Ford's Garage weighs dropping 20% service fee after Florida backlash

Key points

• Billy Downs, president of Ford's Garage, stated the company is reviewing a 20% service charge policy tested at five Florida locations and may encourage a change.
• The policy is run by franchisee 23 Restaurant Services, which replaced traditional tipping with a mandatory fee to support a commission-based compensation structure for servers and support staff.
• Marc Brown, president of 23 Restaurant Services, argued the model has been successful, resulting in higher average hourly pay for employees and year-over-year business growth.
• Downs acknowledged that while some customers dislike the mandatory fee, others appreciate the experience, and the chain has not yet made a final decision on the policy.
• The service charge is disclosed to customers before ordering, and additional tips remain optional under the current model.

Background

This development follows broader industry discussions regarding restaurant labor costs and tipping norms. Ford's Garage, founded in 2012 in Fort Myers, operates 36 restaurants across nine states and emphasizes affordability with average checks around $26. The current policy test is part of a team service model designed to provide more equitable compensation for kitchen and support staff, moving away from the traditional gratuity system.

Why it matters

The potential reversal of the service charge highlights the tension between restaurant operators seeking to control labor costs and consumers resisting mandatory fees. It underscores the ongoing debate over tipping culture and the viability of alternative compensation models in the hospitality industry.

What to watch

Ford's Garage and 23 Restaurant Services will continue discussions regarding the service charge policy. No final decision has been made, but the chain is monitoring consumer feedback and may adjust the program in the future.