World News

CANADA: ‘It’s the right thing to do’ — Toronto restaurant scraps tipping

As more workers in the restaurant industry return to work, one Toronto restaurant is taking the opportunity to make a big change by moving away from the tip system.

Richmond Station, located at Yonge and Richmond Street in downtown Toronto, moved to what it calls a “hospitality included” model, meaning any gratuities for staff are already built into the price.

“Eliminating tips and moving to Hospitality Included is … the right thing to do,” Ryan Donovan, the restaurant’s owner, told Global News by email.

“We want our staff to have the same entitlements to the social safety net and their professional peers in other industries and the fall-out from the pandemic has made that abundantly clear.”

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Prices have been raised by an average of 18 per cent, Donovan explained, with all additional revenue directed to employee compensation.

“We will bear the cost of additional tax commitments as we distribute additional payroll dollars — our matching of (Canadian Pension Plan) and (Employment Insurance), our commitments for Vacation Pay and WSIB premiums,” he wrote.

— Global news