Florida restaurants will reveal hidden service charges starting July 1

In the United States, particularly Florida, a new bill was signed by Governor Ron DeSantis that mandates transparency in restaurant service fees and automatic tips. This legislation, identified as SB 606, will come into effect on July 1. It necessitates that public food service establishments clearly inform customers about any operations charges, which are fees imposed aside from taxes, as well as any automatic gratuities. This requirement aims to eliminate hidden fees that confuse diners and ensure consumers are fully aware of the total cost of their meals at the point of ordering. The impetus behind the legislation arose from a growing concern about undisclosed service charges in the hospitality industry. Representative Demi Busatta, a Coral Gables Republican, championed the cause after experiencing a situation where her restaurant bill included an unexplained service charge alongside a pre-set gratuity. This sparked her initiative to address the unwelcome trend where diners were frequently confronted with automatic tips—sometimes summed up to a substantial 20 percent—not only at traditional sit-down restaurants but also at fast-casual dining spots. The new regulations specifically highlight that for restaurants lacking traditional menus or table service, notices informing patrons of these charges must be visible in a conspicuous manner either on menu boards or posted signs near payment areas. This move ultimately seeks to empower consumers by allowing them to make informed decisions about their dining expenses and to combat the surprise of unknown charge additions. As implementation approaches, the restaurant industry braces for the changes, recognizing that transparency may lead to shifts in dining practices while simultaneously seeking ways to inform customers effectively without detracting from their overall dining experiences. The transition should help cultivate a dining environment where customers feel secure about the pricing structures they are engaging with, fostering greater trust between patrons and restaurants.