'Psychological safety for our staff': Kitchener business not accepting tips as feelings towards the practice are changing

Odd Duck Wine and Provisions in downtown Kitchener is not accepting tips from customers, instead management is paying the staff of ten above the regional living wage rate set at $19.95 an hour by the Ontario Living Wage Network.

“The biggest thing it comes down to is psychological safety for our staff,” Jon Rennie, the culinary director at Odd Duck Wine & Provisions said.

Staff getting ready for opening day at Odd Duck Wine & Provisions. June 22, 2023. (Colton Wiens/CTV News)

“We basically make up the difference to pay people by increasing the prices a little bit and better sourcing,” Rennie said.

The wage approach does result in some higher prices for their items. But the restaurant believes customers will be willing to pay a higher price for peace of mind.

“Knowing that being on a set wage where you're actually making a thriving wage in the service industry is just a really rare opportunity to come by, and it's really nice to actually experience it,” Emma Osmond, the bar manager at Odd Duck Wine & Provisions said.

According to industry watchers, restaurants have been encouraging higher tips. As a result, the no-tipping model may become more popular as a response to so-called tipflation.

Jon Rennie preparing food at Odd Duck Wine & Provisions. June 22, 2023. Colton Wiens/CTV News)

“We often sort of do mental accounting, where we separate the tip from the bill, but in the end, what we pay to go out will be approximately the same,” Mike Von Massow, an associate professor with the University of Guelph’s Department of Food, Agricultural and Resource Economics said.

It is an approach that Canadians are starting to get behind.

An Angus Reid poll from February found 59 per cent of respondents support the model.

People in the Region of Waterloo said it seems like a good idea.

“The issue with a tipping scale is its inconsistent right?” Phi Doan told CTV News.

“I think it's degrading that people have to wait on my generosity or how I feel at the moment to decide whether or not to get paid,” Jack Horman said.

“I like this approach, but I will probably tip at the restaurant as well because otherwise, I would feel uncomfortable,” Katerina Rossolovich said.

“That's a better idea. I guess the prices would be a bit higher, but that's what they do in Europe in a lot of places,” Bill Knaud said.

The amounts people spend vary too. The survey found 23 per cent of Canadians tip less than 15 per cent.

A section of the menu at Odd Duck Wine & Provisions. June 22, 2023. Colton Wiens/CTV News)

One-in-five Canadians tip 20 per cent or more.

Younger people in the Region seemed to spend a little less than their older counterparts.

“I’m currently unemployed, so I have to have some reservations, but bare minimum ten percent,” Doan, 29, said.

“15,20 [percent], depends how I’m feeling at the moment,” Horman, who was born in 1940, said.

“Usually, I go with the smallest percentage that I see on the screen, and if I really like it, then I go for the middle one,” Rossolovich, who is a millennial, said.

“I try to keep at about 15 percent,” Knaud, 75, said.

A US survey from Bankrate this month found age can also be a factor in choosing whether to tip at all.

According to the poll, 83 per cent of baby boomers leave a tip at sit-down restaurants, compared to 35 per cent of Gen Z-ers.

“That might just be as much about income as it is about generational things,” Von Massow said.