Restaurant chain may rethink controversial 20% service charge in some venues after customer pushback
Ford's Garage may be reconsidering a controversial policy that automatically adds a 20% service charge to customers' checks at select Florida restaurants, with the chain's president acknowledging that some diners are unhappy with the mandatory fee.
Key points
- "Our servers in the locations that run our service charge program are making significantly higher average hourly pay than our servers and bartenders in locations that do not have it," Brown said.
- "There's been some big wins, and there's been consumers that just do not want to pay a service charge," he said.
- "But the biggest pushback is people don't want to have a mandated service charge, and I get it," Downs said.
APPLEBEE'S CUSTOMER PUSHES BACK ON SUGGESTED TIP AFTER CHECKING THE MATH Brown said the service charge is disclosed to customers multiple times verbally and in writing before they order, giving them the choice of whether to dine there.
Additional details
- Rather than relying on traditional tipping, the model automatically adds a 20% service charge to each check to support a commission-based compensation structure.
- The policy is part of a team service model introduced by 23 Restaurant Services, which operates Ford's Garage restaurants throughout Florida.
- Downs said the chain has prioritized affordability, with an average customer check of about $26 and weekday value meals starting at $10.99.
- Most guests aren't bothered by the fee, Brown said, "because they like the Ford's Garage experience." But Downs acknowledged the policy has produced some controversy.
- Downs said the experiment was intended to explore whether a different compensation model could help control costs while rewarding employees for their service.
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