Florida Enacts Law Requiring Upfront Disclosure of Restaurant Fees Before Ordering

Effective July 1, individuals dining out across Florida can anticipate fewer unexpected additions to their restaurant bills. A recently enacted state statute now mandates that dining establishments explicitly reveal all compulsory fees and service charges to patrons before they even submit their food and drink selections.

New Disclosure Requirements for Diners

This updated legislation broadens previous requirements, moving beyond just automatic gratuities to encompass a wider array of "operations charges." This expanded category includes various fees such as service charges, credit card surcharges, delivery fees, and any other mandatory charges applied to a customer's total, with the exception of sales tax.

Restaurants implementing these charges are now required to display the specific amount or percentage of the fee and clearly state its purpose on their menus, digital platforms for ordering (including websites and mobile apps), and, where applicable, within written contracts. Furthermore, this information must also be itemized on customers' final bills, as detailed by the new provisions.

The primary objective of this legislative change is to provide diners with a more comprehensive understanding of their total expenditure in advance of their meal.

We support increasing transparency around restaurant charges, and we believe it can enhance trust and understanding between restaurants and their guests — provided it is implemented in a way that is clear for consumers and practical for operators.

Industry Perspectives on Transparency

Eric Douglas, a partner at BOL Hospitality Group, which manages several dining venues in South Florida, highlighted the mutual benefits of such transparency for both restaurants and their clientele.

Anything that's good for the customer is good for us. We're in the customer service business at the end of the day. We want to make sure there's transparency with any charges that we might have.

Douglas indicated that his group intends to introduce an 18% service charge at one of its establishments, confirming that all revenue from this charge will go directly to employees. He stressed the importance of restaurants being equally forthcoming if any part of a service charge is allocated to operational expenses rather than staff compensation.

If I'm going to be charged a service charge, and it's not going to be used 100% toward the staff, I think I deserve to know where it's going.

He also noted that automatic gratuities serve a practical function for larger dining parties, helping to ensure that servers are adequately compensated for the increased coordination and dedicated service these tables typically demand.

Varying Approaches to Pricing

Not all restaurant businesses rely on the imposition of service charges.

Vicki Parmelee, who owns Jumby Bay Island Grill in Jupiter, shared that her restaurant has consistently chosen to incorporate costs directly into menu prices rather than adding supplementary fees at the conclusion of a meal.

We have always been straightforward with our guests at Jumby Bay Island Grill in regard to what they are paying for. A diner should not have to decipher the bill at the end of the meal with extra fees. Transparency is always much more appreciated.

While supporting the principle of honesty with customers, Parmelee expressed apprehension that the new law might inadvertently lead some diners to question whether restaurants had previously been deceptive.

I think this new law will unfortunately confuse diners, as they now may assume they have been being 'duped' in some way when they dine out.

Parmelee suggested that rather than introducing service charges to offset rising operational expenditures, restaurants should simply adjust their menu item prices accordingly.

If expenses have increased for the restaurant, the menu prices should accurately reflect 28–35% food and beverage cost, not an added service charge. It's an honest way to present pricing to our customers and still make a marginal profit.

She recounted experiences with restaurants that have substituted traditional voluntary tipping with mandatory service charges, a practice she believes frequently causes confusion for both patrons and staff members.

I would never adopt this fee structure. Tipping is voluntary and earned by the staff.

It is important to note that the new Florida legislation does not forbid restaurants from levying mandatory service charges or automatic gratuities. Instead, its core purpose is to compel establishments that opt to implement such charges to clearly disclose them before customers place their orders.