A NEW law is set to give customers the ability to opt out of hidden service fees and automatic tips at restaurants.
Lawmakers in Florida have created a bill that would give control back to the consumer, but the hospitality industry in the state is concerned servers will suffer as a result.
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Often, when a large party goes to a restaurant, an automatic tip is added.
However, under bill HB 535, titled “Public Lodging and Public Food Service Establishments”, Florida restaurants would no longer be able to automatically charge gratuities for groups sized six or fewer.
While the main function of the law is to make it easier for restaurants and hotels to remove customers who don’t pay their bill, this additional section tackling automatic tips has made its way on as an amendment.
Meehan’s Irish Pub owner Reggie Maggs is concerned the new law will ruin the chance for employees to be compensated for the extra work they conduct when serving big groups.
She explained that many members of her team have to help out to take care of a large party, meaning they’re unable to help serve other tables much.
As a result, she feels, they should have his automatic tip added on to their meals, she told WJAX-TV.
But for many diners, the bill will relieve them of the “disappointment” of having to pay a large tip by force.
Brandon Woody told 12 News: “Sometimes I just want to make sure that the service was great, and the food was great, and that even the atmosphere and everything I want to experience it before I am forced to put 20% on, you know, as a tip.”
While he’s not against tipping as a culture, Woody just wants to be the one in control when deciding how much he wants to tip.
Sasha Aronberg also echoed Brandon’s frustration, slamming restaurants for not disclosing the charges up front.
She explained, since service charges are based on the quality of service, that she would prefer to choose the percentage based on the service she receives, rather than pay an automatic charge.
If HB 535 passes, Florida restaurants will have to disclose any hidden charges upfront as well as on their menus and receipts.
This way, diners will be able to know exactly where their money is going.
For groups of seven or more guests, diners would be provided with the ability to opt out of the service charge if they felt it was not up to par.
There has been large backlash from the hospitality industry on this decision, with the Florida Restaurant and Lodging Association (FRLA) saying the move would harm restaurants already struggling with rising costs.
Vice President of Government Relations and General Counsel for FRLA Samantha Padgett has argued service charges are essential for keeping restaurants afloat, especially during difficult economic periods.
What is ‘guilt’ tipping?
Recently, tipping has become optional for services such as getting groceries delivered, ordering rideshare, or even getting a coffee to go.
Tim Self, an assistant professor of hospitality at Austin Peay State University in Clarksville, Tennessee, told CNBC that many people are tipping out of “guilt.”
“Customers are being asked to tip at the more traditional service encounters [and] also app-based services, ride-share and delivery apps.
“This gives the perception that tipping is everywhere, which does seem the case.”
Self says that Americans are becoming more familiar with tipping prompts on payment screens, saying “the guilt kind of washes over you.”
The average tip left for a full-service restaurant in 2023 was 19.4%, down from 19.5% in 2019, according to a restaurant trends report by Toast.
Tipping habits also differ between different generations, according to research by Blueprint.
Millennials are the most generous while those as from the Silent Generation are less likely to leave a big tip.
She explained that these fees can help to cover overhead costs such as credit card processing fees as well as provide benefits for workers in back of house roles who don’t normally receive tips.
However, Padgett admitted that diners should be given more transparency over where their money is going.
Despite this though, she does not believe the elimination of service charge would be the best option as it could, she argues, increase costs or reduce staff pay.
Across America, tipping culture has sparked a conversation, with one poll finding that 90 per cent felt tipping had become “out of control”.
In that very same survey, 83 per cent said automatic tipping charges should be banned entirely, with around half of Americans admitting they often tip due to social pressure, rather than quality of service.
HB 535 still has many steps to pass before it could become law, having just cleared its first committee stop in the Florida House.
If it passes the House and Senate, and is signed by the governor, the law would take effect from July 1.
Tricks restaurants use to make you spend more money
A BEHAVIOUR expert has revealed the nine tricks restaurants do to influence you to part with your cash from the moment you step inside.
Here are some of the standout methods used by venues around the world.
Inviting you to the bar to wait:
By bringing you to the bar, restaurants give you something to enjoy within minutes, lifting your mood and distracting you from the wait.
It also adds high-profit margin items to your bill before you’ve even sat down to order.
Giving you a heavy menu:
Restaurants choose to give out heavy menus as these are associated with better service.
Since you believe you’ll be at a higher quality establishment, you may be more inclined to spend more.
Using decoy pricing:
Restaurants often use anchor pricing to influence the way we interpret prices.
By having highly priced dishes on the menu, right next to slightly cheaper ones, the value of the pricier dish feels better, potentially tempting us to go for it.
Removing the $ sign from the menu:
By removing the $ sign from menus, some restaurants may trick you into spending more.
One study found guests given the numeral-only menu spent significantly more than those who received a menu with prices showing a dollar sign or those whose menus had prices written out in words.
That’s because monetary symbols are powerful visual triggers that remind us we’re about to lose something we value, prompting our instinct to spend less.
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