Ford’s Garage is reviewing a policy that adds an automatic 20% service charge to checks at five Florida restaurants. The chain’s president, Billy Downs, said some customers have objected to the fee and the company may consider changing the program.
“I think we need to listen to the consumer,” Downs said, adding that the chain could encourage a change.
The policy is being tested by franchisee 23 Restaurant Services, which operates Ford’s Garage locations across Florida. Its president, Marc Brown, said the model has raised employees’ average hourly pay without driving away most diners.
Under the system, the restaurant adds a 20% service charge instead of relying on traditional tipping. Servers and bartenders receive commissions based on sales, while the model is also intended to provide more equitable pay for kitchen and support staff. Customers can still leave an additional tip, but it is optional.
Downs said the trial was meant to see whether a different pay structure could help manage costs for customers while rewarding employees.
The Ford’s Garage in Plantation, near Fort Lauderdale, uses the charge in place of a traditional gratuity. It also adds a separate 1% entertainment fee, which the restaurant says goes directly to the shopping center and is not kept by the restaurant or paid to staff.
Brown said customers are told about the service charge verbally and in writing before ordering, so they can decide whether to eat there. He compared it to listing higher menu prices, and said many guests accept the fee because they enjoy the restaurant’s experience.
Downs acknowledged that reactions have been mixed. Some customers, he said, simply do not want to pay a mandatory service charge. He added that he understands the concern and might feel the same way in some circumstances.
The test comes as restaurants face rising labor costs and changes to minimum wages for tipped workers. Brown said the objections appear to come from a relatively small share of diners. He also noted that most participating locations have recorded year-over-year growth after using the model for several years.
Brown said the charge does not remove employees’ motivation to provide good hospitality. Staff are expected to serve every guest well, regardless of whether they anticipate an extra tip.
Ford’s Garage opened in Fort Myers in 2012 and now has 36 restaurants in nine states. Downs said the chain has focused on keeping meals affordable, with an average check of about $26 and weekday value meals starting at $10.99.
Downs said consistently good service can help ease customer concerns. Brown said the franchisee continues to discuss the policy, but has not made a decision about whether to change it.
