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Florida Law Mandates Disclosure of Service Charges in Restaurants

Starting July 1, Florida restaurants must disclose mandatory fees and service charges before customers place their orders, according to a new law. This includes service charges, credit card surcharges, and delivery fees. The law aims to enhance transparency and trust between restaurants and diners.

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Ashley Chambers Eric Douglas Vicki Parmelee

A new law in Florida, effective July 1, requires restaurants to disclose mandatory fees and service charges before customers place their orders. This law expands existing requirements to cover various charges, including service charges, credit card surcharges, and delivery fees, excluding taxes.

Restaurants must clearly state the amount or percentage of these fees and their purpose on menus, websites, mobile ordering platforms, and written contracts. This information must also be included on customer bills.

Ashley Chambers, communications director at the Florida Restaurant & Lodging Association, expressed support for increased transparency around restaurant charges, suggesting it could enhance trust between restaurants and diners. Eric Douglas, a partner at BOL Hospitality Group, noted that transparency benefits both parties, stating, "Anything that's good for the customer is good for us."

Vicki Parmelee, owner of Jumby Bay Island Grill, emphasized the importance of clarity in pricing, stating that diners should not have to decipher their bills. However, she expressed concern that the new law might lead some diners to feel misled. Parmelee advocates for incorporating costs into menu prices rather than adding service charges.

The law does not prohibit restaurants from imposing mandatory service charges or automatic gratuities but requires clear disclosure of such charges prior to ordering.

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Automatic tip or service charge? New state law requires restaurants to tell diners before they order

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Florida Law Mandates Disclosure of Service Charges in Restaurants