Florida restaurants will be required to clearly disclose all mandatory fees and service charges to customers before they place their orders under a new state law taking effect July 1, 2026. The legislation aims to increase transparency and provide diners with a clearer understanding of their total costs.
The updated law expands existing requirements to cover a broader range of fees beyond just automatic tips. This includes service charges, credit card surcharges, delivery fees, and other mandatory charges, excluding standard taxes, that are added to a customer's bill. Restaurants must display the amount or percentage of these fees and explain their purpose on menus, websites, mobile ordering platforms, and in written contracts when applicable. This information must also appear on customer bills.
Ashley Chambers, communications director at the Florida Restaurant & Lodging Association, stated that the organization supports increasing transparency, believing it can enhance trust between restaurants and guests, provided the implementation is clear for consumers and practical for operators. "Restaurants today are navigating rising costs and evolving customer expectations, particularly around tipping and service charges," Chambers told Fox News Digital.
Eric Douglas, a partner with BOL Hospitality Group, echoed the sentiment, saying transparency benefits both businesses and patrons. He noted that his group plans to implement an 18% service charge at one of its restaurants, with all proceeds going directly to employees. Douglas believes it is important for restaurants to be equally clear if any portion of a service charge is used for operational expenses, stating, "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."
Douglas also pointed out the practical purpose of automatic gratuities for larger parties, ensuring servers are fairly compensated for the additional attention and service required for such tables.
However, not all restaurant owners favor this approach. Vicki Parmelee, owner of Jumby Bay Island Grill in Jupiter, said her restaurant has historically built all costs into menu prices rather than adding separate fees. "We have always been straightforward with our guests at Jumby Bay Island Grill in regard to what they are paying for," Parmelee said. "A diner should not have to decipher the bill at the end of the meal with extra fees. Transparency is always much more appreciated."
Parmelee expressed concern that the new law might unintentionally confuse diners, leading them to believe they have been previously misled. She suggested that restaurants facing increased expenses should adjust menu prices accordingly rather than implementing service charges. "If expenses have increased for the restaurant, the menu prices should accurately reflect 28–35% food and beverage cost, not an added service charge," she stated. "It's an honest way to present pricing to our customers and still make a marginal profit."
Parmelee has observed some restaurants replacing traditional tipping with mandatory service charges, a practice she believes creates confusion for both diners and employees, adding, "Tipping is voluntary and earned by the staff."
The new Florida law does not prohibit restaurants from adding mandatory service charges or automatic gratuities. It specifically mandates that any restaurant choosing to impose such charges must clearly disclose them prior to a customer placing an order.