A new report found that the B.C. hospitality industry is facing a tipping decline, particularly for those who rely on tips to cover their most important expenses.
A new report from Actual, which is a tip management and hospitality financial operations company, suggests that B.C. workers are the most reliant in the country on tips for their essential expenses, like rent. It makes sense that it is impacting B.C. tip workers more than in other provinces, due to B.C. having the highest housing costs in the country.
Angus Reid conducted a survey on behalf of Actual to find out what issues are most pressing for hospitality workers.
Actual calls B.C. Canada’s “tipping paradox,” in that fewer workers receive tips, but those who do rely on them the most.
Breaking down the numbers, Actual found that 4 in 10 B.C. hospitality workers receive tips, which is the lowest proportion in Canada, and below the national average of 49 per cent.
It’s important to note that, outside of Nunavut, B.C. has the highest general minimum wage in the country ($18.25 per hour as of June 1, 2026).
It’s also worth noting that we have heard from many small business and restaurant owners who have opposed B.C.’s minimum wage increases for the strain they put on businesses.
Actual compiled the data after hearing from people actually working in the hospitality sector. One of the key findings was that 12 per cent of B.C. workers say that tips account for over 40 per cent of their income.
Only 15 per cent of hospitality workers “believe customers understand the financial impact of not tipping,” Actual notes.
The report also states that “41 per cent say customers understand little or nothing about it at all.”
“Closing that gap matters for workers, for operators, and for the broader conversation about the future of tipping in Canada.”
Actual suggests that there is a lot that people don’t see in the restaurant business, noting that restaurants are not a high-margin business, with the national average below a five per cent profit margin.
“On margins this thin, operators cannot simply raise wages without raising menu prices to match, and higher menu prices come with their own risk of pushing customers away,” Actual says.
The way tips are paid out makes an impact, as workers say that if they had faster access to their tips, it would “meaningfully improve” their finances. It’s not just the frontline workers, but managers and owners who also want faster payouts.
“Part of the delay comes down to how tips actually move today. Most customers pay by credit card, which means the tip doesn’t land in a worker’s hands the moment it’s earned. It first has to be collected, divided among staff according to the shift’s tip pooling structure, and paid out, and each of those steps takes time,” Actual says.
Actual also notes that tips are a major factor in keeping most workers in the hospitality industry. A full 61 per cent of tipped workers said that tip income has influenced their decision to stay in their role. For frontline and server roles, that number jumps to 74 per cent.
The top ask for tipped workers is a demand for increased transparency around tips.
You can read the full report on the Actual website.