A Florida Burger Chain's 20% Service Charge Meets Diner Pushback, and May Be on Its Way Out

A Florida restaurant experiment that replaced tipping with a mandatory 20% service charge may be headed for a rewrite after diners made clear they did not like it.

A franchisee of Ford's Garage, the car-themed burger chain, has been testing an automatic 20% charge at five Florida locations in place of traditional tipping, Fox News reported ^[1]. The franchise group, 23 Restaurant Services, uses the money to support commission-based pay for servers, bartenders and kitchen staff, and leaves any additional tip optional, according to Fox News ^[1].

Customers pushed back. The chain's president told Fox News that "people don't want to have a mandated service charge," and said he understood why ^[1]. He said the company may encourage a change to the program ^[1]. Corporate leadership and the franchise group are still discussing adjustments, and no final decision has been made, Fox News reported ^[1].

The Franchisee's Case

The franchise group defends the model. Marc Brown, president of 23 Restaurant Services, said the charge is disclosed to customers several times, out loud and in writing, before they order, and argued that most guests are not bothered by it, Fox News reported ^[1]. Brown said servers at the locations running the program earn significantly higher average hourly pay than servers elsewhere ^[1]. The franchisee also said the service-charge model has driven year-over-year growth despite the complaints, the New York Post reported ^[2].

That is a fair argument, and paying kitchen staff and servers well is a worthy goal. Restaurant work is hard, and the people who do it deserve a good living.

Why Diners Bristled

The trouble is how it feels from the other side of the table. One of the most common complaints, according to Fox News, came from diners in online reviews who said they were asked for an additional tip on top of the automatic 20% ^[1]. Being charged for service and then asked to pay for it again is exactly the kind of surprise that leaves a bad taste.

The numbers help explain the frustration. In a 2023 national survey, 72% of American adults told the Pew Research Center that tipping is expected in more places than it was five years earlier ^[3]. Pew also found that 57% said they would tip 15% or less for an average meal at a sit-down restaurant, and only about a quarter said they would tip 20% or more ^[3]. A fixed 20% charge is higher than what most Americans say they would choose to leave.

Pew found real confusion about the rules, too. Only 21% of adults said tipping is more of a choice, 29% said it is more of an obligation, and the largest share, 49%, said it depends on the situation ^[3]. When customers are not sure what is expected, a mandatory charge can feel like the decision has been made for them.

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What the Law Says

Mandatory restaurant service charges are generally legal when they are disclosed. The Federal Trade Commission's rule on unfair or deceptive fees, which took effect in 2025, requires sellers of live-event tickets and short-term lodging to show the total price up front and to explain what fees are for, according to the FTC ^[4]. Because the rule applies only to those two industries, restaurants fall outside it ^[4]. The agency has also warned covered businesses against vague labels such as "service fees" that do not tell customers what they are paying for ^[4].

What Diners Can Do

Read the menu and the bottom of the check before you pay. If a service charge is already included, you are not obligated to add another tip unless you want to reward exceptional service. If you are unsure where the money goes, ask your server or the manager. Most restaurant workers would rather answer a polite question than lose a customer.

The Bigger Picture

The Ford's Garage story is a small one, but it says something about the country's mood. After years of rising prices, Americans want to know what they are paying before the bill arrives, and they want the choice to reward good service themselves ^[1][3]. Businesses that are clear and fair with customers tend to keep them. This one heard the message, and that is how a free market is supposed to work.