Service Fees Are In Jeopardy: A Notice From The NRA
The information provided by the National Restaurant Association is so important that it deserves to be directly included in this blog post.
The Federal Trade Commission (FTC) just released the text of a sweeping proposal that would ban service fees and surcharges at restaurants of all sizes.
As the FTC’s proposed rule is written it would prevent operators from including common, accepted surcharges on a customer’s bill. It would even ban delivery, large party, and credit card processing surcharges.
Instead, the proposed rule would force operators to overhaul menu prices so that the listed price is the total price a customer must pay. Higher menu prices will reduce customer traffic, reducing income for restaurant employees and operators.
The FTC admits its plan will cost restaurant operators $3.5 billion to implement.
The National Restaurant Association will lead the industry effort here in Washington to change this rule, but the FTC needs to hear your voice and your perspective.
We will stay focused on this issue and keep you updated as it develops. Again, you can add your voice by clicking here. Thanks for your engagement and everything you do for your community.
Executive Vice President of Public Affairs
National Restaurant Association
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