Ford's Garage may reconsider automatic 20% service charge

Summarised from 2 outlets · Updated 14 Nov, 19:38 · Archive

Ford's Garage is reconsidering a mandatory 20% service charge introduced at five Florida locations after customer complaints.

Ford's Garage is reconsidering a policy that automatically adds a 20% service charge to customers' checks at five Florida restaurants. The chain's president Billy Downs acknowledged in an interview that some diners are unhappy with the mandatory fee. 'I think that we need to listen to the consumer on those things, to be honest with you,' Downs said. 'So, we are, and we may be encouraging a change to that program.'

The policy, introduced by franchisee 23 Restaurant Services, replaces traditional tipping with a commission-based compensation structure. Marc Brown, president of 23 Restaurant Services, told Fox News Digital the programme has been 'largely successful', resulting in higher wages for employees without alienating most customers. '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.

Downs said the experiment was intended to explore whether the different compensation model could help control costs whilst rewarding employees for their service. Additional tips remain optional under the policy. The franchisee reports the programme has driven year-over-year growth for the restaurants.

How it is being reported

• Popular restaurant chain may rethink controversial service charge after customer backlashFord's Garage franchisee says the service charge model has driven year-over-year growth despite some pushbackNew York Post · 14 Nov, 19:22
• Restaurant chain may rethink controversial 20% service charge in some venues after customer pushbackA Ford's Garage franchisee in Florida is testing a 20% automatic service charge at select restaurants, but the company's president admits some diners don't want a mandated fee.Fox News · 14 Nov, 11:00

In this story: Ford's Garage · Billy Downs · Marc Brown · 23 Restaurant Services · Florida

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