Ford’s Garage restaurant chain is reconsidering its controversial mandatory 20% service charge policy at five Florida locations after customers pushed back against the automatic fee that replaced traditional tipping.
Chain President Acknowledges Customer Pushback
Billy Downs, president of Ford’s Garage, told Fox News Digital the company is listening to consumer complaints about the mandatory service charge. The policy, implemented by franchisee 23 Restaurant Services at five Florida locations, automatically adds 20% to every check instead of allowing customers to choose their own tip amount. Downs acknowledged the friction, stating the chain may encourage abandoning the program despite initial intentions to control costs while rewarding employees.
The automatic charge is part of a team service model that pays servers and bartenders commission-based compensation tied to their sales volume. The system was designed to provide more equitable pay for kitchen and support staff who traditionally do not receive tips. Marc Brown, president of 23 Restaurant Services, defended the program, saying servers at locations with the service charge earn significantly higher average hourly pay than those at traditional tipping locations.
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Customers Object to Mandatory Fees
The biggest complaint centers on removing customer choice from the tipping process. Downs admitted that while some aspects succeeded, many diners refuse to accept a mandated service charge. The Ford’s Garage location in Plantation near Fort Lauderdale implemented the policy and also adds a separate 1% entertainment fee that goes directly to the shopping center, not employees or the restaurant.
Brown said customers receive multiple verbal and written disclosures about the service charge before ordering, giving them the option to leave if they object. He compared the fee to simply charging higher menu prices and claimed most guests accept it because they enjoy the Ford’s Garage experience. Brown noted that participating restaurants have shown year-over-year growth despite operating under the model for multiple years, suggesting criticism comes from a small percentage of diners.
Industry Grapples With Labor Cost Solutions
The experiment reflects broader restaurant industry struggles with rising labor costs and changing tipped minimum wage requirements. Founded in Fort Myers in 2012, Ford’s Garage has expanded to 36 restaurants across nine states. The chain has emphasized affordability while navigating compensation challenges. Downs said no final decisions have been made but discussions about the service charge policy continue regularly. The tension between employee compensation and customer satisfaction remains unresolved as the company weighs whether to maintain, modify, or eliminate the mandatory fee structure at franchise locations.