Starting July 1, restaurants in Florida must disclose all mandatory fees and service charges to customers before placing orders. This change stems from updated state law specifications, broadening the existing guidelines beyond automatic gratuities to include a broader category of ‘operations charge.’ This category covers service charges, credit card surcharges, delivery fees, and other obligatory charges on a customer’s bill, excluding taxes.
Clear Disclosure Requirements
Restaurants imposing such fees must clearly list the amount or percentage of the added charge and its purpose on menus, websites, mobile platforms, and, when relevant, written contracts. Details must also appear on customers’ final bills.
The change ensures diners understand what they’ll pay in advance.
The Florida Restaurant & Lodging Association’s communications director, Ashley Chambers, expressed support for this transparency increase. The intention is to enhance trust and understanding between restaurants and patrons, ensuring clarity for both consumers and operators.
Benefits of Transparency
Eric Douglas, a partner at BOL Hospitality Group, echoed the benefits of transparency. His group plans an 18% service charge at one of its restaurants, directing proceeds to employees. Douglas emphasized that diners deserve clarification on how service charges are allocated, whether to staff or operational costs. Automatic gratuities often facilitate fair compensation for servers accommodating larger parties.
Not all establishments favor service charges. Vicki Parmelee, owner of Jumby Bay Island Grill, prefers embedding costs into menu prices rather than surfacing fees after dining.
Transparency is always much more appreciated.
Parmelee advocates upfront pricing, avoiding post-meal deciphering of additional fees and minimizing perceptions of potential misleading practices.
Concerns and Perspectives
Parmelee voiced concerns about the law potentially leading diners to suspect past deceptions. She supports menu prices reflecting actual food and drink costs, ranging from 28-35% of expenses, without relying on added charges to cover increasing costs.
Replacing traditional tipping with mandatory service charges is another worry. Parmelee sees tipping as voluntary and performance-related, not suited for a mandatory structure.
The new Florida law doesn’t prevent compulsory service charges but insists on pre-order transparency for those who implement them. Clear communication with customers is the primary objective.