Is it necessary to leave a tip, and how much?

In Calgary, as in all of Canada, tipping is not just a habit, but an important social norm that every newcomer needs to understand. Although technically not required by law, not tipping can be perceived as rude, and understanding the proper tipping culture will help you successfully integrate into Calgary society.

Standard tip amounts in Calgary

Full-service restaurants

The standard tip in Calgary restaurants is 15–20% of the bill before tax. Specific recommendations from Calgarians show a clear gradation:

  • 15% for average service
  • 18–20% for excellent service
  • 10% or less for poor service

A study by Square shows that the average tip in Alberta as of April 2022 is 17.5% of the bill, which is higher than the Canadian national average.

Bars and pubs

The rules are slightly different in Calgary bars:

  • $1–2 per drink when ordering directly at the bar
  • 15–20% of the total bill if you spend the entire evening at the bar

More prestigious bars expect higher tips, especially if the bartender is making complex cocktails.

Coffee shops and cafes

In coffee shops and cafes, tips are around 10% or rounding up to the nearest whole number. This is not always expected, but it is considered a nice gesture.

Current trends and issues

Increase in tip sizes

Average tips in Canada have increased from 16% in 2019 to 20% in 2023, reflecting a general trend toward higher tip expectations. This phenomenon has been dubbed “tip-flation.”

Automatic prompts on terminals

Payment terminals now offer pre-set tip options, which can start at 18% and go up to 30%. It is important to know that you have the right to choose your own amount or use the “custom amount” option.

Research shows that 94% of Canadians believe that the tipping culture has gotten out of hand, and 90% feel that tips are too high. Canadians believe that a fair tip should average 9%:

  • Restaurant servers: 13%
  • Bartenders: 10%
  • Food delivery drivers: 9%

Reaction in Calgary

Many Calgarians reduce their tips if the terminal offers excessive options. For example, if the minimum suggested tip is 18% or more, many people only give 15%.

Where tips are not expected

Fast food establishments

Tips are not expected at fast food establishments. This includes:

  • McDonald's, Tim Hortons, Subway
  • Starbucks-type coffee shops (although terminals may offer tips)
  • Grocery stores with prepared food

Self-service

If you are standing to order your food, you should not leave a tip. This rule applies to:

  • Self-service checkouts
  • Takeaway orders with no additional service
  • Kiosks and vending machines

Legal regulation of tipping in Alberta

Current state of legislation

There are no laws in Alberta that protect workers' tips. This means that:

  • Owners can keep all tips without legal consequences
  • Workers have no legal protection against “tip theft”
  • Some establishments in Calgary effectively withhold tips from workers

Bill 210

In December 2024, Bill 210 was introduced in the Alberta legislature with the following objectives:

  • Prohibit employers from withholding employee tips

  • Allow voluntary pooling of tips among employees

  • Ensure that all tips go to employees without deductions

Six Canadian provinces already have similar legislation, and Alberta could become the seventh.

Tipping scandals in Calgary

A Reddit user survey identified several problematic establishments in Calgary:

  • Chattime in McKenzie Town: employees do not receive tips from owners
  • Cactus Club: 7% of total sales goes into a shared tip pool, but includes managers
  • “Don't Yell At Me”: owner deducts losses from employees' tips

Minimum wage and tips

Current rates in Alberta

The minimum wage in Alberta is $15 per hour as of October 2018, which is the lowest in Canada along with Saskatchewan. For comparison:

  • Federal minimum wage: $17.75 as of April 2025

  • British Columbia: $17.85

  • Ontario: $17.20

Impact on the tipping culture

The low minimum wage in Alberta puts additional pressure on the tipping culture. A Calgary Living Wage study found that the living wage in Calgary is $24.45 per hour, which is almost double the minimum wage.

  • 68% of Canadians believe that service workers need tips to survive
  • 69% think that tips would not be necessary if wages were higher

New models without tips

Pioneers in Calgary

In August 2024, the Heliopolis Social Café opened in Calgary with a “no tip” policy. The establishment:

  • Pays employees above minimum wage
  • Provides full health benefits
  • Includes all costs in menu prices

Prairie Dog Brewing has also introduced a “no tip” system, where:

  • Guests are not required to leave a tip
  • All tips are distributed evenly among employees
  • Salaries are tied to individual performance

Earls' failed experiment

In 2016, Earls on Stephen Avenue introduced a mandatory 16% charge in lieu of tips, but the experiment ended in February 2017 due to mixed customer reactions.

Technical aspects of tipping

Electronic tips

Electronic tips that go through an employer's banking system are considered “reportable” and are subject to CPP and EI deductions. This is important for employees because it affects their pension and insurance contributions.

Tax-based calculation

In most Canadian provinces, tips are calculated on the amount including tax, but Quebec became the first province to ban this in November 2024. The legislation will come into effect in May 2025.

Practical tips for visitors

When to tip

Be sure to tip at:

  • Restaurants with waiters
  • Bars with bartenders
  • Food delivery services
  • Taxis and Uber/Lyft
  • Hair salons and beauty salons

When not to tip

Do not leave tips at:

  • Fast food restaurants
  • Grocery stores
  • Gas stations
  • Pharmacies
  • Clothing stores

Ways to pay tips

Cash tips are still the best way to tip, as employees receive them directly. Electronic tips may not reach the employee, especially in establishments that do not adhere to ethical standards.

Impact on businesses and consumers

Delivery issues

Some Calgary restaurants are facing delivery issues due to low tips. Couriers are refusing to take orders without a pre-set tip, forcing restaurants to rework food.

Switching to in-house delivery

The Bona Roma restaurant in Calgary has introduced free in-house delivery instead of using Skip the Dishes or Uber Eats to avoid tipping issues and high commissions (25% per order).

Economic pressure

Restaurateurs have to balance between:

  • Raising prices to cover wages
  • Remaining competitive
  • Dependence on tips for employee income

The future of tipping culture

Global trends

Experts predict that tipping could be abolished globally within the next 5–10 years. 59% of Canadians would prefer an “all-inclusive” model with higher wages instead of tips.

Regional specifics

In large cities such as Calgary, tipping expectations are often higher, especially in upscale establishments, where 18–20% may be considered the norm.

Understanding Calgary's tipping culture is an important part of successfully adapting to the Canadian way of life. While the system may seem complicated, sticking to the standard 15–20% in restaurants and using common sense in other situations will help you navigate this social norm. The most important thing to remember is that tips should reflect the quality of service and your ability to leave them, not social pressure.