The Federal Trade Commission (FTC) has issued a proposed rule that would ban common restaurant service fees and surcharges. The proposed rule claims to target so-called “junk fees” throughout the economy, but it is so expansive that it would ban widely accepted restaurant fees, such as delivery and large-party service fees. 

If adopted, it will cause chaos for restaurant operators, employees and customers. It would force restaurant operators to raise menu prices, rewrite how servers get paid, and create multiple menus for customers based on type of payment, delivery or dine-in, and even the dining party size. 

The FTC estimates this rule will cost operators up to $3.5 billion to implement.

This rule is unaffordable and unworkable for the nation’s restaurant operators. The Association provided extensive comments about the impact on the restaurant to the FTC and is working with Members of Congress to raise concerns about how this proposal would negatively impact the restaurant industry before the FTC issues a final rule, likely later this year.

Tell the FTC that restaurant operators and workers can’t afford this regulatory overreach here
Fact Sheets
Fact Sheets
The FTC’s Menu Mandate
May 31, 2024
FTC Surcharge Ban Policy Brief
April 15, 2024
FTC Unfair and Deceptive Fees Comments
February 07, 2024