More people in the hospitality industry across B.C. are coming forward about tips disappearing from a third-party program that manages them.
Container Brewing in East Vancouver is the latest business looking for answers after tips vanished from their system.
“Their system user, not any of us, pulled out all the money… removed $3,100 and it hasn’t come back,” Dan Webster with Container Brewing said.
The brewery uses Everyday Payments, a company that manages tip collection and staff wages.
It is the same company that other businesses across B.C. have been using, which told Global News last week that they are also out thousands.
Everyday Payments is described as “delivering real-time employee payouts. Businesses using the service span hospitality, food service, beauty, wellness, and commission-based industries.
“Leveraging the AnyDay platform, the solution combines a powerful employer portal with a flexible mobile app and payment card for cardholders; simplifying fund management, improving visibility and control, and enabling faster, more predictable access to earnings.”
Get breaking National news
Eric Griffith, owner of Alta Bistro and Alpha Cafe in Whistler, told Global News that when he logged in to the system a few weeks ago, he knew something was wrong.
“We’re missing $4,550,” he said.
Like Griffith, Webster said the impact of the missing money is huge.
“The magnitude of the $3,000 shortfall for our business is essentially half our payroll,” he said.
The head of B.C.’s restaurant industry says things are now even more dire than originally thought two weeks ago.
“There’s 15,000 restaurants in B.C. — thousands of restaurants (affected), millions of dollars,” Ian Tostenson, president and CEO of the BC Restaurants and Foodservices Association, told Global News.
“I know three restaurant groups that total, already, $2.3 million in B.C. And that’s not the little ones like $5,000, $12,000 $8,000 so it’s really, really bad.”
Toronto-based XTM founded the payroll platform.
Its Q3 interim report shows an accumulated deficit of more than $71 million and material uncertainties that may cast doubt over the company’s ability to continue operating.
CEO Marilyn Schaffer told Global News that the deficit is not a measure of missing customer funds or a trust shortfall.
Global News sent Schaffer multiple emails asking what happened to the funds from the B.C. restaurants and when merchants can get their money back, but she did not respond.
The RCMP has confirmed that it is investigating, and the Bank of Canada also states that it is looking into the matter and has tools at its disposal to further promote the compliance of payment service providers.
For now, Webster said they are not comfortable putting money into their digital wallet until this is resolved.
I no longer tip at restaurants the service and food is often below par. When tipping was introduced staff were paid below minimum wage now they get that and still expect tips no other minimum wage employees get tips so why should waiting staff.
Life in Canada…
Pay too much for EVERYTHING
get paid too little for EVERYTHING
We are governed by incompetence going on 11 years now.
We need an exterminator
It must be one of Trump’s businesses based in Toronto