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Why these Richmond restaurants are ending the automatic 20% service fee

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RICHMOND, Va. -- There is an old saying in the business world that the customer is always right. That adage was one reason why HOUSEpitality Family restaurants, the owners of Richmond-area restaurants The Boathouse, Island Shrimp Co., and Casa del Barco, have changed their post-pandemic business practices again.

The restaurants have now stopped adding an automatic 20% service fee on the bill.

"We started using the service fee during the pandemic as a way to guarantee a professional wage to our entire team," owner Kevin Healy said. "Over time, however, we’ve gotten consistent feedback from guests and staff that they miss the direct connection that individual tips allow. Now that things are more back to normal, we’re excited to shift from ‘stabilizing’ to ‘maximizing’ the guest experience."

The news was welcome on social media as some diners commented they noticed the automatic 20 percent might deter top-notch service since a 20 percent tip was automatically given.

During the pandemic, the HOUSEpitality Family restaurants adopted a QR-code-heavy ordering experience which it later abandoned amid mixed reviews from customers.

Last year, the company announced it was closing its Casa del Barco and Island Shrimp Co. locations at Chesterfield Towne Center. Those locations will reopen under the Lindsey Food Group as ML Steak and a new restaurant concept Kali Love.

Speaking of 20 percent, HOUSEpitality Family is offering 20 percent off the entire menu at all Boathouse, Island Shrimp Co, and Casa del Barco locations on February 20. Reservations are recommended.

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