Guides / Online ordering
Colorado's restaurant service fee law (HB25-1090), explained
Since January 1, 2026, Colorado's HB25-1090 requires businesses, including restaurants, to show the total price including mandatory fees, or clearly disclose those fees, instead of adding surprise charges at checkout. Restaurants can still charge service fees, but must disclose the amount on menus, websites and receipts. It applies online too.
What does HB25-1090 require?
The law targets hidden or surprise fees. For restaurants, guidance from Colorado law firms describes two main points:
- Mandatory charges should be included in the advertised price, or clearly disclosed before the guest commits to buying.
- Service charges remain allowed, but the amount must be disclosed, and the disclosure should appear on menus, websites, receipts and in what staff tell guests.
Does it apply to online ordering?
Yes. Guidance on the law notes it applies across platforms, including online ordering and reservation systems. If your online orders include a service fee, show it on the menu page and at checkout, before the guest pays.
Restaurant compliance checklist
- List every mandatory fee you charge: service fees, kitchen fees, online fees.
- Show each fee on the menu, in store and online, near the prices.
- Show the fee again at checkout, before payment.
- Print it as its own line on receipts.
- Train staff to explain the fee in one sentence.
- Review your third-party ordering pages too.
What happens if you don't comply?
Guidance on the law notes that guests can bring claims over illegal fees and recover actual damages, interest and attorney's fees. Clear disclosure is cheaper than a dispute.
How Forkrado handles the 5% guest fee
Forkrado ordering pages show the 5% guest service fee on the menu page and at checkout before the guest pays, and print it as its own line on the receipt.
Questions owners ask
Can Colorado restaurants still charge a service fee?
Yes, as long as the fee is clearly disclosed or included in the price.
When did the law take effect?
January 1, 2026.
Do I need to say where the fee goes?
Disclose the amount and, for service charges, how it is distributed, in simple language. Ask your attorney for your situation.
Does it apply to delivery apps?
The law applies across platforms. Check how each app shows your fees.
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