Toronto friends come up with new way to fix 'absurd' tipping culture

If there's one thing Toronto residents seem to agree on these days, it's that tipping culture has gotten out of control. Luckily, one local startup thinks it may have found a way to make the experience a little less awkward.

Back in the early 2000s, tipping was generally seen as a way to reward exceptional service, and 10 per cent was considered a perfectly acceptable amount. Nowadays, however, tipping prompts have skyrocketed to twice as much, and in some cases, 25 per cent or more.

Even where we're expected to tip has changed. Coffee shops, fast-food counters and dispensaries in Toronto are now asking customers to kick in a little extra before they tap their card and move on with their day. 

Funny enough, that question is exactly what led to the creation of TipWise.

Speaking to blogTO, co-founder Muaad Mehad says the idea for the platform came after a rant he posted to the r/mildlyinfuriating subreddit about tipping culture gained traction online. It quickly snowballed with thousands of people sharing their own frustrations about aggressively high prompts.

"We came up with a system similar to a self-checkout at a grocery store, where you can grab a seat at a table, you can order your food, pay for it on your phone, and then we send you a tip prompt 15 minutes later."

TipWise is described as a web app platform where diners tap the Near Field Communication (NFC) nameplate at their table or scan the QR code, which opens to a page on their browser where they can then order, pay and then time on their own time without an audience.

The screen diners see on the TipWise app during checkout.

This, Mehad says, is designed to eliminate what he calls "guilt tipping."

"When you go to a restaurant, there's a screen angled at you, you have servers watching, [there are] people behind you waiting, and you feel kind of forced to tip," he says, which, undoubtedly, can be a major source of anxiety for diners with people-pleasing tendencies.

The issue is one that Mehad understands from both sides. Before moving into the tech world, he spent years working in the restaurant industry and says he witnessed firsthand how awkward the tipping process can be for customers and staff alike. In some Toronto establishments he's visited, Mehad says he's seen prompts asking for 30 per cent.

"We're already paying heavy taxes, we're potentially in a recession in Toronto, the average Canadian is earning about $3,500 a month after taxes, and for them to go ahead and tip 30 per cent can be difficult," he says.

And he's not alone in feeling that way. A survey by Talker Research of 2,000 Americans found that the average person spends almost $500 more on tipping each year than they'd like to. While there aren't comparable studies in Canada, it's fair to assume Canadians are feeling similar pressure.

According to a 2025 study by H&R Block, nearly 60 percent of Canadians say they're tipping more than they were just one year ago, despite ongoing concerns about affordability and the rising cost of living.

Mehad argues the issue is especially noticeable in quick-service restaurants. "A lot of times, you go to quick-service restaurants, and we tip before we receive the food. We don't know how long it takes, how the quality is, or anything of that nature." So, he asks, why tip on something you haven't received yet? 

TipWise has only been around for three weeks and is currently in beta testing, but the tiny startup of just seven employees says two GTA restaurants — Scarborough's Craves Bites & Cafe and LaRosh — have already signed on, with a third location currently in the works. So far, the founders say they've booked meetings with roughly 20 establishments interested in integrating with the platform.

Still, he knows the concept won't appeal to everyone.

"We know this product isn't for everybody," he says. "There's a lot of older folks that might not use it, and a lot of younger people who might not see it as the best fit, but we're targeting millennials that really value their time and the experience."

And, as he puts it, their hard-earned money, too.