Quebec’s tipping bill gets mixed reaction from Montreal restaurants
Quebec tabled a bill on Thursday that would regulate how merchants determine suggested tips, forcing businesses to calculate them based on the price before tax.
Kkritika Suri
Julia Dougall-Picard springs into action as customers arrive for lunch at Frite Alors, a popular restaurant in Montreal's downtown Quartier Latin.
At 20 years old, she works as a server, frequently serving burgers and beers throughout the week. Like many in the industry, she earns a low hourly wage and relies heavily on tips to supplement her income. However, the way she earns tips is set to change.
On Thursday, Quebec introduced a bill aimed at regulating how businesses calculate suggested tips. Under the new legislation, tips would be based on the pre-tax amount of a bill, rather than the total after taxes. For example, on a $100 restaurant bill, tips would be calculated on the $100, not the $114.98 after tax.
Simon Jolin-Barrette, Quebec's minister responsible for consumer protection, said the legislation addresses the "growing pressure around tips," explaining that customers often end up paying more than intended. However, opinions among restaurant and bar workers in the province are split on how the new system will affect them.
Dougall-Picard supports the change. "I don’t really mind the change. Honestly, to me, it’s just a few dollars or cents and it doesn’t change much in my life. As a customer, I’d rather be paying tips on what I ordered, not on the taxes," she said.
Despite relying on tips for the bulk of her income, she believes the new system could actually encourage more generous tipping. "We really rely on tips because our salary is lower than minimum wage. I think if people don’t have to tip on top of the taxes, it might encourage them to tip more," she explained.
However, Jaskaran Singh, manager of Arriba Burrito, a nearby restaurant, is less enthusiastic. "It’s never been a law to tip a server. I’ve worked in a lot of restaurants, and it’s always been hard with our low minimum wage," Singh said. He noted that the restaurant frequently deals with customers, particularly tourists, who refuse to tip.
Further along the street, Marc-Antoine Bourdages, manager of Brasseurs du Monde, expressed a more neutral view. "I don’t mind it at all," he said, adding that he doubts most customers realize tips are currently calculated after tax. However, Bourdages acknowledged that his staff, who depend on tips, are unlikely to share his opinion. "My staff’s not going to be happy with that," he admitted.
Martin Vézina, vice-president of public affairs at the Quebec Restaurant Association, believes the change will reduce the earnings of dining room staff but won't significantly affect the restaurant industry as a whole. Although restaurants set the suggested tip percentages, Vézina explained that payment processing companies program the tip suggestions based on the after-tax total.
"It doesn’t cause much trouble for the industry," he said, noting that restaurant owners could potentially save on credit card fees and pay less income tax on declared tips. However, Vézina also sees the bill as a missed opportunity to address "no-show" reservations, which he says cost Quebec restaurants an average of $47,000 annually.
