The direction is the same on both sides of the Atlantic: the price on your menu should be the price your guest pays. In the UK and most of the EU, a mandatory service or cover charge belongs inside the menu price. In the US, there is no single federal rule for restaurants, but California, Minnesota, Colorado and Massachusetts now regulate how mandatory fees are shown. Optional tips and genuinely discretionary service charges are still fine almost everywhere, as long as they are clearly optional. Here is what each market requires and how to set up your menu so you never have to argue about the bill.

⚡ Quick answer

US: California lets restaurants keep a mandatory fee only if it is clearly disclosed, with its purpose, on every menu that shows prices. The FTC junk fees rule does not cover restaurants. UK: since 6 April 2025, mandatory service or cover charges must be in the headline price. Tips and service charges must reach staff in full. EU: menu prices must be final prices including taxes, and some countries require service to be included.

This article is general information, not legal advice. Fee rules change quickly and vary by state, city and country, so confirm with a local adviser or regulator before you change your pricing.

United States: a state-by-state picture

The FTC fees rule does not cover restaurants

The FTC's Rule on Unfair or Deceptive Fees (16 CFR Part 464) took effect on May 12, 2025. It requires businesses to show the total price, including mandatory fees, whenever they display a price. But the final rule is limited to live-event tickets and short-term lodging, such as hotels and vacation rentals. Restaurants, bars and cafes are outside its scope. The FTC is enforcing it in its own lane and filed a complaint against a ticket resale platform in April 2026. For restaurants, the action is at state level.

California: SB 478 and the SB 1524 restaurant carve-out

California's SB 478, which the Attorney General calls the Honest Pricing Law, took effect on July 1, 2024. It added to the Consumer Legal Remedies Act a ban on advertising or offering a price that leaves out mandatory fees or charges, other than government taxes and fees and shipping costs. The law does not cap what you charge. It simply says the price you show must include everything that is mandatory.

Restaurants pushed back, and two days before the start date Governor Newsom signed SB 1524 (June 29, 2024). It exempts a mandatory fee or charge for food or beverage sold directly to customers by restaurants, bars, food concessions, grocery stores and grocery delivery services, plus banquet and catering services that fully disclose terms in a menu or contract. The condition is strict: the fee must be clearly and conspicuously displayed, with an explanation of its purpose, on any advertisement, menu or other display that contains the price of a food or beverage item. Since July 1, 2025, "clear and conspicuous" means the standard in Civil Code section 1791(u): larger type, contrasting type, font or color, or otherwise set off from the surrounding text.

Two details trip people up. The carve-out does not cover third-party food delivery platforms. And it applies to every place a price appears, so your QR menu, website and online ordering page need the same fee notice as the printed menu. A line in tiny print at the bottom of one page is not what the law describes.

Other states with their own rules

State	In force	What it means for restaurants
California	July 1, 2024	SB 478 requires advertised prices to include all mandatory fees. SB 1524 lets restaurants, bars, food concessions and grocery stores add a mandatory fee if it is clearly and conspicuously shown, with an explanation of its purpose, wherever food or drink prices appear.
Minnesota	January 1, 2025	Prices must include all mandatory fees. Food and beverage establishments comply on automatic, mandatory gratuities by clearly and conspicuously disclosing the percentage charged.
Massachusetts	September 2, 2025	The Attorney General's junk fee regulations (940 CMR 38.00) require total-price disclosure up front, with separate guidance for restaurants and delivery fees.
Colorado	January 1, 2026	HB25-1090 requires the total price to be disclosed and has specific provisions for mandatory service charges at food and beverage establishments, including telling customers how the charge is distributed.

Minnesota's statute separately requires food delivery platforms to disclose their added fees when the customer picks a restaurant or items. Colorado treats violations as deceptive trade practices under its Consumer Protection Act, which opens the door to both Attorney General action and consumer claims. Other states and cities have bills in progress, so treat this list as a starting point rather than a complete map.

United Kingdom: drip pricing is banned, tips go to staff

DMCC Act 2024: the menu price must be the total price

The consumer protection part of the Digital Markets, Competition and Consumers Act 2024 applies to commercial practices from 6 April 2025. It requires the total price, including all mandatory charges, to be given in the "invitation to purchase". Hiding mandatory fees until later is drip pricing, and it is unlawful.

The CMA's price transparency guidance (CMA209, published 18 November 2025) is direct about restaurants. It lists a menu, including a physical menu card or a digital menu accessed by scanning a QR code, as an invitation to purchase. And it lists mandatory cover or service charges at a restaurant as mandatory charges that belong in the total price. Genuinely optional charges must still be disclosed but can be shown separately from the total. The CMA can now fine businesses directly: up to 10% of turnover or £300,000, whichever is greater.

In practice, that leaves UK restaurants with two clean options. Build any compulsory charge into your dish prices, or keep a discretionary service charge that is clearly labelled as optional on the menu and the bill, and that guests can remove without friction. For the full UK picture on calories and allergens too, see our UK restaurant menu rules guide.

Employment (Allocation of Tips) Act 2023

Since 1 October 2024, employers must pass tips, gratuities and service charges paid by customers to workers in full, and share them fairly. The statutory code of practice requires a written tipping policy available to all workers, a clear and objective basis for allocation, and records that workers can request, kept for three years. Employment tribunals can order an employer to revise an unfair allocation. The Employment Rights Act 2025 adds a duty to consult workers when drawing up or revising the policy, and the government has said a revised code will follow after a new consultation. Until then, the existing code applies.

European Union: final prices, and national rules on top

Two EU directives set the baseline. The Price Indication Directive (98/6/EC) defines the selling price as the final price, including VAT and all other taxes. The Unfair Commercial Practices Directive (2005/29/EC) says that in an invitation to purchase, the price must include taxes and any additional charges must be made clear. Leaving out a mandatory extra can be a misleading omission. Since the Omnibus Directive (EU) 2019/2161, member states must be able to impose fines of at least 4% of annual turnover for widespread infringements.

Member states then add their own restaurant rules. Two well-known examples:

France: under the arrêté of 27 March 1987 on price display in establishments serving food and drink for consumption on site, displayed prices must include taxes and service, marked "prix service compris". Prices of certain common items must also be visible from outside.
Germany: § 13 of the Price Indication Ordinance (Preisangabenverordnung) requires restaurants to show prices in a price list, and those prices must include the service charge and any other surcharges.

If your menu lists allergens as well as prices, the EU has a separate set of rules for that. Our EU 14 allergens guide explains them.

US vs UK vs EU at a glance

Topic	🇺🇸 US	🇬🇧 UK	🇪🇺 EU
Mandatory service charge	Depends on the state. California, Minnesota and Colorado allow it with specific disclosure rules.	Must be included in the headline price on the menu.	Generally must be inside the displayed price (e.g. France, Germany).
Optional service charge or tip	Not a mandatory fee if genuinely optional. Make that clear.	Can sit outside the price if genuinely optional, but must be disclosed.	Voluntary tips are outside the price. Do not present them as owed.
Who regulates	State attorneys general and private lawsuits. The FTC fees rule does not cover restaurants.	CMA (direct fines) and Trading Standards.	National consumer and price authorities.
Does a QR menu count?	Yes. SB 1524 applies to any menu or display that shows prices.	Yes. CMA guidance names QR code menus as invitations to purchase.	Price rules apply to the menu in whatever form it is offered.

How to show prices on your menu: a checklist

1List every charge on your bills — Service charge, cover charge, kitchen or wellness fee, card surcharge, large-party gratuity, bread or water charges. Mark each as mandatory or optional.
2Fold mandatory charges into prices where you can — It is the simplest way to comply in the UK, the EU and most US states, and it removes the awkward conversation at the end of the meal.
3If you keep a separate fee, disclose it everywhere prices appear — Printed menu, menu board, website, QR menu, ordering app. Say what it is, how much it is, and what it pays for.
4Make optional really optional — Use words like "optional" or "discretionary" and make it easy to remove. Staff should not push back when a guest asks.
5Keep channels consistent — The QR menu, the printed menu and the online ordering page should show the same prices and the same fee wording.
6Check what happens to the money — In the UK, tips and service charges must reach workers in full under a written policy. In the US, labor rules on tips and service charges vary by state.
7Review once a year — This area moved fast in 2024 to 2026. Put a calendar reminder to re-check your state, city or country rules.

Example wording (California style)

"A 4% kitchen fee is added to all checks. It goes to our kitchen team on top of their wages. This fee is not a tip." Place it near the prices on every menu and display, in type that stands out, not only at the bottom of the last page. Adapt the wording to your actual fee and to your state's rules.

Keeping every channel in sync

Most fee problems are not deliberate. They happen when the printed menu is updated and the QR menu, the website or the delivery listing is not. A digital menu managed from one place reduces that risk because a price change or a new fee notice shows up everywhere at once. MenuMan, an AI-powered transparent QR menu platform, is one way to do that: it turns a photo of your menu into a multilingual QR menu that you can edit, and the free plan includes 10 AI credits. Any well-run digital menu works, as long as one source of truth feeds every channel. Our guides to QR code menu legal requirements and the best QR code menu apps in 2026 can help you choose. For calories and allergens in the US, see FDA menu labeling for US restaurants, and for a three-region overview, the menu compliance guide for the UK, EU and US.

Frequently asked questions

Is a restaurant service charge legal in California?+

Yes, if you follow SB 1524. A restaurant can add a mandatory fee or charge if it is clearly and conspicuously displayed, with an explanation of its purpose, on any menu, advertisement or other display that contains the price of food or drink. The exemption does not cover third-party food delivery platforms. Since July 1, 2025, the disclosure has to meet the clear and conspicuous standard in Civil Code section 1791(u).

Does the FTC junk fees rule apply to restaurants?+

No. The FTC's Rule on Unfair or Deceptive Fees, in effect since May 12, 2025, covers live-event tickets and short-term lodging such as hotels and vacation rentals. Restaurant fees are governed by state law and general federal rules against deceptive practices.

Can a UK restaurant still add a 12.5% service charge?+

If it is discretionary and clearly presented as optional, the CMA's guidance allows optional charges to be shown separately from the headline price, as long as they are disclosed. If the charge is mandatory, it must be included in the menu prices. Either way, under the Employment (Allocation of Tips) Act 2023 the money must be passed to workers in full and shared fairly under a written policy.

What about a cover charge in Europe?+

EU rules require the selling price to be the final price, including VAT and other taxes, and the Unfair Commercial Practices Directive treats hidden mandatory extras as misleading. Some countries go further: France requires prices to be shown 'service compris', and Germany requires menu prices to include service and other surcharges. Check the national rules where you trade.

Is a credit card surcharge treated the same way?+

Often, but not always. In the US, card surcharges are regulated separately by state law and card network rules, and some states restrict them. In the UK and EU, surcharges on most consumer card payments are banned. If you add one where it is allowed, disclose it as clearly as any other mandatory fee.

Official sources

Bottom line: if a charge is compulsory, put it in the price or disclose it exactly where the price is. If it is optional, say so clearly and mean it. Do that across every menu you publish and you are on the right side of the rules in all three regions.

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