of several restaurant owners in the city who doesn’t require customers to add a customary tip for servers and staff once their meal is finished.
He wanted to eliminate the gratuity option at his establishment for years, and after hiring a consultant and signing new contracts with staff in 2022, the switch was made when pandemic restrictions began to lift.
Neinstein argues that larger restaurant chains unfairly benefit from suppressed wages, and he doesn’t believe they’ll lobby the province to make significant changes to its tipping policies anytime soon.
“I don’t believe in [tipping culture], I think it’s wrong — morally and ethically,” he told TorontoToday. “It’s not a fair system for the staff, and I think it’s a mild form of tax evasion. The provincial government needs to legislate it out of existence.”
“This is also a career — and we treat it like a skilled profession like anything else,” he added. “Why would you tip a restaurant worker and not tip a psychoanalyst or your bus driver? It’s weird. We’re all skilled professionals that we [should] be paid at market value for.”
Depending on where you eat, tipping etiquette in the city varies. Most debit and credit machines prompt customers to select a tipping option between 15 and 25 per cent — although 18 per cent has become the frequent low-end standard in recent years, and some restaurants will offer a 30 per cent option.
But not everyone is satisfied with the tipping state-of-play.
An Angus Reid poll last year found that 59 per cent of Canadians would prefer a no-tipping model where restaurant staff are paid more — and that’s exactly what Barque Smokehouse is doing.
There, employees now earn between $22.25 and upwards of $30 per hour, depending on the worker’s skills and experience. They also receive benefits and certain time-off privileges that were previously unavailable, said Neinstein.
A recent report from the Ontario Living Wage Network found residents in the GTA need to earn $26 per hour to make ends meet.
Removing tipping does come at a cost, however. Barque Smokehouse raised its prices by 30 per cent after making the switch. The restaurant’s menu alerts customers that tips and labour costs are included in the price of their dining experience.
“The greatest surprise was how unaffected the guests were,” Neinstein said. “I expected far more backlash with comments like, ‘You’re taking away our control,’ or ‘Why are prices so high?’ Ultimately, people are okay. It’s been 99 per cent positive.”
Sarang Kitchen’s Korean fried chicken is also served tip-free
Over in Bloordale, Sarang Kitchen hasn’t expected their customers to tip since the business first opened in 2023.
The restaurant — which specializes in Korean fried chicken — primarily hires neurodivergent workers in an effort to bring down employment barriers while creating a sensory-friendly space for customers.
Sarang Kitchen owner Jennifer Low told TorontoToday her restaurant’s equity and inclusion values jive with its tip-free policy, and she’s been thrilled by her staff’s display of teamwork under the regime.
“The boss should be paying the employees — not the customers,” she said. “If you take out tipping, it promotes a team spirit. I find chefs don’t get the tips and it’s just the servers and bartenders, which creates that ‘me versus you.’ That’s not what we want in our team.”
Paying her staff between $23 and $26 per hour, Low factors in labour costs and ingredient costs when determining menu prices — but not tips, she said.
If customers insist on tipping at either Sarang Kitchen or Barque Smokehouse, the gratuity gets distributed evenly among all staff members.
Both restaurant owners said a consistent hourly wage is a huge draw for workers who aren’t comfortable with the unpredictable nature of tipping.
“Tips don’t often get reflected in your paystub, and the banks need to see your financial history,” Low said. “If you want a mortgage or a loan in the future and you show your paystub, that gives the bank a lot more confidence.”
“[Employees] don’t just need to work on the weekends to make a lot of money,” Neinstein added. “It attracts a certain type of person who wants to have regularity and the ability to predict income.”
But not all non-tipping restaurants stay in the game
Edulis, a Michelin Star eatery on Niagara Street known for its tasting menus, has changed its tipping policy over the years.
Previously Edulis billed itself as a no tipping restaurant, but in January 2024 announced it would begin adding a 20 per cent service charge on top of its tasting menu price. (Dinner is $200. Lunch is $100. Both must be pre-paid at the time of reservation.)
An FAQ page states that the service charge enables the restaurant to “provide a fair and stable wage to our team of outstanding hospitality professionals.” The owners of Edulis were not available for an interview.
Beast Pizza, located a few blocks away from Edulis on Tecumseth Street, also reversed its no tipping policy this year.
Citing Edulis as inspiration, Beast Pizza owner Nathan Middleton wrote in Maclean’s this spring that payroll taxes and soaring food prices made the model unsustainable.
“We didn’t have the support for it, nor is the restaurant industry designed for it — it’s been operating on tips for too long,” Middleton wrote.
His team figured staff would earn the same as they did under Beast Pizza’s living wage program as long as customers left a tip of at least 15 per cent. Since the change, most tips have been higher than that, according to Middleton, meaning staff now have higher wages.
“Things are looking good,” said the restaurateur.
