Ford’s Garage May Reconsider 20% Service Fee at Some Florida Locations

Ford’s Garage may reconsider a controversial policy that automatically adds a 20 percent service charge to customers’ checks at some Florida restaurants, with the chain’s president acknowledging that some diners are unhappy with the mandatory fee.

In an interview with Fox News Digital, Billy Downs said the policy, which is being tested by a franchisee at five locations in Florida, remains under review.

“I think we need to listen to the consumer on these things, to be honest with you,” Downs said. “That is indeed the case, and perhaps we are encouraging a change in this program.”

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Marc Brown, president of franchisee 23 Restaurant Services, told Fox News Digital that the program has been largely successful, resulting in higher wages for employees without alienating most customers.

“Our servers in locations that run our service fee program earn a significantly higher average hourly wage than our servers and bartenders in locations that do not,” Brown said.

A Ford’s Garage franchisee in Florida (not shown) automatically charges a 20% service fee on all checks in lieu of tips. (Peter Burke/Fox News Digital)

This policy is part of a team service model introduced by 23 Restaurant Services, which operates Ford’s Garage restaurants throughout Florida.

Rather than relying on traditional tipping, the model automatically adds a 20% service fee to each check to support a commission-based compensation structure.

Servers and bartenders earn commissions based on sales, while the model is also designed to provide fairer compensation for kitchen and support staff, according to the franchisee’s website.

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Additional tipping is optional.

Downs said the experiment was intended to determine whether a different compensation model could help control costs while still rewarding employees for their service.

“It was certainly a test to see if it could help reduce costs for the consumer, while still rewarding the server,” he said.

Billy Downs, president of Ford’s Garage, told Fox News Digital that the company “may encourage a change” in the testing program. (Fox News Digital)

Ford’s Garage in Plantation, near Fort Lauderdale, is among the restaurants that have implemented this policy “in lieu of traditional tipping,” according to its website. This location also adds a separate 1% entertainment fee assessed by the mall.

“These fees are passed directly to the mall, are not a gratuity, and are not retained by Ford Garage or distributed to employees,” the website states.

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Brown said the service charge is disclosed to customers multiple times verbally and in writing before ordering, giving them the choice of dining in.

“So for us it’s no different than just charging a higher price on the menu,” he said.

Most customers don’t mind the fees, Brown said, “because they like the Ford’s Garage experience.”

The president of 23 Restaurant Services said most customers aren’t bothered by the fee “because they like the Ford’s Garage experience.” (Peter Burke/Fox News Digital)

But Downs acknowledged the policy has sparked some controversy.

“There have been some big wins, and some consumers just don’t want to pay service fees,” he said.

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The experiment comes as restaurateurs grapple with rising labor costs and changes to the minimum wage.

“But the bigger issue is people don’t want to have a mandatory service fee, and I get that,” Downs said. “You know, I’m not sure I want to at times either.”

“We haven’t made any decisions, but we talk about it regularly.”

Brown, however, said the criticism appears to come from a relatively small percentage of diners, noting that most participating restaurants have experienced year-over-year growth after operating under that model for several years.

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He also rejected the idea that an automatic service charge would diminish a server or bartender’s incentive to provide quality hospitality, saying employees are expected to “provide excellent service to every customer, regardless of what they expect to receive in terms of extra tip.”

Under the model implemented in some Ford garages, tipping is optional. (iStock)

Founded in Fort Myers in 2012, Ford’s Garage now has 36 restaurants in nine states. Downs said the chain has prioritized affordability, with the average customer check around $26 and weekday value meals starting at $10.99.

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Downs, who previously spoke to Fox News Digital about the chain’s emphasis on old-fashioned hospitality, said providing consistent good service can help address customer concerns.

“If you provide excellent service at all times, it can help eliminate problems,” Downs said.

As for whether the service fee policy could change, Brown said discussions are ongoing.

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“We haven’t made any decisions, but we talk about it regularly,” he said.