Updated
Updated · Fox News · Nov 14
Ford's Garage May Rework 20% Service Charge at 5 Florida Sites as Diners Push Back
Updated
Updated · Fox News · Nov 14

Ford's Garage May Rework 20% Service Charge at 5 Florida Sites as Diners Push Back

1 articles · Updated · Fox News · Nov 14

Summary

  • Five Florida Ford's Garage locations are testing a 20% automatic service charge in place of traditional tipping, and chain president Billy Downs said the company may encourage changes after customer complaints.
  • The franchisee says the model has lifted hourly pay for servers and bartenders and spreads compensation more evenly to kitchen and support staff through a commission-based system.
  • Downs said the biggest objection is the mandatory nature of the fee, even though the restaurants disclose it before ordering; additional tips remain optional.
  • 23 Restaurant Services, which runs the Florida stores, says most guests accept the charge and that participating restaurants have posted year-over-year growth after multiple years under the model.
  • The review comes as restaurants face rising labor costs and tipped-wage changes, while Ford's Garage tries to keep its average check near $26 and weekday meals starting at $10.99.

Insights

Could a mandatory 20% restaurant fee actually leave your favorite servers making less money?
If tipping dies out, are diners ready for the sticker shock of menus reflecting true labor costs?
Why might hiding a price hike in a service charge trigger a tax nightmare for restaurants?