The Federal Trade Commission (FTC) has extended the comment deadline regarding their sweeping proposal that would ban service fees and surcharges at restaurants of all sizes. Restaurant operators will have until February 7, 2024 to provide input.
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 in Washington to change this rule, but the FTC needs to hear your voice and your perspective.
Please take two minutes to help us fight this unaffordable regulatory overreach by sharing your views here.
To learn more, see the National Restaurant Association's new fact sheet on the FTC proposal and view the recording of their webinar on how the proposal would negatively effect restaurants.