New Law Mandates Clear Disclosure of Restaurant Fees in Florida

A new Florida law effective July 1 mandates restaurants to disclose all mandatory fees and service charges to diners before they order. This includes charges like service fees, credit card surcharges, and delivery fees. Taxes are the only exclusions.

Expanded Requirements

Previously, the law focused on automatic tips. Now, it includes a broader ‘operations charge’ category. Restaurants must specify the amount or percentage of these fees and explain their purpose on menus, websites, mobile apps, or written contracts. This information must also appear on customer bills.

“Restaurants today face rising costs and shifting customer expectations, particularly around tipping,” Ashley Chambers from the Florida Restaurant & Lodging Association said. “We support transparency to enhance trust between restaurants and guests.”

Impact on Restaurant Practices

Eric Douglas of BOL Hospitality Group supports the law. “Anything that’s good for the customer is good for us,” he stated. His restaurants plan an 18% service charge with proceeds going to employees. He emphasized full disclosure if service charges fund operational costs.

Douglas noted that automatic gratuities help fairly compensate servers for large parties. However, not all restaurants use service charges. Some, like Jumby Bay Island Grill in Jupiter, build costs into menu prices.

“A diner shouldn’t have to decipher the bill with extra fees,” owner Vicki Parmelee said. “Transparency is greatly appreciated.”

Parmelee voices concern that the new law may lead diners to think they’ve been misled. She suggests adjusting menu prices to reflect true costs instead of adding charges.

“If expenses rise, menu prices should accurately reflect food and beverage costs without added fees,” Parmelee added. “It’s an honest approach for pricing.”

While some replace tipping with service charges, Parmelee opposes the idea. “Tipping should be voluntary and earned,” she concluded.

The law doesn’t ban service charges or automatic tips. It requires clear disclosure for restaurants that use them before customers order.