British Columbians may be dishing out as much as $144 million this year for tips on taxes.
British Columbians are poised to spend record amounts of money on food and beverage services in the province, with an estimated $14 billion flowing from pockets to tables at restaurants, bars, clubs, cafes and catered venues.
Tostenson says this year's uptick is due to full restaurants and a nearly doubling of takeout orders. Whereas in 2019, takeout accounted for about 15 per cent of receipts, now they account for over 25 per cent. Some requests are "raising eyebrows," says Darren Dahl, an Innovate BC professor in the marketing and behavioural science division at the UBC Sauder School of Business.
It's unclear exactly how much British Columbians tip in one year, but some assumptions can be made to draw an estimate. Granted, most people would consider that a tip should only apply to service, but it raises the question of how difficult it would be to present customers with tipping options based on the subtotal.
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