Starting July 1, restaurant-goers in Florida can expect greater clarity on their dining bills. A new state law mandates that eateries transparently disclose any mandatory fees or service charges before customers place their order.
This law broadens previous rules that only applied to automatic tips. It now encompasses a wider range of charges termed as ‘operations charges,’ which include service charges, credit card surcharges, and delivery fees, with taxes being the only exception.
Restaurants applying these charges must declare the charge’s amount or percentage and its purpose across menus, websites, mobile ordering platforms, and, if relevant, within written contracts. This information must also be included on customer bills, ensuring transparency.
“Today’s dining landscape involves rising costs and changing customer expectations, especially regarding tipping and service charges,” said Ashley Chambers, communications director at the Florida Restaurant & Lodging Association.
Eric Douglas, of BOL Hospitality Group, supports complete transparency, stating it’s beneficial for both diners and establishments. He plans to apply an 18% service charge at one of his restaurants, directing all proceeds to staff, emphasizing transparency in fee allocation.
Vicki Parmelee, owner of Jumby Bay Island Grill, prefers embedding costs within menu prices instead of adding post-meal fees. She believes diners should understand their total cost upfront, avoiding surprises.
Parmelee also raised concerns that the new law might mislead some customers into thinking they were previously overcharged.
The legislation doesn’t ban service charges, but obligates restaurants to disclose them clearly beforehand, maintaining trust and clarity.
Peter Burke, a lifestyle editor with Fox News Digital, focuses on food and drink and has covered this topic.